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1213

Governance: A

NASEEJ

Naseej International Trading Co.

22.26 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

57.5x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

242.57M SAR Market Cap Total Valuation

1.11 Beta Systematic Risk Index

-71.4% Net Margin Net Profit / Revenue

The Story

Naseej is navigating a severe operational downturn characterized by shrinking revenues, persistent net losses, and capital restructuring efforts to address accumulated losses that exceed half of its share capital.

Source: Q1 2026 (2026-05-06)

Value Creation -16.5% 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

—

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

-4.4%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

-71.4%

ROIC Return on Invested Capital

-9.1%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

57.5x

EV / EBITDA Operating multiple reflecting core operational leverage

—

EV / SALES Asset pricing multiple relative to total topline revenue

8.5x

Growth Story

Under the metaphor of a shrinking canvas, Naseej's revenue trajectory has experienced a sharp contraction, falling from 260.52 million SAR in FY 2023 to 196.76 million SAR in FY 2024, and further down to 72.02 million SAR in FY 2025, with TTM revenue standing at 50.62 million SAR. This rapid decline reflects a severe contraction in business volume. The company's five-year average reinvestment rate of 48.91% is paired with a deeply negative five-year average ROIC of -9.07%, yielding a negative sustainable growth rate of -4.44%. This indicates that historical reinvestments have failed to generate positive growth capacity, and the business is currently shrinking. To counter this, management has announced strategic plans to restructure its asset portfolio, including the potential disposal of non-operational assets, and is pursuing a capital increase of 163.46 million SAR through a rights issue to raise solvency and refocus on core activities.

Profitability Dynamics

Under the metaphor of an unraveled spool of thread, the company's profitability profile is severely strained, with TTM operating margins at -46.11% and profit margins at -71.44%, driven by operating losses of -23.34 million SAR and net losses of -36.16 million SAR. This represents a continuation of the negative trend from FY 2025 (operating income of -20.46 million SAR) and FY 2024 (operating income of -22.49 million SAR). The company's five-year average ROIC of -9.07% stands in stark contrast to its WACC of 7.43%, creating a negative value creation gap of -16.51%. Segment data for the three months ended March 31, 2026, highlights that both the flooring and non-flooring segments are operating at a gross loss, with flooring generating a total loss of -3.17 million SAR on sales of 4.11 million SAR. Although management reports a minor positive operating cash flow of 0.88 million SAR at the interim reporting date, the overall business remains highly value-destructive.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.11

Cost of Equity Minimum required rate of return demanded by shareholders

9.2%

WACC Weighted average cost of total debt and equity funding

7.4%

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

78.2%

Risk Factors

Under the metaphor of a tightrope walk over a financial abyss, Naseej faces substantial solvency and liquidity risks, as highlighted by its accumulated losses of 104.76 million SAR as of March 31, 2026, which exceed 50% of its share capital. Furthermore, current liabilities exceed current assets by 41.71 million SAR, casting significant doubt on the company's ability to continue as a going concern. The company's capital structure is heavily burdened by 189.69 million SAR in total debt against a cash balance of only 1.63 million SAR, leading to an enterprise value of 430.63 million SAR. Adding to these balance sheet pressures, Naseej was in non-compliance with certain covenants on its outstanding loans with the Saudi National Bank during the period ended March 31, 2026, and is currently negotiating waivers. With a relevered beta of 1.11, the stock exhibits above-average market sensitivity, reflecting the high-risk nature of its ongoing restructuring.

Governance Disclosures

Rating: A

We track 7 key governance and oversight matters for this company in our database.

Significance: 3/10 Tunneling

Executive Management and Board Remuneration

During the three-month period ended March 31, 2026, the Group paid management benefits of SAR 804 thousand (up from SAR 761 thousand in the prior period) and Board of Directors (BOD) and executive committee remuneration of SAR 300 thousand (unchanged from the prior period).

Significance: 4/10 Info Asymmetry

Related-Party Balances and Transactions with Affiliates

The Group has an outstanding balance due to its affiliate, Saudi Company for Manufacturing Carpets Materials, totaling SAR 4.08 million (SAR 4,076 thousand) as of March 31, 2026, which remains unchanged from December 31, 2025. No purchases were made from related parties during the three-month period ended March 31, 2026, compared to SAR 635 thousand in the prior year.

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In-Depth Analysis