SAUDI KAYAN

Saudi Kayan Petrochemical Co.

5.13 SAR / Share

As of: Mar 26, 2026

— P/E Ratio Trailing 12 Months

0.8x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

7.70B SAR Market Cap Total Valuation

2.24 Beta Systematic Risk Index

-27.1% Net Margin Net Profit / Revenue

The Story

Saudi Kayan is currently navigating a period of significant financial distress, characterized by deepening operating losses and a capital structure that is consuming rather than creating value.

Source: Annual 2025 (2026-03-17)

Value Creation -14.3% 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

0.0%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

-27.1%

ROIC Return on Invested Capital

-3.9%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

0.8x

EV / EBITDA Operating multiple reflecting core operational leverage

182.2x

EV / SALES Asset pricing multiple relative to total topline revenue

2.0x

Growth Story

The company's revenue trajectory has faced headwinds, declining from 8.73 billion SAR in fiscal 2024 to 8.46 billion SAR in fiscal 2025. This contraction is primarily driven by lower netback prices for its products and increased feedstock costs. From a fundamental perspective, the company's capacity for self-funded growth is currently stalled; with a five-year average ROIC of -3.89% and a reinvestment rate that has effectively hit a floor, the sustainable growth rate remains negative. Management is pivoting toward a 2026 recovery thesis, anchored by a newly secured ethane allocation from the Ministry of Energy, which is intended to structurally lower production costs and restore long-term growth capacity.

Profitability Dynamics

Profitability metrics reveal a challenging environment of value destruction, with a TTM operating margin of -27.02% and a net loss of 2.29 billion SAR. The gap between the return on invested capital (ROIC) and the weighted average cost of capital (WACC) stands at -14.26%, indicating that the business is not meeting its cost of funding. Cash flow generation remains under pressure, evidenced by net operating cash outflows of 302.7 million SAR in fiscal 2025. While the company has historically struggled with volatile margins, the current profitability story is one of survival, awaiting a cyclical upturn and the realization of cost-saving strategic initiatives.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

2.24

Cost of Equity Minimum required rate of return demanded by shareholders

14.2%

WACC Weighted average cost of total debt and equity funding

10.4%

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

118.8%

Risk Factors

Saudi Kayan carries a high-risk profile, marked by a Beta of 2.24, reflecting extreme sensitivity to market volatility. The balance sheet is heavily leveraged with 9.14 billion SAR in total debt against a modest cash position of 171 million SAR. A critical risk is the level of accumulated losses, which reached 43% of share capital by the end of fiscal 2025, nearing the 50% regulatory threshold that requires extraordinary general assembly intervention. However, liquidity risks were partially mitigated in 2025 through a major debt restructuring that converted bilateral loans into a 10-year syndicate facility, significantly reducing the immediate mismatch between current assets and current liabilities.