Al Yamamah Steel Industries Co (SAU:1304) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Al Yamamah Steel Industries Co Cash Conversion Cycle Related Terms
Al Yamamah Steel Industries Co Cash Conversion Cycle Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Al Yamamah Steel Industries Co Cash Conversion Cycle Chart
SAU:1304 vs NUE, STLD, RS: Cash Conversion Cycle Comparison
For the Steel subindustry, Al Yamamah Steel Industries Co's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Al Yamamah Steel Industries Co Cash Conversion Cycle vs Steel Industry
For the Steel industry and Basic Materials sector, Al Yamamah Steel Industries Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Al Yamamah Steel Industries Co's Cash Conversion Cycle falls into.
Al Yamamah Steel Industries Co Cash Conversion Cycle Calculation
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Al Yamamah Steel Industries Co (SAU:1304) has a Cash Conversion Cycle of 249.59 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Al Yamamah Steel Industries Co and its competitors.
Is Al Yamamah Steel Industries Co's Cash Conversion Cycle too high?
Al Yamamah Steel Industries Co's current Cash Conversion Cycle is 249.59. The Steel industry median Cash Conversion Cycle is 95.23. Al Yamamah Steel Industries Co's value of 249.59 is 162.1% above this industry median. Overall, Al Yamamah Steel Industries Co has a GF Score™ of 55/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Al Yamamah Steel Industries Co's Cash Conversion Cycle compare to NUE and STLD?
Al Yamamah Steel Industries Co's Cash Conversion Cycle of 249.59 can be compared against companies in the Steel industry. The industry median Cash Conversion Cycle is 95.23. Al Yamamah Steel Industries Co's value of 249.59 is 162.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Steel company?
The median Cash Conversion Cycle among Steel companies is 95.23, based on 610 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Al Yamamah Steel Industries Co's current Cash Conversion Cycle of 249.59 is 162.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Al Yamamah Steel Industries Co and its competitors. For the Steel industry, the median Cash Conversion Cycle is 95.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al Yamamah Steel Industries Co's current Cash Conversion Cycle is 249.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Yamamah Steel Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Al Yamamah Steel Industries Co (SAU:1304) is currently considered Modestly Overvalued. The stock's GF Value™ is ﷼35.88, compared to a current price of ﷼41.70 — trading 16.2% above its estimated fair value. The current Cash Conversion Cycle is 249.59 and 162.1% above the Steel industry median of 95.23. Al Yamamah Steel Industries Co's overall GF Score™ is 55/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Al Yamamah Steel Industries Co (SAU:1304), the current Cash Conversion Cycle is 249.59 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Al Yamamah Steel Industries Co (SAU:1304) Overvalued in 2026?
Based on GuruFocus' analysis, Al Yamamah Steel Industries Co stock appears to be overvalued.
The current stock price of ﷼41.70 is trading 16.2% above its estimated GF Value™ of ﷼35.88.
GuruFocus considers Al Yamamah Steel Industries Co to be Modestly Overvalued.
Key valuation signals for SAU:1304:
Cash Conversion Cycle: 249.59
GF Value™: ﷼35.88 vs. price of ﷼41.70 (16.2% above fair value)
No single metric tells the full story. See the SAU:1304 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al Yamamah Steel Industries Co Business Description
Al Yamamah Steel Industries Co is a manufacturer of tubes, pipes and hollow shapes from iron, metal structures and their parts for bridges and towers, poles and their parts, including poles, lighting cabins, traffic lights, etc. and installation of prefabricated steel structures for industrial facilities. The company produces and sells steel welded tubes, steel sheets, steel reinforcement bars, and three-dimension space structures. The company's operating segments include Construction, Electricity and Renewable Energy. It generates maximum revenue from the Construction segment.The company has production facilities at Jeddah, Dammam and Yanbu.
55GF Score
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