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4070

Governance: D

TAPRCO

Tihama Advertising, Public Relations and Marketing Co.

15.08 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

— P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

345.66M SAR Market Cap Total Valuation

0.83 Beta Systematic Risk Index

-109.6% Net Margin Net Profit / Revenue

The Story

Tihama is undergoing a radical structural contraction, liquidating loss-making subsidiaries and reducing capital to offset deep-seated operational deficits.

Source: Q3 2026 (2026-03-30)

Value Creation -132.1% 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

—

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

0.0%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

-109.6%

ROIC Return on Invested Capital

-124.6%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

—

EV / EBITDA Operating multiple reflecting core operational leverage

—

EV / SALES Asset pricing multiple relative to total topline revenue

5.1x

Growth Story

The company's revenue trajectory shows a consistent downward trend, contracting from 81.8 million SAR in fiscal 2023 to 66.4 million SAR in fiscal 2025, with TTM revenue further sliding to 56.8 million SAR. This decline is largely driven by the strategic decision to initiate liquidation and bankruptcy proceedings for multiple subsidiaries, including Tihama Education and Tihama Modern Bookstores. With a five-year average ROIC of -124.6% and a reinvestment rate of 0%, the company's sustainable growth rate is effectively non-existent. Growth capacity is currently sidelined as the group focuses on exiting loss-making segments and renewing exclusive distribution agreements to stabilize its remaining core.

Profitability Dynamics

Profitability remains the group's primary challenge, characterized by a massive value destruction gap where the ROIC-WACC spread stands at -132.5%. TTM operating margins are deeply negative at -72.6%, and net profit margins have deteriorated to -109.6%. While the group saw a temporary narrowing of losses in fiscal 2025 to -11.7 million SAR, the TTM net loss has widened significantly to -62.2 million SAR. Cash flow generation is hampered by negative operating results and significant provisions for slow-moving inventory, particularly school textbooks, which are subject to minimum annual purchase commitments from a single supplier.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.83

Cost of Equity Minimum required rate of return demanded by shareholders

7.9%

WACC Weighted average cost of total debt and equity funding

7.5%

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

9.2%

Risk Factors

Tihama's risk profile is dominated by 'going concern' uncertainties and legal complexities. Despite a capital reduction from 400 million SAR to 229.2 million SAR to absorb losses, accumulated losses still represent 28.66% of the new share capital. The group is currently embroiled in a lawsuit to recover the remaining 15 million SAR of an advance payment made to the Saudi Film Fund, having already recovered 22.5 million SAR. Additional risks include the expiration of commercial registrations for certain production units and the financial insolvency of its bookstore division, which is currently under bankruptcy proceedings.

Governance Disclosures

Rating: D

We track 10 key governance and oversight matters for this company in our database.

Significance: 4/10 Tunneling

Board and Executive Compensation

Disclosure of compensation for the nine-month period including SR 1,384,591 for the Board of Directors and committees (bonuses, allowances, and expenses) and SR 1,205,741 for senior executives (salaries, benefits, and bonuses).

Mitigating Factors: Transactions are disclosed as being conducted within the ordinary course of business on the same terms as third parties.

Significance: 6/10 Info Asymmetry

Ownership Relinquishment Agreement with WPP

TAPRCO entered an agreement to relinquish a 20% ownership interest in United Advertising Company to WPP Group in exchange for the transfer of certain business operations. Discussions regarding the scope of the transfer and legal procedures are ongoing, and reciprocal put and call options are included in the agreement.

Mitigating Factors: The agreement includes reciprocal put and call options that are only exercisable upon completion of legal transfers and regulatory approvals.

For more, click here to view the full governance profile →

In-Depth Analysis