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1210

Governance: B

BCI

Basic Chemical Industries Co.

24.38 SAR / Share

As of: Mar 26, 2026

0.0x P/E Ratio Trailing 12 Months

0.0x P/B Ratio Price to Book Value

4.1% Dividend Yield Annual Dividend / Share

683 SAR Market Cap Total Valuation

385601.44 Beta Systematic Risk Index

5.6% Net Margin Net Profit / Revenue

The Story

BCI is a mature chemical manufacturer currently navigating a capital-intensive expansion phase while managing a return profile that sits slightly below its cost of capital.

Source: Annual 2025 (2026-04-12)

Value Creation -1.9% Excess Return on Capital (Spread between ROIC/ROE and Cost of Capital)

Cash Flow Payback — Estimated years of operating cash flows required to cover Enterprise Value

Performance & Distributions

Dividend Yield Trailing annual dividends paid relative to share price

4.1%

Sustainable Growth Rate Rate at which company can grow internally using reinvested profits

-1.7%

Payout Ratio Percent of net profits distributed as dividends

0.0%

Net Margin Net profit margin generated from total operational revenue

5.6%

ROIC Return on Invested Capital

6.1%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

0.0x

P/B Ratio Market capitalization compared to corporate book value

0.0x

EV / EBITDA Operating multiple reflecting core operational leverage

2.6x

EV / SALES Asset pricing multiple relative to total topline revenue

0.4x

Growth Story

BCI's growth trajectory is currently characterized by consolidation as it prepares for new capacity. Revenue has shown slight volatility, moving from 741.1 million SAR in fiscal 2023 to 729.9 million SAR in the TTM period. The company's sustainable growth rate is currently calculated at -1.71%, a reflection of a negative five-year average reinvestment rate of -27.83%. This suggests that, historically, capital has been returned to shareholders or used to pay down obligations at a higher rate than it has been retained for internal growth. However, this historical trend is juxtaposed against significant strategic initiatives, such as the Jubail project for chlorine derivatives, which represents a major capital commitment aimed at expanding production capacity by 70,000 tons.

Profitability Dynamics

The profitability narrative reveals a value-creation challenge, with a five-year average Return on Invested Capital (ROIC) of 6.14% compared to a Weighted Average Cost of Capital (WACC) of 8.06%. This negative gap of 1.92% indicates that the company's historical returns have not fully covered its cost of funding. Despite this, the company maintains healthy operational efficiency, posting a TTM operating margin of 9.02% and a net profit margin of 5.61%. Net income for the TTM period stood at 40.9 million SAR, demonstrating consistent profitability at the bottom line even as the company manages the high depreciation and overhead costs associated with its manufacturing base.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

385601.44

Cost of Equity Minimum required rate of return demanded by shareholders

1734864.3%

WACC Weighted average cost of total debt and equity funding

8.1%

Debt-to-Equity Ratio Proportion of corporate funding financed by debt creditors

50104507.4%

Risk Factors

BCI’s risk profile is anchored in its industrial leverage and the execution of large-scale projects. The company carries a total debt of 342.0 million SAR against a cash position of 71.3 million SAR, reflecting a reliance on external financing to support its heavy industrial infrastructure. Beyond financial leverage, the business faces inherent risks from market volatility and currency fluctuations. Footnotes also indicate significant capital commitments, including contracted expenditure for the Jubail project and bank guarantees totaling 12.1 million SAR. The complexity of managing consolidated subsidiaries like HAPC and NAL further adds to the operational risk, as BCI must maintain control over diverse chemical processing and marketing activities.

Governance Disclosures

Rating: B

We track 5 key governance and oversight matters for this company in our database.

Significance: 2/10 Info Asymmetry

Foreign Shareholding in Subsidiaries

The Group's corporate structure includes subsidiaries with foreign shareholders. This results in a dual tax/zakat obligation where the Group must account for income tax specifically on the share of adjusted profit attributable to these foreign partners, while the remainder is subject to Zakat.

Mitigating Factors: The tax treatment is disclosed as being in accordance with the regulations of the General Authority of Zakat and Tax (GAZT).

Significance: 3/10 Info Asymmetry

Inter-segment Transactions and Arm's Length Pricing

The Group conducts business activities between its various operating segments. The financial statements disclose that these internal sales are executed using arm's length pricing and are subsequently eliminated during the consolidation process.

Mitigating Factors: Transactions are explicitly stated to be carried out at arm's length.

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In-Depth Analysis