Saudi Steel Pipe Co. Faces Financial Challenges Amid Declining Sales and High Debt Burden

Saudi Steel Pipe Co., a microcap player in the ferrous metals industry, has recently undergone an adjustment in its evaluation. This revision reflects a complex interplay of various financial metrics and market conditions. The company has reported negative financial performance for the quarter ending December 2025, following a series of challenging quarters. Notably, net sales for this period reached SAR 336.4 million, indicating a decline of 14.25%. The company's management efficiency is highlighted by a Return on Capital Employed (ROCE) of 12.74%, suggesting limited profitability relative to its total capital. Additionally, the firm carries a significant debt burden, as evidenced by its debt-to-equity ratio, which raises concerns about long-term growth potential. Despite a historical annual growth rate of 20.54% in net sales and 44.57% in operating profit over the past five years, the recent performance has not aligned with these trends. Furthermore, the stock has generated a return of -47.40% over the past year, with profits declining by 2.8%. The current valuation reflects a price-to-book ratio of 3.46, indicating a potentially expensive valuation in light of its financial performance. Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.