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4015

Governance: D

JAMJOOM PHARMA

Jamjoom Pharmaceuticals Factory Co.

153.40 SAR / Share

As of: May 28, 2026

23.2x P/E Ratio Trailing 12 Months

6.3x P/B Ratio Price to Book Value

2.3% Dividend Yield Annual Dividend / Share

10.74B SAR Market Cap Total Valuation

0.85 Beta Systematic Risk Index

30.9% Net Margin Net Profit / Revenue

The Story

A high-margin pharmaceutical leader in the MENA region demonstrating consistent double-digit revenue growth and robust capital returns.

Source: Annual 2025 (2026-03-04)

Value Creation +12.3% 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

2.3%

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

+6.0%

Payout Ratio Percent of net profits distributed as dividends

52.2%

Net Margin Net profit margin generated from total operational revenue

30.9%

ROIC Return on Invested Capital

20.2%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

23.2x

P/B Ratio Market capitalization compared to corporate book value

6.3x

EV / EBITDA Operating multiple reflecting core operational leverage

20.2x

EV / SALES Asset pricing multiple relative to total topline revenue

7.0x

Growth Story

Revenue has grown from 1.10 billion SAR in fiscal 2023 to 1.50 billion SAR for the twelve months ended December 31, 2025, representing a steady upward trajectory. The company's growth is fueled by its expansion in Saudi Arabia, which accounts for 988.7 million SAR of revenue, and key export markets like Iraq and the Gulf. With a 5-year average ROIC of 20.2% and a reinvestment rate of approximately 29.9%, the company maintains a sustainable growth rate of 6.04%. This indicates a disciplined approach to scaling, where internal cash flows are recycled into capacity expansions, such as the new machinery and civil works currently in progress in Saudi Arabia.

Profitability Dynamics

Jamjoom Pharma exhibits strong value creation, evidenced by a significant ROIC vs. WACC gap of 12.6%. The operating margin remains healthy at 31.6% for the TTM period, supported by a gross profit of 938.8 million SAR. The company is highly cash-generative, ending 2025 with a cash balance of 357.6 million SAR, even after distributing 242.2 million SAR in dividends during the year. The profitability is anchored by its pharmaceutical segment, which contributes the bulk of revenue, while the consumer health segment provides a complementary, high-growth stream.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.85

Cost of Equity Minimum required rate of return demanded by shareholders

8.0%

WACC Weighted average cost of total debt and equity funding

7.9%

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

1.2%

Risk Factors

The company maintains a conservative risk profile with a net cash position, as its 357.6 million SAR in cash significantly exceeds its total debt of 123.9 million SAR. However, business-specific risks include a high customer concentration, with two major customers accounting for 65.8% of total revenue. Additionally, the company faces currency risks, particularly regarding its Egyptian operations and the volatility of the Egyptian Pound. There is also a contingent liability risk through corporate guarantees totaling 78.1 million SAR provided to support its joint venture in Algeria.

Governance Disclosures

Rating: D

We track 8 key governance and oversight matters for this company in our database.

Significance: 4/10 Tunneling

Procurement of Services and Materials from Affiliates

The Group engaged in significant procurement from affiliated entities, including SR 22,692,565 for services from Dream Sky Travel & Tourism Agency and SR 12,224,353 for packing materials from Tegan Al Fateh Factory Company Limited.

Mitigating Factors: Transactions are conducted at mutually agreed prices and disclosed in the related party note.

Significance: 5/10 Tunneling

Interest-Free Loan to Impaired Joint Venture

The Group maintains an interest-free loan receivable of SR 17,452,028 from Jamjoom HUPP Pharma LLC. This balance is fully impaired as the underlying investment in the joint venture is also fully impaired.

Mitigating Factors: The Group has recognized a full provision for impairment loss against this balance.

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In-Depth Analysis