Long Term Stock Recommendation for KSA Tadawul – A Complete Saudi Energy Sector Stock Analysis

Date
July 6, 2025
Analysed By
Naranj Capital Research Desk
Stock Market
Tadawul, Saudi Arabia

Saudi Tadawul Stock Trade Advice

  • Buy
  • Buy
    Range
  • Target
  • Stoploss
  • Upside
    Potential
  • Investment
    Duration
  • Aldrees Petroleum and Transport Services
  • 124 - 126
  • 148 - 152
  • -
  • 15% - 16%
  • 4 - 6 Months
  • Locked Image
    Locked Image
    Locked Image
    Locked Image

    15% - 16%

    4 - 6 Months

  • Buy
    Aldrees Petroleum and Transport Services
  • Buy
    Range
    124 - 126
  • Target
    148 - 152
  • Stoploss
    -
  • Upside
    Potential
    15% - 16%
  • Investment
    Duration
    4 - 6 Months
  • Locked Image
    Locked Image
    Locked Image
    Locked Image

    15% - 16%

    4 - 6 Months

    * Once the first target hit, reset the StopLoss at your buying price.

    Tadawul 4200 : Aldrees Petroleum and Transport Services - Stock Overview

  • Tadawul code
  • Stock Name
  • Sector
  • 52 Weeks High
  • 52 Weeks Low
  • 4200
  • Aldrees
  • Energy
  • 154.40
  • 99.80
  • Tadawul code 4200
  • Stock Name Aldrees
  • Sector Energy
  • 52 Weeks High 154.40
  • 52 Weeks Low 99.80
  • Abstract

    Looking for a solid investment in Saudi Arabia’s energy sector? Our latest analysis reveals why Aldrees Petroleum (Tadawul: 4200) deserves your attention.

    This 65-year-old company operates fuel stations and transportation services across Saudi Arabia, showing impressive 30% revenue growth and strong cash flow improvements.

    The stock trades at attractive valuations compared to peers, backed by global investors like Vanguard and BlackRock.

    With Saudi Vision 2030 driving infrastructure growth and the company’s diversified business model, Aldrees presents a compelling opportunity for long-term investors seeking exposure to the Kingdom’s expanding energy and logistics sectors.

  • Introduction to Aldrees Petroleum (Tadawul 4200)

    Are you looking for solid Saudi Stock Market Advice in the energy sector? Aldrees Petroleum and Transport Services Company (Tadawul: 4200) might be the perfect addition to your investment portfolio. This comprehensive analysis will help you understand why this Saudi Energy Sector Stock is catching the attention of both local and international investors.

  • Company Overview and Business Model of Aldrees Petroleum

    Aldrees Petroleum and Transport Services Company, headquartered in Riyadh, Saudi Arabia, was established in 1957. The company operates through two key segments: Petroleum Services and Transport Services.

    In its Petroleum Services segment, Aldrees is engaged in the wholesale and retail distribution of fuel, gasoline, oil, and lubricants across the Kingdom. Its modern fuel stations offer a wide range of services including car wash, tire and wheel alignment, accessories, additives, ATMs, food outlets, mosque facilities, car rentals, and convenience services. The company also develops, operates, and leases takeaway centers for hot and cold beverages, and provides catering services.

    Through its Transport Services segment, Aldrees delivers comprehensive logistics solutions, specializing in the transportation of both liquid and dry materials via a large fleet of trucks and trailers. It also offers highway-based freight services for goods distribution.

    With decades of experience, Aldrees has established itself as a prominent player in Saudi Arabia’s fuel and logistics sectors.

  • Technical Analysis of Aldrees Petroleum

    Aldrees Petroleum - Daily Technical Analysis
    Aldrees Petroleum - Daily Technical Analysis

    • The stock is currently in a prolonged consolidation phase, forming an ascending triangle pattern.
    • It has recently bounced off the trendline support, indicating renewed buying interest.
    • If this momentum continues, the price is likely to move higher in the near term.
  • Financial Performance: How Well is Aldrees Doing?

    Revenue and Profit Analysis of Aldrees Petroleum

    1. Year-on-Year Growth 

    Tadawul: 4200 - Aldrees - Revenue & Profit Analysis (YoY)

    • Revenue rose by 30%, reaching SAR 19,288 million in FY24, compared to SAR 14,834 million in FY23.
    • EBITDA increased to SAR 696 million, up from SAR 574 million in the previous year.
    • However, the EBITDA margin declined to 3.61% in FY24, down from 3.87% in FY23 — continuing its downward trend since FY2019.

    2. Quarter-on-quarter Performance

    Tadawul: 4200 - Aldrees - Revenue & Profit Analysis (QoQ)

    • Q4 FY24 revenue hit a new all-time high of SAR 5,250 million, up from SAR 5,080 million in Q3 — representing a 33% YoY growth from SAR 3,952 million in Q4 FY23.
    • EBITDA for Q4 climbed to SAR 241.4 million, compared to SAR 232 million in Q3.
    • The diluted EPS (LTM) improved to SAR 3.38 in Q4 FY24, up from SAR 3.17 in Q3 FY24.

     

  • Stock Valuation Metrics: Is the Stock Price Right?

    1. P/E Ratio (Price-to-Earnings)

    Tadawul: 4200 - Aldrees - PE vs. Peers PE
    Tadawul: 4200 - Aldrees - PE vs. Peers PE

    This ratio compares the company’s stock price to its earnings per share.

    Aldrees Petroleum’s stock is trading at a Price-to-Earnings (P/E) ratio of 34.1x, which is attractively valued compared to the peer average of 38.4x. This indicates the stock is relatively cheaper despite strong earnings performance.

    2. P/B Ratio (Price-to-Book)

    Tadawul: 4200 - Aldrees - PB vs. Peers PB
    Tadawul: 4200 - Aldrees - PB vs. Peers PB

    This ratio compares the company’s stock price to its book value.

    At a Price-to-Book (P/B) ratio of 8.6x, the stock appears expensive relative to peers, whose average stands at 6x. This may reflect premium market expectations or overvaluation based on asset book value.

    3. PEG Ratio (Price/Earnings to Growth)

    This ratio looks at the P/E ratio while also considering the company’s expected earnings growth.

    The PEG ratio stands at 1.34, well below the threshold of 2, suggesting the stock is undervalued in relation to its expected earnings growth. This makes it potentially attractive for growth-oriented investors.

  • Financial Health Check: Cash Flow Analysis and Debt Position

    1. Cash Flow from Operations

    Cash flow from operations is the money a company generates from its normal business activities.

    In FY24, cash flow from operations rose significantly to SAR 1,398 million, up from SAR 974 million in FY23. This robust growth indicates improved operational efficiency and stronger cash generation capacity.

    2. Debt Position

    Debt-to-Equity Ratio is a measure of how much debt a company uses to finance its assets relative to the value of shareholders’ equity.

    As of Q4 FY24, Aldrees reported total debt of SAR 4,222 million, resulting in a debt-to-equity ratio of 0.5. This moderate leverage reflects the company’s strong financial health and prudent capital structure, offering ample room for future expansion without excessive debt burden.

  • Major Shareholders and Institutional Interest

    Tadawul: 4200 - Aldrees - Top Shareholders
    Tadawul: 4200 - Aldrees - Top Shareholders

    • The Vanguard Group holds a 1.93% stake in the company, indicating strong institutional interest.
    • BlackRock owns 0.95%, further reinforcing confidence from global asset managers.
  • Conclusion

    Aldrees Petroleum and Transport Services Company stands out as a well-established player in Saudi Arabia’s fuel and logistics sectors. Backed by consistent revenue growth, expanding operational cash flows, and a solid financial position with low leverage, the company is well-positioned to benefit from the Kingdom’s ongoing infrastructure and transport development.

    With an attractive PEG ratio, strong institutional backing, and a bullish technical setup, Aldrees presents a compelling mid-to-long-term opportunity for investors seeking investment advice in Saudi stocks in the energy and transport sectors.

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  • Buy
  • Buy
    Range
  • Target
  • Stoploss
  • Upside
    Potential
  • Investment
    Duration
  • Aldrees Petroleum and Transport Services
  • 124 - 126
  • 148 - 152
  • -
  • 15% - 16%
  • 4 - 6 Months
  • Buy Aldrees Petroleum and Transport Services
  • Buy
    Range
    124 - 126
  • Target 148 - 152
  • Stoploss -
  • Upside
    Potential
    15% - 16%
  • Investment
    Duration
    4 - 6 Months
  • Buy
  • Buy
    Range
  • Target
  • Stoploss
  • Upside
    Potential
  • Investment
    Duration
  • Aldrees Petroleum and Transport Services
  • 124 - 126
  • 148 - 152
  • -
  • 15% - 16%
  • 4 - 6 Months
  • Locked Image
    Locked Image
    Locked Image
    Locked Image

    15% - 16%

    4 - 6 Months

  • Buy
    Aldrees Petroleum and Transport Services
  • Buy
    Range
    124 - 126
  • Target
    148 - 152
  • Stoploss
    -
  • Upside
    Potential
    15% - 16%
  • Investment
    Duration
    4 - 6 Months
  • Locked Image
    Locked Image
    Locked Image
    Locked Image

    15% - 16%

    4 - 6 Months

    * Once the first target hit, reset the StopLoss at your buying price.
    * Trade durations are approximate; actual holding period may vary.

    Tadawul 4200 : Aldrees Petroleum and Transport Services - Stock Overview

  • Tadawul code
  • Stock Name
  • Sector
  • 52 Weeks High
  • 52 Weeks Low
  • 4200
  • Aldrees
  • Energy
  • 154.40
  • 99.80
  • Tadawul code 4200
  • Stock Name Aldrees
  • Sector Energy
  • 52 Weeks High 154.40
  • 52 Weeks Low 99.80
  • Abstract

    Looking for a solid investment in Saudi Arabia’s energy sector? Our latest analysis reveals why Aldrees Petroleum (Tadawul: 4200) deserves your attention.

    This 65-year-old company operates fuel stations and transportation services across Saudi Arabia, showing impressive 30% revenue growth and strong cash flow improvements.

    The stock trades at attractive valuations compared to peers, backed by global investors like Vanguard and BlackRock.

    With Saudi Vision 2030 driving infrastructure growth and the company’s diversified business model, Aldrees presents a compelling opportunity for long-term investors seeking exposure to the Kingdom’s expanding energy and logistics sectors.

  • Introduction to Aldrees Petroleum (Tadawul 4200)

    Are you looking for solid Saudi Stock Market Advice in the energy sector? Aldrees Petroleum and Transport Services Company (Tadawul: 4200) might be the perfect addition to your investment portfolio. This comprehensive analysis will help you understand why this Saudi Energy Sector Stock is catching the attention of both local and international investors.

  • Company Overview and Business Model of Aldrees Petroleum

    Aldrees Petroleum and Transport Services Company, headquartered in Riyadh, Saudi Arabia, was established in 1957. The company operates through two key segments: Petroleum Services and Transport Services.

    In its Petroleum Services segment, Aldrees is engaged in the wholesale and retail distribution of fuel, gasoline, oil, and lubricants across the Kingdom. Its modern fuel stations offer a wide range of services including car wash, tire and wheel alignment, accessories, additives, ATMs, food outlets, mosque facilities, car rentals, and convenience services. The company also develops, operates, and leases takeaway centers for hot and cold beverages, and provides catering services.

    Through its Transport Services segment, Aldrees delivers comprehensive logistics solutions, specializing in the transportation of both liquid and dry materials via a large fleet of trucks and trailers. It also offers highway-based freight services for goods distribution.

    With decades of experience, Aldrees has established itself as a prominent player in Saudi Arabia’s fuel and logistics sectors.

  • Technical Analysis of Aldrees Petroleum

    Aldrees Petroleum - Daily Technical Analysis
    Aldrees Petroleum - Daily Technical Analysis

    • The stock is currently in a prolonged consolidation phase, forming an ascending triangle pattern.
    • It has recently bounced off the trendline support, indicating renewed buying interest.
    • If this momentum continues, the price is likely to move higher in the near term.
  • Financial Performance: How Well is Aldrees Doing?

    Revenue and Profit Analysis of Aldrees Petroleum

    1. Year-on-Year Growth 

    Tadawul: 4200 - Aldrees - Revenue & Profit Analysis (YoY)

    • Revenue rose by 30%, reaching SAR 19,288 million in FY24, compared to SAR 14,834 million in FY23.
    • EBITDA increased to SAR 696 million, up from SAR 574 million in the previous year.
    • However, the EBITDA margin declined to 3.61% in FY24, down from 3.87% in FY23 — continuing its downward trend since FY2019.

    2. Quarter-on-quarter Performance

    Tadawul: 4200 - Aldrees - Revenue & Profit Analysis (QoQ)

    • Q4 FY24 revenue hit a new all-time high of SAR 5,250 million, up from SAR 5,080 million in Q3 — representing a 33% YoY growth from SAR 3,952 million in Q4 FY23.
    • EBITDA for Q4 climbed to SAR 241.4 million, compared to SAR 232 million in Q3.
    • The diluted EPS (LTM) improved to SAR 3.38 in Q4 FY24, up from SAR 3.17 in Q3 FY24.

     

  • Stock Valuation Metrics: Is the Stock Price Right?

    1. P/E Ratio (Price-to-Earnings)

    Tadawul: 4200 - Aldrees - PE vs. Peers PE
    Tadawul: 4200 - Aldrees - PE vs. Peers PE

    This ratio compares the company’s stock price to its earnings per share.

    Aldrees Petroleum’s stock is trading at a Price-to-Earnings (P/E) ratio of 34.1x, which is attractively valued compared to the peer average of 38.4x. This indicates the stock is relatively cheaper despite strong earnings performance.

    2. P/B Ratio (Price-to-Book)

    Tadawul: 4200 - Aldrees - PB vs. Peers PB
    Tadawul: 4200 - Aldrees - PB vs. Peers PB

    This ratio compares the company’s stock price to its book value.

    At a Price-to-Book (P/B) ratio of 8.6x, the stock appears expensive relative to peers, whose average stands at 6x. This may reflect premium market expectations or overvaluation based on asset book value.

    3. PEG Ratio (Price/Earnings to Growth)

    This ratio looks at the P/E ratio while also considering the company’s expected earnings growth.

    The PEG ratio stands at 1.34, well below the threshold of 2, suggesting the stock is undervalued in relation to its expected earnings growth. This makes it potentially attractive for growth-oriented investors.

  • Financial Health Check: Cash Flow Analysis and Debt Position

    1. Cash Flow from Operations

    Cash flow from operations is the money a company generates from its normal business activities.

    In FY24, cash flow from operations rose significantly to SAR 1,398 million, up from SAR 974 million in FY23. This robust growth indicates improved operational efficiency and stronger cash generation capacity.

    2. Debt Position

    Debt-to-Equity Ratio is a measure of how much debt a company uses to finance its assets relative to the value of shareholders’ equity.

    As of Q4 FY24, Aldrees reported total debt of SAR 4,222 million, resulting in a debt-to-equity ratio of 0.5. This moderate leverage reflects the company’s strong financial health and prudent capital structure, offering ample room for future expansion without excessive debt burden.

  • Major Shareholders and Institutional Interest

    Tadawul: 4200 - Aldrees - Top Shareholders
    Tadawul: 4200 - Aldrees - Top Shareholders

    • The Vanguard Group holds a 1.93% stake in the company, indicating strong institutional interest.
    • BlackRock owns 0.95%, further reinforcing confidence from global asset managers.
  • Conclusion

    Aldrees Petroleum and Transport Services Company stands out as a well-established player in Saudi Arabia’s fuel and logistics sectors. Backed by consistent revenue growth, expanding operational cash flows, and a solid financial position with low leverage, the company is well-positioned to benefit from the Kingdom’s ongoing infrastructure and transport development.

    With an attractive PEG ratio, strong institutional backing, and a bullish technical setup, Aldrees presents a compelling mid-to-long-term opportunity for investors seeking investment advice in Saudi stocks in the energy and transport sectors.

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