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4003

Governance: C

EXTRA

United Electronics Co.

79.50 SAR / Share

As of: May 28, 2026

10.7x P/E Ratio Trailing 12 Months

4.1x P/B Ratio Price to Book Value

2.5% Dividend Yield Annual Dividend / Share

6.28B SAR Market Cap Total Valuation

0.83 Beta Systematic Risk Index

7.8% Net Margin Net Profit / Revenue

The Story

EXTRA combines a dominant consumer electronics retail footprint with a high-margin consumer finance engine to deliver consistent value creation and robust returns on capital.

Source: Q1 2026 (2026-05-17)

Value Creation +13.4% 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

2.5%

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

+3.3%

Payout Ratio Percent of net profits distributed as dividends

26.9%

Net Margin Net profit margin generated from total operational revenue

7.8%

ROIC Return on Invested Capital

19.6%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

10.7x

P/B Ratio Market capitalization compared to corporate book value

4.1x

EV / EBITDA Operating multiple reflecting core operational leverage

11.3x

EV / SALES Asset pricing multiple relative to total topline revenue

1.1x

Growth Story

EXTRA's growth trajectory resembles a steady engine climbing a long hill, characterized by consistent and disciplined expansion. Revenue has climbed steadily from SAR 6.20 billion in fiscal 2023 to SAR 6.78 billion in fiscal 2024, and further to SAR 7.45 billion in fiscal 2025, reaching SAR 7.53 billion on a TTM basis. This top-line expansion is supported by a 5-year average reinvestment rate of 16.66%. Combined with a stellar 5-year average return on invested capital (ROIC) of 19.56%, the company possesses a sustainable growth rate of 3.26%. This indicates that EXTRA's long-term growth capacity is anchored in high capital efficiency, allowing it to expand its retail footprint—which stands at 57 branches across the region—and its consumer finance book without requiring dilutive or excessive capital injections.

Profitability Dynamics

The company's profitability story is a high-yield harvest, driven by a highly lucrative dual-segment business model. EXTRA generates exceptional economic value, boasting a 5-year average ROIC of 19.56% against a WACC of 6.18%, creating a substantial value-creation gap of 13.38%. This superior return profile is underpinned by healthy margins, with a TTM operating margin of 9.08% on an EBIT of SAR 683.83 million, and a net profit margin of 7.79% yielding a TTM net income of SAR 586.80 million. The integration of high-volume retail sales with the high-margin consumer finance segment (Tas'heel) ensures robust cash flow generation. This cash flow easily funds the company's TTM capital expenditures of SAR 77.98 million, while supporting substantial shareholder returns, including a SAR 240.0 million dividend paid in early 2026 and a SAR 30.2 million share buyback program.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.83

Cost of Equity Minimum required rate of return demanded by shareholders

7.9%

WACC Weighted average cost of total debt and equity funding

6.2%

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

40.0%

Risk Factors

Managing these operations requires navigating a credit and leverage tightrope, as the expansion of the consumer finance segment inherently introduces financial leverage and credit risk. EXTRA carries a total debt of SAR 2.51 billion against a market capitalization of SAR 6.28 billion, primarily utilized to fund its Murabaha and Tawarruq financing portfolios. While the company's cost of equity is 7.90% with a relevered beta of 0.83, its after-tax cost of debt is remarkably low at 1.90%. The primary operational risk is credit default within the consumer finance book, which the company manages through a robust credit-scoring system, maintaining an expected credit loss (ECL) allowance of SAR 136.1 million as of March 31, 2026. Furthermore, because its bank borrowings are tied to variable SAIBOR rates while customer contracts are fixed, the company faces interest rate risk, though this is mitigated by a massive liquidity cushion of SAR 2.99 billion in unused credit facilities.

Governance Disclosures

Rating: C

We track 6 key governance and oversight matters for this company in our database.

Significance: 6/10 Info Asymmetry

Concentration of Trade Receivables

The Group reports a significant concentration of credit risk, with 93% of its total trade receivables due from only two customers as of 31 March 2026, representing a substantial increase from 48% at the end of 2025.

Mitigating Factors: Management believes this concentration is mitigated because the customers have an established track record of regular and timely payments.

Significance: 5/10 Propping

Shareholder-Provided Credit Facilities

The Group discloses that it has access to credit facilities made available by its shareholder to assist in managing its liquidity requirements and ensuring sufficient operational headroom.

Mitigating Factors: The Group also maintains substantial unused credit facilities from commercial banks totaling approximately Saudi Riyals 2,989.0 million as of 31 March 2026.

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In-Depth Analysis