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2084

Governance: B

MIAHONA

Miahona Co.

15.00 SAR / Share

As of: May 28, 2026

141.8x P/E Ratio Trailing 12 Months

5.0x P/B Ratio Price to Book Value

0.7% Dividend Yield Annual Dividend / Share

2.41B SAR Market Cap Total Valuation

0.48 Beta Systematic Risk Index

2.7% Net Margin Net Profit / Revenue

The Story

Miahona is a critical infrastructure provider in Saudi Arabia's water utility sector, delivering steady long-term concession revenues balanced by high capital intensity and debt leverage.

Source: Q1 2026 (2026-05-10)

Value Creation +0.6% 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

0.7%

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

-5.7%

Payout Ratio Percent of net profits distributed as dividends

94.5%

Net Margin Net profit margin generated from total operational revenue

2.7%

ROIC Return on Invested Capital

6.6%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

141.8x

P/B Ratio Market capitalization compared to corporate book value

5.0x

EV / EBITDA Operating multiple reflecting core operational leverage

47.1x

EV / SALES Asset pricing multiple relative to total topline revenue

4.9x

Growth Story

Miahona has demonstrated robust top-line expansion, with revenue rising from 324.46 million SAR in FY 2023 to 385.09 million SAR in FY 2024, and peaking at 699.65 million SAR in FY 2025, before settling at a TTM revenue of 642.19 million SAR. This growth is primarily propelled by active construction phases across its portfolio of concession projects, including the Ras Tanura and Al Haer developments. However, the company's five-year average reinvestment rate is negative at -85.78%, resulting in a negative sustainable growth rate of -5.66%. This indicates that its growth is not self-funded through retained earnings but is instead highly dependent on securing external debt and new concession awards to expand its asset base.

Profitability Dynamics

The company's profitability profile reflects the steady but modest returns typical of regulated utilities. Miahona's five-year average ROIC of 6.60% slightly exceeds its WACC of 6.00%, yielding a positive value creation gap of 0.60%. TTM operating and profit margins stand at 3.75% and 2.65% respectively, representing a decline from prior years due to a higher mix of lower-margin construction revenue recognized during active project execution. Cash flow generation is heavily constrained by the capital-intensive nature of its contracts, with concession contract receivables rising to 807.95 million SAR by March 2026, contributing to a negative current working capital of -77.61 million SAR.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.48

Cost of Equity Minimum required rate of return demanded by shareholders

6.3%

WACC Weighted average cost of total debt and equity funding

6.0%

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

33.6%

Risk Factors

Miahona's risk profile is centered on its substantial leverage and liquidity management. The company carries 809.97 million SAR in total debt against a cash balance that decreased to 72.28 million SAR in early 2026. Its debt structure consists of project-specific Murabaha and senior debt facilities tied to floating rates (SAIBOR and SOFR), which are partially hedged via profit rate swaps. Operational risks include potential project delays and cost overruns, highlighted by 11.4 million SAR in outstanding EPC contractor claims, alongside broader regional geopolitical tensions that could impact its critical utility operations.

Governance Disclosures

Rating: B

We track 12 key governance and oversight matters for this company in our database.

Significance: 3/10 Info Asymmetry

Transactions and Balances with Associates

The Group engages in transactions with its associates, including providing project development and advisory services to Al Haer Environmental Service Company (SR 252,617 in 2026) and paying expenses on behalf of IWP2 (SR 150,705 in 2025). Outstanding due from associates totaled SR 630,579 as of 31 March 2026, while due to associates (Arana Water Works and Arana Renewable Water) totaled SR 75,000.

Mitigating Factors: Transactions are conducted in the ordinary course of activities at terms mutually agreed between the parties.

Significance: 5/10 Propping

Related-Party Transactions with Parent Company

During the prior period ended 31 March 2025, the parent company, Vision International Investment Company, paid expenses on behalf of the Company amounting to SR 20,453,938 and made lease payments of SR 958,942. As of 31 March 2026, the outstanding balance due to Vision Invest was SR 10,343.

Mitigating Factors: Transactions are conducted in the ordinary course of activities at terms mutually agreed between the parties.

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In-Depth Analysis