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4017

Governance: C

FAKEEH CARE

Dr. Soliman Abdel Kader Fakeeh Hospital Co.

35.98 SAR / Share

As of: May 28, 2026

40.0x P/E Ratio Trailing 12 Months

2.6x P/B Ratio Price to Book Value

0.8% Dividend Yield Annual Dividend / Share

8.28B SAR Market Cap Total Valuation

0.89 Beta Systematic Risk Index

6.6% Net Margin Net Profit / Revenue

The Story

Fakeeh Care is a premier Saudi healthcare and education provider balancing steady top-line growth with an aggressive capital reinvestment cycle that tests its near-term profitability.

Source: Q1 2026 (2026-05-11)

Value Creation +0.3% 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

0.8%

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

+11.2%

Payout Ratio Percent of net profits distributed as dividends

33.3%

Net Margin Net profit margin generated from total operational revenue

6.6%

ROIC Return on Invested Capital

8.0%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

40.0x

P/B Ratio Market capitalization compared to corporate book value

2.6x

EV / EBITDA Operating multiple reflecting core operational leverage

23.4x

EV / SALES Asset pricing multiple relative to total topline revenue

3.0x

Growth Story

Fakeeh Care has demonstrated consistent top-line expansion, with revenues rising from 2,326,688,000 SAR in FY 2023 to 2,790,880,000 SAR in FY 2024, and reaching 3,090,245,000 SAR in FY 2025, with TTM revenue standing at 3,113,374,000 SAR. This growth is underpinned by an extraordinary five-year average reinvestment rate of 139.36%, driven by heavy capital expenditures such as the TTM Capex of 529,410,000 SAR. This aggressive reinvestment, combined with a five-year average ROIC of 8.00%, supports a sustainable growth rate of 11.15%. The company's long-term capacity expansion is further highlighted by the post-period signing of a binding agreement to acquire Dr. Mohammed Bin Rashid Al Fagih & Partners Company for 1.60 billion SAR, alongside the establishment of three new subsidiaries in 2025.

Profitability Dynamics

The company operates with a positive but narrow value creation spread, as its five-year average ROIC of 8.00% slightly exceeds its WACC of 7.69%, resulting in a gap of 0.31%. TTM EBIT of 275,626,000 SAR yields an operating margin of 8.85% and a net profit margin of 6.65%. While medical services remain the primary revenue driver, generating 657,257,000 SAR of the 724,147,000 SAR in segment revenue for the three months ended March 31, 2026, near-term profitability has faced pressure. Profit for the first quarter of 2026 declined to 26,167,000 SAR from 67,354,000 SAR in the prior-year period, impacted by rising direct costs and elevated quarterly finance costs of 17,176,000 SAR.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.89

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

15.4%

Risk Factors

The primary risk for Fakeeh Care stems from its capital-intensive expansion and the associated debt burden. The company carries a latest total debt of 1,278,001,000 SAR against a cash balance of 126,411,000 SAR, though total cash and cash equivalents reached 421,911,000 SAR by March 31, 2026. Quarterly finance costs rose to 17,176,000 SAR, reflecting increased borrowing. While the company remains fully compliant with its bank covenants, the upcoming 1.60 billion SAR cash acquisition of Dr. Mohammed Bin Rashid Al Fagih & Partners Company introduces substantial execution and integration risks. These operational risks are balanced by a defensive relevered beta of 0.892, which reflects the stable demand inherent in the healthcare sector.

Governance Disclosures

Rating: C

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

Significance: 5/10 Tunneling

Outstanding Balances Due from Related Parties

As of 31 March 2026, the Group had outstanding receivables due from related parties totaling SAR 45,522 thousand, which includes SAR 25,918 thousand from a non-controlling shareholder, SAR 15,419 thousand from entities under common ownership of the controlling shareholder, and SAR 4,093 thousand from a shareholder.

Mitigating Factors: Transactions with related parties arise mainly from goods/services received and various business arrangements undertaken at management approved contractual terms.

Significance: 4/10 Info Asymmetry

Revenue Concentration with Non-controlling Shareholder

The Group recorded revenue of SAR 9,299 thousand from a non-controlling shareholder during the three-month period ended 31 March 2026, compared to SAR 10,002 thousand in the same period of 2025.

Mitigating Factors: Transactions with related parties arise mainly from goods/services received and various business arrangements undertaken at management approved contractual terms.

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In-Depth Analysis