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3007

Governance: D

OASIS

Zahrat Al Waha for Trading Co.

2.34 SAR / Share

As of: Mar 26, 2026

26.1x P/E Ratio Trailing 12 Months

1.8x P/B Ratio Price to Book Value

1.9% Dividend Yield Annual Dividend / Share

526.50M SAR Market Cap Total Valuation

1.31 Beta Systematic Risk Index

4.2% Net Margin Net Profit / Revenue

The Story

A specialized plastic packaging manufacturer navigating a period of revenue contraction and capital consolidation within the regional beverage supply chain.

Source: Q1 2026 (2026-04-30)

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

1.9%

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

-2.8%

Payout Ratio Percent of net profits distributed as dividends

50.2%

Net Margin Net profit margin generated from total operational revenue

4.2%

ROIC Return on Invested Capital

7.9%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

26.1x

P/B Ratio Market capitalization compared to corporate book value

1.8x

EV / EBITDA Operating multiple reflecting core operational leverage

9.3x

EV / SALES Asset pricing multiple relative to total topline revenue

1.4x

Growth Story

The company has experienced a sustained period of top-line pressure, with revenue declining from 572.5 million SAR in fiscal 2023 to 475.3 million SAR in fiscal 2025. While TTM revenue shows a slight stabilization at 478.2 million SAR, the underlying growth capacity is constrained. A five-year average reinvestment rate of -35.67% indicates that OASIS is currently divesting or returning capital rather than funding expansion. This negative reinvestment, paired with a 7.93% average ROIC, results in a negative sustainable growth rate of -2.83%, suggesting the business is intentionally shrinking its capital base to align with current market demand.

Profitability Dynamics

OASIS is currently in a value-dilutive phase, as its five-year average ROIC of 7.93% fails to meet its 9.76% cost of capital (WACC), resulting in a negative value gap of 1.82%. Profitability is tightly squeezed by a high-concentration cost structure, where a single supplier provides nearly 73% of raw materials. While the company maintains a TTM operating margin of 8.66%, the net profit margin is a leaner 4.22%. Despite these challenges, the company managed to generate 36.3 million SAR in TTM NOPAT, though value creation remains hampered by the inability to earn returns above the cost of equity, which stands at 10.05%.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.31

Cost of Equity Minimum required rate of return demanded by shareholders

10.1%

WACC Weighted average cost of total debt and equity funding

9.8%

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

31.9%

Risk Factors

The risk profile is anchored by significant concentration and a heavy reliance on short-term financing. The debt structure is dominated by 163.3 million SAR in short-term loans used for working capital, exposing the company to rollover and interest rate risks, reflected in a beta of 1.31. Operational risk is elevated by customer concentration, with the two largest clients accounting for over 27% of total sales. Furthermore, the company faces external pressures from regional geopolitical instability and seasonal demand volatility, which management notes can significantly impact interim results.

Governance Disclosures

Rating: D

We track 14 key governance and oversight matters for this company in our database.

Significance: 3/10 Tunneling

Management Remuneration and Personal Receivables

Key Management Personnel (KMP) received SAR 735,482 in salaries and allowances during the period. Additionally, the company reports SAR 376,136 due from KMP included within other receivables.

Mitigating Factors: Remuneration and allowances are disclosed and categorized as standard compensation for board and committee attendance.

Significance: 7/10 Info Asymmetry

Supplier and Customer Concentration Risk

The company exhibits high dependency on a single supplier, which accounts for 72.95% of total raw material purchases, amounting to SAR 76.07 million. Furthermore, the two largest customers represent 27.28% of the company's net sales.

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In-Depth Analysis