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2210

Governance: D

NAMA CHEMICALS

Nama Chemicals Co.

19.95 SAR / Share

As of: Mar 26, 2026

6.0x P/E Ratio Trailing 12 Months

1.7x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

469.22M SAR Market Cap Total Valuation

2.26 Beta Systematic Risk Index

33.0% Net Margin Net Profit / Revenue

The Story

NAMA Chemicals is navigating a critical liquidity crisis and operational restructuring, currently sustained by accounting adjustments and a pending strategic capital injection.

Source: Q3 2025 (2025-11-17)

Value Creation -15.5% 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

+10.5%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

33.0%

ROIC Return on Invested Capital

-6.1%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

6.0x

P/B Ratio Market capitalization compared to corporate book value

1.7x

EV / EBITDA Operating multiple reflecting core operational leverage

—

EV / SALES Asset pricing multiple relative to total topline revenue

4.5x

Growth Story

Revenue has experienced a significant contraction, declining from 577.2 million SAR in fiscal 2022 to 235.8 million SAR on a TTM basis. This downward trajectory reflects substantial operational challenges and a shrinking market footprint. While the mathematical sustainable growth rate is 10.5%, the company's five-year average ROIC of negative 6.1% indicates that it is currently unable to fund growth through internal operations. Future expansion is entirely dependent on a planned 200 million SAR equity injection from FAAD AlOula, intended to stabilize the JANA subsidiary and facilitate revenue diversification and cost optimization.

Profitability Dynamics

The company is currently in a state of significant value destruction, with a negative 15% gap between its ROIC and its 8.9% WACC. Operating performance is severely strained, as evidenced by a TTM operating margin of negative 85.2% and an EBIT loss of 200.8 million SAR. Although TTM net income is reported at 77.9 million SAR, this figure is skewed by non-cash accounting events, specifically the reversal of 208 million SAR in impairment losses on property, plant, and equipment. Realized cash flow remains negative, with operating activities resulting in a 6 million SAR outflow for the nine months ended September 30, 2025.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

2.26

Cost of Equity Minimum required rate of return demanded by shareholders

14.3%

WACC Weighted average cost of total debt and equity funding

9.4%

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

126.4%

Risk Factors

NAMA faces acute financial risks, highlighted by a material uncertainty regarding its ability to continue as a going concern. The company’s current liabilities exceed its current assets by 671 million SAR, and it holds only 0.5 million SAR in cash against 593.2 million SAR in total debt. The risk profile is further elevated by defaults on SIDF loan installments and breaches of financial covenants, which have forced the reclassification of long-term debt into current liabilities. A high re-levered beta of 1.94 reflects this extreme sensitivity to both internal financial distress and external market volatility.

Governance Disclosures

Rating: D

We track 3 key governance and oversight matters for this company in our database.

Significance: 7/10 Info Asymmetry

Valuation Estimates Linked to Future Capital Injection

Management reversed a previously recognized impairment loss of SR 208 million based on a valuation that assumes the successful completion of a SR 200 million equity injection. This reversal significantly impacts the carrying value of property, plant, and equipment.

Mitigating Factors: The valuation was performed by a TAQEEM approved external valuer using the Depreciated Replacement Cost method.

Significance: 9/10 Propping

Proposed Equity Injection by FAAD AlOula

The Group entered into a binding agreement with FAAD AlOula Industrial Company for a SR 200 million capital injection in exchange for a 40% stake in the subsidiary JANA. The deadline for this cash injection has been extended multiple times, with the current expected date being February 18, 2026.

Mitigating Factors: The transaction received conditional approval from the Saudi Industrial Development Fund (SIDF) Management Credit Committee.

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In-Depth Analysis