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4030
Governance: B

BAHRI

National Shipping Company of Saudi Arabia

33.80 SAR / Share

As of: May 28, 2026

7.4x P/E Ratio Trailing 12 Months
1.8x P/B Ratio Price to Book Value
2.4% Dividend Yield Annual Dividend / Share
31.19B SAR Market Cap Total Valuation
1.24 Beta Systematic Risk Index
32.1% Net Margin Net Profit / Revenue

Company Profile

The National Shipping Company of Saudi Arabia (Bahri) is a Saudi Joint Stock Company primarily engaged in purchasing, selling, and operating vessels for the coordination of transport and storage on board vessels, transportation of cargo, cargo clearance, agencies for maritime shipping companies, and all marine transport activities. The Group operates through four distinct segments: crude oil transportation, chemicals transportation, logistics, and dry bulk transportation. It is also engaged in water desalination activities, property ownership, and equity investments. The Group's majority shareholders, PIF and Aramco, are fully or majorly owned by the Government of Saudi Arabia and exercise significant influence over the Group.

Sector Energy
Fiscal Year End 12-31
Latest Filing Q1 2026 (2026-05-07)
Shares Outstanding 922.85M
Market Cap 31.19B
Enterprise Value 39.96B
Geographic Revenue
Major Customers Top Customer 47.5% (ARAMCO and its subsidiaries) — Related Party

The Story

Bahri serves as the maritime shipping champion of Saudi Arabia, driving robust top-line expansion and heavy capital reinvestment, though its returns on capital remain closely tied to cyclical global shipping rates and high leverage.

Source: Q1 2026 (2026-05-07)

Value Creation -1.1% 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
2.4%
Sustainable Growth Rate Rate at which company can grow internally using reinvested profits
+7.9%
Payout Ratio Percent of net profits distributed as dividends
17.5%
Net Margin Net profit margin generated from total operational revenue
32.1%
ROIC Return on Invested Capital
7.7%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
7.4x
P/B Ratio Market capitalization compared to corporate book value
1.8x
EV / EBITDA Operating multiple reflecting core operational leverage
6.8x
EV / SALES Asset pricing multiple relative to total topline revenue
3.0x

Growth Story

Bahri's growth story is a relentless voyage of fleet expansion, characterized by substantial capital deployment to scale its maritime capacity. Revenue has climbed steadily from SAR 8.78 billion in FY 2023 to SAR 9.48 billion in FY 2024, and further to SAR 10.35 billion in FY 2025, culminating in a TTM revenue of SAR 13.14 billion. This top-line momentum is fueled by aggressive reinvestment, with a five-year average reinvestment rate of 102.18%. This massive capital commitment is directed toward expanding its fleet of 104 owned vessels and funding projects under construction, which stood at SAR 903.21 million as of March 31, 2026. Despite this heavy capital outlay, the company's long-term sustainable growth rate is estimated at 7.87%, reflecting the balance between its high reinvestment rate and its historical return on capital.

Profitability Dynamics

Navigating the narrow straits of capital efficiency, Bahri demonstrates strong operating profitability but faces challenges in consistently outperforming its cost of capital. The company achieved an impressive TTM operating margin of 32.53% and a profit margin of 32.14%, translating to an EBIT of SAR 4.28 billion and a NOPAT of SAR 4.19 billion. This profitability is heavily supported by its crude oil transportation segment, which generated SAR 3.74 billion in revenue for the three months ended March 31, 2026, alongside contributions from its chemical joint venture, Petredec. However, Bahri's five-year average ROIC of 7.70% falls slightly short of its WACC of 8.77%, resulting in a negative ROIC-to-WACC gap of -1.07%. This indicates that while the company generates substantial absolute cash flows and profits, its massive asset base—including SAR 20.28 billion in property and equipment—requires high capital charges that historically dilute economic value creation.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index
1.24
Cost of Equity Minimum required rate of return demanded by shareholders
9.8%
WACC Weighted average cost of total debt and equity funding
8.8%
Debt-to-Equity Ratio Proportion of corporate funding financed by debt creditors
37.8%

Risk Factors

Anchoring against volatile macroeconomic and geopolitical winds, Bahri's risk profile is defined by its capital-intensive structure and high leverage. The company carries a substantial debt load, with latest total debt reaching SAR 11.80 billion, comprising SAR 3.90 billion in Sukuk and SAR 7.65 billion in Murabaha loans. This leverage is reflected in a relevered beta of 1.239, indicating higher systemic volatility than the broader market. Furthermore, Bahri's operations are highly exposed to customer concentration, with Saudi Aramco and its subsidiaries accounting for SAR 3.37 billion in revenue for the three months ended March 31, 2026, and representing SAR 2.73 billion of the company's trade receivables. While geopolitical developments have recently had a positive impact on freight rates and financial performance, the inherent cyclicality of global shipping rates, fluctuating bunker fuel costs, and the variable interest rates on its Sukuk and Murabaha loans present ongoing operational and financial risks.

Governance Disclosures

Rating: B

We track 16 key governance and oversight matters for this company in our database.

Significance: 3/10 Tunneling

Remuneration of Board and Key Management

Total compensation for key management personnel reached SAR 50.99 million in 2025. Remuneration for the Board of Directors specifically increased to SAR 14.4 million from SAR 9.5 million in 2024.

Mitigating Factors: Remuneration is subject to regulatory limits and shareholder approval processes.
Significance: 7/10 Asset Risk

Vessel Mortgages as Loan Security

The Group's Murabaha long-term loans, totaling SAR 7,811,139,000, are secured by promissory notes and mortgages against the Group's vessels.

Mitigating Factors: The Group was in compliance with all applicable loan covenants as of 31 December 2025.

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