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1832

Governance: A

SADR

Sadr Logistics Co.

2.63 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

2.8x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

460.25M SAR Market Cap Total Valuation

0.83 Beta Systematic Risk Index

-0.4% Net Margin Net Profit / Revenue

The Story

Sadr Logistics Services Company is navigating a capital-intensive transition from traditional wood manufacturing to modern logistics infrastructure, marked by rising revenues and operating profits alongside persistent net losses.

Source: Q1 2026 (2026-05-14)

Value Creation -6.4% 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

+0.1%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

-0.4%

ROIC Return on Invested Capital

1.0%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

2.8x

EV / EBITDA Operating multiple reflecting core operational leverage

15.2x

EV / SALES Asset pricing multiple relative to total topline revenue

3.5x

Growth Story

Sadr's revenue has shown a steady upward trajectory, growing from 104.04 million SAR in FY 2023 to 111.84 million SAR in FY 2024, 143.42 million SAR in FY 2025, and reaching 151.14 million SAR in the TTM period. This top-line expansion is driven by its core wood and steel manufacturing activities alongside its emerging logistics segment, such as the Sadr Park project and a new cold storage warehouse. However, the company's historical 5-year average return on invested capital (ROIC) stands at a low 0.96%, which, combined with a 5-year average reinvestment rate of 10.53%, yields a very modest sustainable growth rate of 0.10%. This indicates that while the company is actively deploying capital—evidenced by a substantial TTM capital expenditure of 68.08 million SAR—its capacity to generate organic, self-sustaining growth from historical operations remains constrained, requiring external financing to fund its ambitious logistics expansion.

Profitability Dynamics

Sadr's profitability profile reveals a stark contrast between improving operating performance and bottom-line pressures. Operating income has rebounded significantly from a loss of 2.62 million SAR in FY 2023 to a positive 11.01 million SAR in FY 2025, and further to 14.72 million SAR in the TTM period, representing an operating margin of 9.74%. Despite this operational turnaround, net income remains negative, registering a loss of 0.56 million SAR in the TTM period, weighed down by financing costs and accumulated losses of 8.98 million SAR. The company's 5-year average ROIC of 0.96% falls far short of its WACC of 7.36%, resulting in a negative value creation gap of -6.39%. This persistent gap highlights that Sadr is currently destroying economic value as its heavy capital investments, including the 128.47 million SAR net book value of investment properties like Sadr Park, have yet to mature into high-yielding cash flows.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.83

Cost of Equity Minimum required rate of return demanded by shareholders

7.9%

WACC Weighted average cost of total debt and equity funding

7.4%

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

18.0%

Risk Factors

Sadr's risk profile is characterized by its high capital intensity and reliance on debt to fund its strategic pivot. The company carries 82.85 million SAR in total debt against a cash balance of 8.48 million SAR, exposing it to liquidity and interest rate risks. To mitigate financing costs, Sadr secured a subsidized 74.59 million SAR loan from the Agricultural Development Fund for its cold storage project, which is treated as a government grant. However, operational risks are evident in its balance sheet, including a substantial provision for expected credit losses on trade receivables of 12.77 million SAR and slow-moving inventory provisions of 0.93 million SAR. Additionally, the company faces capital commitments of 2.52 million SAR for ERP system development and must manage the operational transition of closing its expired Dammam branch while ramping up the newly leased Sadr Park project.

Governance Disclosures

Rating: A

We track 9 key governance and oversight matters for this company in our database.

Significance: 3/10 Tunneling

Board and Committee Remuneration Payable

The company disclosed an outstanding balance of SAR 883,925 due to related parties as of March 31, 2026, representing remuneration for Board and committee members. Related party transactions are noted to mainly consist of salaries and allowances for Board members, committee members, and senior management.

Significance: 5/10 Info Asymmetry

Revenue Concentration with Major Customers

The company reports significant revenue concentration, with one customer contributing 13.6% of total revenue (SAR 19,551,841). In the Logistics segment, three customers account for 89.59% of segment revenue, while two customers account for 47.92% of the Wood segment revenue.

Mitigating Factors: The company provides segment-wise disaggregation of these concentrations to the Chief Operating Decision-maker for performance assessment.

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In-Depth Analysis