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2281

Governance: B

TANMIAH

Tanmiah Food Co.

60.10 SAR / Share

As of: May 28, 2026

29.3x P/E Ratio Trailing 12 Months

1.9x P/B Ratio Price to Book Value

3.7% Dividend Yield Annual Dividend / Share

1.20B SAR Market Cap Total Valuation

1.09 Beta Systematic Risk Index

1.6% Net Margin Net Profit / Revenue

The Story

Tanmiah is a vertically integrated food producer aggressively scaling its infrastructure to capture the GCC's growing protein demand through a mix of poultry production and restaurant operations.

Source: Q3 2025 (2025-12-25)

Value Creation +2.9% 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

3.7%

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

+203.3%

Payout Ratio Percent of net profits distributed as dividends

109.0%

Net Margin Net profit margin generated from total operational revenue

1.6%

ROIC Return on Invested Capital

11.3%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

29.3x

P/B Ratio Market capitalization compared to corporate book value

1.9x

EV / EBITDA Operating multiple reflecting core operational leverage

10.5x

EV / SALES Asset pricing multiple relative to total topline revenue

0.8x

Growth Story

Tanmiah has demonstrated a consistent upward trajectory in revenue, climbing from 1.73 billion SAR in fiscal 2022 to a TTM figure of 2.63 billion SAR. While the historical sustainable growth rate of 2.03% reflects a steady baseline, the company is currently in an aggressive expansion phase. This is evidenced by a TTM Capex of 300.2 million SAR and significant additions to capital work-in-progress for new feed mills, processing plant expansions, and hatchery developments. This heavy reinvestment strategy aims to exceed historical growth capacities by significantly increasing production volume and diversifying into the fast-food restaurant sector.

Profitability Dynamics

The company maintains a positive value creation profile with a five-year average ROIC of 11.25%, which comfortably exceeds its WACC of 8.91%, resulting in a value-adding gap of 2.34%. However, the business operates on thin margins characteristic of the food and agriculture sector, with a TTM operating margin of 5.02% and a net profit margin of 1.56%. Profitability is currently impacted by the high costs of scaling operations and the integration of new business segments, though the underlying ROIC suggests that the capital deployed into these assets is generating returns above the cost of financing.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.09

Cost of Equity Minimum required rate of return demanded by shareholders

9.1%

WACC Weighted average cost of total debt and equity funding

8.3%

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

85.0%

Risk Factors

Tanmiah's risk profile is defined by its high leverage and sensitivity to market fluctuations, reflected in a beta of 1.38. Total debt has reached 1.02 billion SAR, nearly matching its market capitalization of 1.13 billion SAR, as the company utilizes various Islamic Murabaha and Tawarooq facilities to fund its capital expenditures. These facilities carry finance costs ranging from 3.8% to 8.0%. Beyond financial leverage, the company faces inherent agricultural risks, including the management of biological assets and exposure to volatile global commodity prices for animal feed components.

Governance Disclosures

Rating: B

We track 4 key governance and oversight matters for this company in our database.

Significance: 3/10 Tunneling

Resource Transfer to Ultimate Parent

The Group made payments totaling SR 381,731 on behalf of its ultimate parent company during the nine-month period ended September 30, 2025.

Significance: 5/10 Info Asymmetry

Commercial Dependency and Fees with Associate

The Group recorded SR 8.1 million in sales to its associate, Supreme Foods Processing Company (SFPC), and charged the same entity SR 9.0 million in management fees during the nine-month period.

Mitigating Factors: The Group maintains a 40% ownership in the associate and has the right to appoint two out of five directors.

For more, click here to view the full governance profile →

In-Depth Analysis