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2250

Governance: C

SIIG

Saudi Industrial Investment Group

13.14 SAR / Share

As of: Mar 26, 2026

155.4x P/E Ratio Trailing 12 Months

1.0x P/B Ratio Price to Book Value

76.1% Dividend Yield Annual Dividend / Share

8.93B SAR Market Cap Total Valuation

1.02 Beta Systematic Risk Index

288.0% Net Margin Net Profit / Revenue

The Story

SIIG is a debt-free strategic holding company that channels the Kingdom's petrochemical wealth into a diversified portfolio of polymers and aromatics, currently prioritizing capital efficiency over aggressive expansion.

Source: Q3 2026 (2026-04-13)

Value Creation -1.8% 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

76.1%

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

-4.5%

Payout Ratio Percent of net profits distributed as dividends

11824.3%

Net Margin Net profit margin generated from total operational revenue

288.0%

ROIC Return on Invested Capital

7.0%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

155.4x

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

432.1x

Growth Story

SIIG's growth trajectory is currently in a harvesting phase, characterized by a negative 5-year average reinvestment rate of -64.19%. This indicates that the company is returning significantly more capital to shareholders than it is retaining for new projects, leading to a negative Sustainable Growth Rate of -4.48%. Revenue has faced substantial cyclical pressure, declining from 494.1 million SAR in fiscal 2022 to a TTM level of 19.9 million SAR at the parent level. While the core petrochemical segments have matured, the company is planting seeds for future capacity through the newly established Bioprotein Company, which is expected to complete its plant by the second half of 2028, representing a long-term shift toward non-traditional feed additives.

Profitability Dynamics

The company is navigating a period of value compression, with a 5-year average ROIC of 6.98% falling short of its 8.77% WACC, resulting in a negative value creation gap of -1.79%. This underperformance is largely driven by external headwinds at the joint venture level, where declining selling prices and rising feedstock costs have squeezed margins. Despite an operating margin of -2.37% at the parent level, SIIG remains a potent cash generator through its subsidiaries, evidenced by its ability to fund a 754.8 million SAR capital return and a 200.1 million SAR share buyback in 2025. The company maintains a robust cash reserve of 308.0 million SAR, ensuring it can sustain operations even as its joint ventures face temporary budgetary shortfalls.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.02

Cost of Equity Minimum required rate of return demanded by shareholders

8.8%

WACC Weighted average cost of total debt and equity funding

8.8%

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

0.0%

Risk Factors

SIIG's risk profile is defined by its zero-debt status at the parent level, which provides a significant buffer against rising interest rates. However, its relevered beta of 1.02 reflects a high sensitivity to global commodity cycles. Business-specific risks are concentrated in the liquidity of its joint ventures; for instance, JCP's current liabilities exceeded its current assets by 193.5 million SAR as of September 30, 2025, primarily due to capital reduction obligations. Furthermore, the carrying value of the SPCo investment is highly sensitive to valuation assumptions, where a mere 0.5% increase in the discount rate could necessitate an impairment. Regulatory risks also persist, as seen in the 20.8 million SAR final zakat assessment recently settled for the Petrochem subsidiary.

Governance Disclosures

Rating: C

We track 5 key governance and oversight matters for this company in our database.

Significance: 8/10 Info Asymmetry

Impairment Indicators for Petrochemical Joint Ventures

Management identified impairment indicators for its investments in SCP, JCP, and SPCo because their financial performance was lower than approved budgets. The total carrying value of these joint venture investments is SAR 7.94 billion.

Mitigating Factors: An impairment assessment was performed as of the reporting date and no impairment loss was identified.

Significance: 4/10 Info Asymmetry

Joint Venture Formation with Associate Subsidiary

SIIG established Bioprotein Company, a new subsidiary in which it holds an 80% stake. The remaining 20% is held by Unibio KSA Aps, which is a wholly owned subsidiary of the Group's associate company, Unibio.

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In-Depth Analysis