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4005

Governance: A

CARE

National Medical Care Co.

98.15 SAR / Share

As of: May 28, 2026

15.4x P/E Ratio Trailing 12 Months

2.3x P/B Ratio Price to Book Value

2.0% Dividend Yield Annual Dividend / Share

4.39B SAR Market Cap Total Valuation

0.91 Beta Systematic Risk Index

17.8% Net Margin Net Profit / Revenue

The Story

National Medical Care Company (CARE) exhibits a robust financial profile characterized by steady revenue expansion, high returns on capital, and strategic capacity additions backed by its ultimate controlling shareholder, GOSI.

Source: Q1 2026 (2026-05-11)

Value Creation +7.8% 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

2.0%

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

+8.2%

Payout Ratio Percent of net profits distributed as dividends

31.3%

Net Margin Net profit margin generated from total operational revenue

17.8%

ROIC Return on Invested Capital

15.4%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

15.4x

P/B Ratio Market capitalization compared to corporate book value

2.3x

EV / EBITDA Operating multiple reflecting core operational leverage

10.9x

EV / SALES Asset pricing multiple relative to total topline revenue

2.9x

Growth Story

Under the metaphor of 'The Expanding Ward', CARE's growth trajectory is defined by steady capacity expansion and strategic acquisitions. Revenue has grown consistently from SAR 1,081,783,416 in FY 2023 to SAR 1,293,685,328 in FY 2024, and reached SAR 1,600,361,606 in FY 2025, with TTM revenue standing at SAR 1,603,032,793. This expansion is supported by a 5-year average reinvestment rate of 53.19% and a 5-year average ROIC of 15.43%, yielding a sustainable growth rate of 8.20%. The company's long-term growth capacity is further highlighted by its massive capital commitments, which surged to approximately SAR 423.3 million as of March 31, 2026, primarily dedicated to constructing a new healthcare facility in northern Riyadh, funded by a newly secured SAR 1.0 billion term facility.

Profitability Dynamics

Guided by the metaphor of 'The Precision Scalpel', CARE demonstrates highly efficient operations and strong value creation. The company's 5-year average ROIC of 15.43% comfortably exceeds its WACC of 7.60%, creating a positive value-creation gap of 7.83%. Profitability remains robust, with a TTM operating margin of 19.47% and a net profit margin of 17.81%, driven by TTM EBIT of SAR 312,150,633 and NOPAT of SAR 287,522,012. This strong margin profile has translated into consistent net income, which rose from SAR 240,927,386 in FY 2023 to SAR 318,469,575 in FY 2025, though ultimate cash flow generation is closely tied to the management of its working capital.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.91

Cost of Equity Minimum required rate of return demanded by shareholders

8.3%

WACC Weighted average cost of total debt and equity funding

7.6%

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

17.5%

Risk Factors

Under the metaphor of 'The Heavy IV Drip', CARE's risk profile is characterized by significant balance sheet obligations and customer concentration. The company's latest total debt stands at SAR 769,510,900, which includes long-term borrowings of SAR 420,579,755 and lease liabilities that rose to SAR 309,064,636 following a new SAR 157.26 million medical equipment lease in 2026. A key operational risk is the high concentration of receivables; trade and related party receivables reached SAR 1,022,426,526 as of March 31, 2026, with SAR 322,561,859 due from its ultimate controlling party, GOSI. This ties up substantial liquidity, as reflected in a current working capital of SAR 356,375,761, and exposes the firm to collection timelines, though its relevered beta of 0.914 indicates moderate market sensitivity.

Governance Disclosures

Rating: A

We track 13 key governance and oversight matters for this company in our database.

Significance: 2/10 Tunneling

Purchases from Entity Owned by Shareholder and Director

The Group conducted commercial transactions with Drager Arabian Company Limited, an entity owned by a shareholder and director. Purchases for the three-month period ended 31 March 2026 amounted to SAR 65,150, with an outstanding due to balance of SAR 1,680.

Mitigating Factors: The terms of these transactions have been approved by the Group's management.

Significance: 2/10 Tunneling

Purchases from Entity Owned by Director

The Group conducted purchase transactions totaling SAR 853,156 with Drager Arabian Company Limited, an entity owned by a shareholder and director of the Group.

Mitigating Factors: The terms of these transactions have been approved by the Group's management and are at mutually agreed terms.

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In-Depth Analysis