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2288

Governance: A

NOFOTH

Nofoth Food Products Co.

7.38 SAR / Share

As of: May 28, 2026

13.8x P/E Ratio Trailing 12 Months

3.6x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

701.78M SAR Market Cap Total Valuation

0.74 Beta Systematic Risk Index

12.0% Net Margin Net Profit / Revenue

The Story

Nofoth Food Products Company combines traditional bakery and confectionery appeal with a highly efficient, capital-disciplined operating model that has successfully transitioned to the Saudi Main Market.

Source: Q1 2026 (2026-05-12)

Value Creation +27.1% 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

+11.1%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

12.0%

ROIC Return on Invested Capital

34.0%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

13.8x

P/B Ratio Market capitalization compared to corporate book value

3.6x

EV / EBITDA Operating multiple reflecting core operational leverage

12.2x

EV / SALES Asset pricing multiple relative to total topline revenue

1.9x

Growth Story

Nofoth's growth trajectory resembles an expanding recipe, where systematic reinvestment drives steady volume expansion. Revenue has climbed consistently from 308.19 million SAR in FY 2023 to 365.06 million SAR in FY 2024, and reached 429.60 million SAR in FY 2025, primarily anchored by the sales of goods. This expansion is supported by a robust five-year average reinvestment rate of 32.74%. When combined with an exceptional five-year average return on invested capital (ROIC) of 34.05%, Nofoth exhibits a sustainable growth rate of 11.15%. This indicates a strong internal capacity to fund its ongoing retail and manufacturing expansions—such as the development of its central factory and main residence projects—without relying excessively on external dilutive capital.

Profitability Dynamics

The company operates in the sweet spot of efficiency, extracting substantial value from its capital base. Nofoth's TTM operating margin stands at 12.28%, yielding a NOPAT of 50.83 million SAR. The true hallmark of its profitability is the massive spread between its five-year average ROIC of 34.05% and its estimated WACC of 6.95%, creating a value-creation gap of 27.10%. This high return profile is partially aided by operational efficiencies, including a recent extension of the estimated useful lives of its property and equipment, which lowered depreciation charges. Furthermore, the company maintains highly liquid reserves, including 49.65 million SAR in the Artal Murabaha Fund and 40.56 million SAR in Al Rajhi Bank Sukuks, ensuring that its capital is actively generating returns even before being deployed into physical retail expansion.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.74

Cost of Equity Minimum required rate of return demanded by shareholders

7.5%

WACC Weighted average cost of total debt and equity funding

6.9%

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

14.4%

Risk Factors

Managing Nofoth's expansion requires balancing the rising dough of operational commitments against its financial obligations. The company carries a latest total debt of 101.39 million SAR, which includes significant lease liabilities of 50.69 million SAR associated with its leased branches and buildings. While its relevered beta of 0.74 reflects a relatively defensive profile within the consumer staples sector, Nofoth faces localized risks. These include geopolitical developments in the GCC region and credit risks associated with its trade receivables, which saw an increase in the provision for expected credit losses to 892,579 SAR in early 2026. However, with a low cost of debt of 3.05% after-tax and a comfortable cash balance of 17.22 million SAR, the company's liquidity framework remains robust enough to meet its short-term contractual obligations.

Governance Disclosures

Rating: A

We track 11 key governance and oversight matters for this company in our database.

Significance: 5/10 Entrenchment

Treasury Shares Held for Employee Stock Program

The Company holds 1,239,829 treasury shares representing approximately 1.29% of the total issued share capital, with an aggregate carrying amount of SAR 11,467,208 as of 31 March 2026. These shares were purchased pursuant to Extraordinary General Assembly approval to be allocated under an employee stock program, but no allocation has been announced yet. The shares do not carry voting rights or dividend entitlements.

Mitigating Factors: The purchase was approved by the Extraordinary General Assembly, and the shares are held for a maximum of five years or until allocated, carrying no voting or dividend rights in the interim.

Significance: 5/10 Tunneling

Outstanding Dues to Directors

The Company has outstanding balances due to executive and non-executive directors amounting to SAR 4,714,560 as of 31 March 2026, down from SAR 5,718,029 as of 31 December 2025.

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

In-Depth Analysis