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4021

Governance: C

CMCER

Canadian Medical Center Co.

5.46 SAR / Share

As of: May 28, 2026

69.0x P/E Ratio Trailing 12 Months

4.5x P/B Ratio Price to Book Value

1.8% Dividend Yield Annual Dividend / Share

420.42M SAR Market Cap Total Valuation

0.80 Beta Systematic Risk Index

3.9% Net Margin Net Profit / Revenue

The Story

CMCER is a newly transitioned Main Market healthcare provider delivering steady revenue expansion through corporate medical clinic contracts, balanced by high customer concentration and negative reinvestment dynamics.

Source: Q1 2026 (2026-05-12)

Value Creation +7.2% 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

1.8%

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

-9.7%

Payout Ratio Percent of net profits distributed as dividends

126.4%

Net Margin Net profit margin generated from total operational revenue

3.9%

ROIC Return on Invested Capital

15.1%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

69.0x

P/B Ratio Market capitalization compared to corporate book value

4.5x

EV / EBITDA Operating multiple reflecting core operational leverage

17.4x

EV / SALES Asset pricing multiple relative to total topline revenue

2.7x

Growth Story

CMCER has demonstrated robust top-line expansion, with revenue rising from 100,342,402 SAR in FY 2023 to 110,802,879 SAR in FY 2024, and further to 148,231,293 SAR in FY 2025, reaching a TTM level of 156,185,758 SAR. This growth is heavily driven by corporate medical clinic project contracts, which brought in 37,539,466 SAR of the total 38,043,638 SAR revenue in the first quarter of 2026. However, despite this strong historical revenue trajectory, the company's long-term growth capacity is constrained by a negative five-year average reinvestment rate of -64.36%. This negative reinvestment rate, combined with a 15.05% five-year average ROIC, yields a negative sustainable growth rate of -9.69%, indicating that the company is currently distributing or harvesting capital rather than aggressively compounding it back into the business.

Profitability Dynamics

CMCER exhibits solid value creation, characterized by a five-year average ROIC of 15.05% that comfortably exceeds its WACC of 7.82%, creating a positive value gap of 7.23%. However, profitability margins show some compression; while operating income grew from 11,665,323 SAR in FY 2024 to 18,108,238 SAR in FY 2025, the TTM operating margin stands at 10.89%, and the net profit margin is a modest 3.90% (TTM net income of 6,090,420 SAR). This margin pressure is partly due to rising operational costs, such as recruitment services from related parties like Mehan for Human Resources. Cash flow generation remains focused on shareholder returns and liquidity management, with the company declaring a 6,160,000 SAR dividend for H2 2025 and allocating 5,000,000 SAR to a discretionary portfolio for share buybacks.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.80

Cost of Equity Minimum required rate of return demanded by shareholders

7.8%

WACC Weighted average cost of total debt and equity funding

7.8%

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

2.2%

Risk Factors

The primary risk facing CMCER is its extreme customer concentration, with a single major customer accounting for 35% of Q1 2026 revenue and representing 18.4 million SAR of its trade receivables. This concentration is compounded by credit risk, as trade receivables of 69,043,193 SAR require an expected credit loss provision of 7,947,707 SAR. On the leverage front, the company has historically maintained low debt, but recently entered into a Tawarruq facility in Q1 2026, drawing down 3.5 million SAR at SIBOR plus 4.5% to support working capital. With a relevered beta of 0.80, the stock exhibits lower market volatility, but the operational reliance on a few corporate contracts and related-party transactions (such as 3,066,910 SAR due to Mehan for Human Resources) presents distinct business-specific risks.

Governance Disclosures

Rating: C

We track 9 key governance and oversight matters for this company in our database.

Significance: 5/10 Tunneling

Related-Party Recruitment Services with Mehan for Human Resources

The company procured recruitment services from Mehan for Human Resources, an entity under common directorship, totaling SAR 3,057,721 during the three-month period ended March 31, 2026. The outstanding balance due to Mehan for Human Resources increased to SAR 3,066,910 as of March 31, 2026, compared to SAR 964,764 at the end of 2025.

Significance: 4/10 Tunneling

Related-Party Transaction for Property Lease

The company paid SAR 1,177,797 in lease payments to Khayrat Amariya Real Estate Company, an entity under common directorship. In the previous year, the company also paid SAR 1,876,300 for leasehold improvements to the same entity.

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In-Depth Analysis