← Market Overview

1820

Governance: D

BAAN

BAAN Holding Group Co.

1.89 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

11.8x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

595.35M SAR Market Cap Total Valuation

2.23 Beta Systematic Risk Index

-21.2% Net Margin Net Profit / Revenue

The Story

BAAN Holding Group Company is undergoing a profound operational and capital restructuring to reverse a multi-year trend of declining revenues, operating losses, and severe working capital deficits.

Source: Q1 2026 (2026-05-14)

Value Creation -9.6% 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

-0.0%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

-21.2%

ROIC Return on Invested Capital

-0.7%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

11.8x

EV / EBITDA Operating multiple reflecting core operational leverage

—

EV / SALES Asset pricing multiple relative to total topline revenue

2.7x

Growth Story

BAAN's revenue has experienced a steady downward trajectory, contracting from 742.14 million SAR in FY 2023 to 678.70 million SAR in FY 2024, and further to 649.04 million SAR in FY 2025, with TTM revenue standing at 641.71 million SAR. This top-line contraction reflects a deliberate rationalization of underperforming projects. The company's historical 5-year average reinvestment rate is low at 2.78%, and when coupled with a negative 5-year average ROIC of -0.68%, it yields a negative sustainable growth rate of -0.02%, indicating that organic growth capacity is severely constrained. To counter this, BAAN is pivoting toward inorganic growth, having secured shareholder approval in April 2026 for a capital increase to acquire income-generating hotel and real estate assets, aiming to rebuild its revenue base.

Profitability Dynamics

The company's profitability profile highlights significant value destruction, with a TTM operating margin of -21.18% and a net profit margin of -21.20%, culminating in a TTM net loss of 136.02 million SAR. BAAN's 5-year average ROIC of -0.68% falls far short of its WACC of 8.88%, creating a negative value creation gap of -9.56%. Although the company reported a net profit of 49.09 million SAR in Q1 2026, this was heavily supported by a one-off 70 million SAR gain from disposing of its 48.5% stake in Touresco, rather than core operational turnaround. Core operations remain cash-consumptive, as evidenced by negative operating cash flows of 10.5 million SAR in Q1 2026 and a TTM EBIT of -135.88 million SAR, underscoring the urgent need for the ongoing operational restructuring.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

2.23

Cost of Equity Minimum required rate of return demanded by shareholders

14.2%

WACC Weighted average cost of total debt and equity funding

8.9%

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

200.9%

Risk Factors

BAAN faces acute liquidity and leverage risks, characterized by a massive working capital deficit of -121.69 million SAR and a high beta of 2.23, reflecting extreme market volatility. The company's latest total debt stands at 1.20 billion SAR against a cash balance of just 43.98 million SAR, creating a highly leveraged capital structure. This leverage is compounded by going concern uncertainties, as accumulated losses reached 263.6 million SAR by March 2026. The company's survival is highly dependent on its ability to roll over revolving credit facilities, maintain bank covenants, and successfully execute its capital restructuring. Furthermore, substantial related-party transactions, including 15.04 million SAR in rent payments to its ultimate parent in Q1 2026, add operational rigidity to its cost structure.

Governance Disclosures

Rating: D

We track 13 key governance and oversight matters for this company in our database.

Significance: 3/10 Propping

Waiver of Non-Controlling Interest without Consideration

During 2025, non-controlling interests in Osoul Al-Mazaya Hospitality Company waived their 15% share to the Group for no consideration, increasing the Group's ownership to 100% and resulting in a SAR 1.9 million adjustment recognized in retained earnings.

Significance: 4/10 Tunneling

Impairment of Related Party Receivables

The Group has outstanding receivables from related parties under common control and joint ventures totaling SAR 8.98 million as of March 31, 2026, against which an impairment provision of SAR 2.05 million has been recorded.

For more, click here to view the full governance profile →

In-Depth Analysis