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4013

Governance: A

SULAIMAN ALHABIB

Dr. Sulaiman Al Habib Medical Services Group

217.80 SAR / Share

As of: May 28, 2026

31.4x P/E Ratio Trailing 12 Months

9.6x P/B Ratio Price to Book Value

2.8% Dividend Yield Annual Dividend / Share

76.23B SAR Market Cap Total Valuation

0.88 Beta Systematic Risk Index

17.3% Net Margin Net Profit / Revenue

The Story

A premier healthcare provider in Saudi Arabia combining rapid, asset-heavy expansion with exceptionally high returns on capital and robust operating margins.

Source: Q1 2026 (2026-05-03)

Value Creation +23.2% 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

2.8%

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

+9.4%

Payout Ratio Percent of net profits distributed as dividends

88.6%

Net Margin Net profit margin generated from total operational revenue

17.3%

ROIC Return on Invested Capital

30.9%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

31.4x

P/B Ratio Market capitalization compared to corporate book value

9.6x

EV / EBITDA Operating multiple reflecting core operational leverage

25.1x

EV / SALES Asset pricing multiple relative to total topline revenue

6.0x

Growth Story

Sulaiman Al Habib's growth story is characterized by a systematic, capital-intensive expansion of its healthcare network. Revenue has scaled significantly, rising from 9.51 billion SAR in FY 2023 to 11.20 billion SAR in FY 2024, and reaching 13.71 billion SAR in FY 2025, with TTM revenue standing at 13.98 billion SAR. This trajectory is supported by a 5-year average reinvestment rate of 30.30%. Combined with a stellar 5-year average Return on Investigated Capital (ROIC) of 30.93%, the company boasts a sustainable growth rate of 9.37%. This indicates a strong self-funding capacity to build new hospitals and medical complexes without relying solely on external equity dilution.

Profitability Dynamics

The company's profitability profile demonstrates exceptional value creation, driven by high-margin hospital operations and integrated pharmacy services. With a TTM operating margin of 18.45% and a net profit margin of 17.34%, Sulaiman Al Habib translates its top-line growth efficiently into earnings, posting a TTM net income of 2.43 billion SAR. The true hallmark of its financial strength is the massive spread between its 5-year average ROIC of 30.93% and its estimated WACC of 7.68%, yielding an extraordinary value-creation gap of 23.25%. This high return on capital, coupled with substantial capital expenditures of 2.98 billion SAR TTM, reflects a business that successfully deploys massive amounts of capital into highly lucrative healthcare infrastructure.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.88

Cost of Equity Minimum required rate of return demanded by shareholders

8.2%

WACC Weighted average cost of total debt and equity funding

7.7%

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

12.5%

Risk Factors

Despite its aggressive expansion, Sulaiman Al Habib manages its risk profile through structured, long-term financing. The company carries a total debt of 9.50 billion SAR against a cash balance of 2.42 billion SAR, resulting in a net debt position that reflects its asset-heavy strategy. This debt is primarily composed of long-term loans from local banks and the Ministry of Finance, with only 70.57 million SAR classified as current liabilities as of Q1 2026, mitigating short-term refinancing risks. Operating with a relevered beta of 0.883, the stock exhibits lower volatility than the broader market, reflecting the defensive, non-cyclical nature of healthcare demand. Key operational risks include managing the execution of multiple large-scale hospital projects simultaneously and navigating regional geopolitical developments.

Governance Disclosures

Rating: A

We track 12 key governance and oversight matters for this company in our database.

Significance: 4/10 Info Asymmetry

Business Transactions with Associate Parties

The Group generated revenue of SAR 24,363,369 from associate parties during the three-month period ended 31 March 2026 and made purchases and services of SAR 2,497,643 from them.

Significance: 2/10 Tunneling

Purchases and Services from Board of Directors

The Group disclosed purchases and services from the Board of Directors totaling SAR 860,493 for the three-month period ended 31 March 2026, compared to SAR 460,494 for the same period in 2025.

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In-Depth Analysis