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2120

Governance: B

SAIC

Saudi Advanced Industries Co.

16.74 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

1.0x P/B Ratio Price to Book Value

6.0% Dividend Yield Annual Dividend / Share

987.66M SAR Market Cap Total Valuation

0.84 Beta Systematic Risk Index

— Net Margin Net Profit / Revenue

The Story

SAIC operates as a strategic investment holding company whose financial performance is tightly bound to the valuation swings of its public and private equity portfolios in the Kingdom.

Source: Q1 2026 (2026-05-19)

Value Creation +3.8% 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

6.0%

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

+0.2%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

—

ROIC Return on Invested Capital

11.5%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

1.0x

EV / EBITDA Operating multiple reflecting core operational leverage

—

EV / SALES Asset pricing multiple relative to total topline revenue

—

Growth Story

SAIC's top-line growth is not driven by traditional product sales but by the volatile tides of investment valuations. Revenue surged from 180.2 million SAR in fiscal 2023 to 342.4 million SAR in fiscal 2024, before plunging to negative 123.5 million SAR in fiscal 2025 and negative 123.4 million SAR on a TTM basis. This dramatic swing is primarily due to unrealized mark-to-market losses on its financial instruments held through profit or loss, which suffered a 187.3 million SAR write-down in fiscal 2025. Because the company operates as an investment holding entity, its long-term growth capacity is constrained by a low 5-year average reinvestment rate of 1.68%. Combined with a 5-year average ROIC of 11.50%, SAIC's sustainable growth rate stands at a modest 0.19%, indicating that its expansion is heavily reliant on external market appreciation and strategic asset reallocation rather than organic compounding.

Profitability Dynamics

The company's profitability profile is highly polarized, reflecting the accounting treatment of its investment holdings. In years of market strength like fiscal 2024, SAIC achieved an operating income of 315.6 million SAR and net income of 295.1 million SAR. However, the TTM period shows an operating loss of 143.8 million SAR and a net loss of 160.3 million SAR. Despite these short-term fluctuations, SAIC has historically demonstrated solid value creation, with a 5-year average ROIC of 11.50% comfortably exceeding its WACC of 7.68%, yielding a positive value-creation gap of 3.82%. This indicates that over a full market cycle, the company's capital allocation decisions generate economic value. Cash generation remains lumpy, with capital expenditures being minimal at a TTM Capex of 418,526 SAR as the business model requires little physical infrastructure, focusing instead on liquid and illiquid financial assets.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.84

Cost of Equity Minimum required rate of return demanded by shareholders

8.0%

WACC Weighted average cost of total debt and equity funding

7.7%

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

18.1%

Risk Factors

SAIC's risk profile is defined by its investment concentration and its use of leverage to amplify returns. The company carries 178.4 million SAR in total debt against 23.8 million SAR in cash, resulting in a net debt position. This debt is primarily composed of short-term, Sharia-compliant credit facilities amounting to 163.0 million SAR as of March 31, 2026, which are secured by its investment portfolios. This structure exposes SAIC to margin call risks if the market value of its pledged portfolios declines significantly. Furthermore, the company's beta of 0.84 reflects a moderate correlation with the broader market, but its underlying assets—such as its 14.91% stake in Al-Obeikan Glass and its venture capital fund investments—carry specific operational and liquidity risks. Geopolitical uncertainties in the GCC region add another layer of macro risk to its concentrated regional portfolio.

Governance Disclosures

Rating: B

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

Significance: 5/10 Entrenchment

Significant Influence and Board Representation in Associate

The Group holds a total ownership interest of 14.91% in Al-Obeikan Glass Company (comprising 11.875% held directly by the parent company and 3.04% held by its subsidiary). Although this ownership is below the typical 20% threshold for significant influence, the Group continues to exercise significant influence through its representation on the Board of Directors and participation in key financial and operating decisions.

Mitigating Factors: The investment is accounted for using the equity method in accordance with accounting standards.

Significance: 3/10 Tunneling

Remuneration and Allowances of Board and Executive Management

The Group disclosed payments to key management personnel for the three-month period ended March 31, 2026. Board of Directors' allowances and remunerations amounted to SAR 392,250, and salaries and short-term benefits for executive management amounted to SAR 1,154,978, representing a total of SAR 1,547,228.

Mitigating Factors: The processes with the relevant parties and their terms are approved by the Group’s companies.

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In-Depth Analysis