MBC GROUP

MBC Group Co.

24.70 SAR / Share

As of: May 28, 2026

20.7x P/E Ratio Trailing 12 Months

1.7x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

8.21B SAR Market Cap Total Valuation

0.77 Beta Systematic Risk Index

8.0% Net Margin Net Profit / Revenue

The Story

MBC Group is a leading media conglomerate in the Middle East, transitioning from traditional broadcasting to digital streaming under the stewardship of the Public Investment Fund.

Source: Q1 2026 (2026-05-14)

Value Creation -1.7% 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

-11.6%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

8.0%

ROIC Return on Invested Capital

5.9%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

20.7x

P/B Ratio Market capitalization compared to corporate book value

1.7x

EV / EBITDA Operating multiple reflecting core operational leverage

31.9x

EV / SALES Asset pricing multiple relative to total topline revenue

1.5x

Growth Story

Operating as a dual-engine aircraft flying on commercial fuel and sovereign tailwinds, MBC Group has experienced a massive expansion in its top-line performance. Total revenue reached 4.92 billion SAR on a TTM basis, following a strong FY 2025 where revenue stood at 5.39 billion SAR (comprising 4.24 billion SAR from contracts with customers and 1.15 billion SAR from other operating revenues), up from 4.20 billion SAR in FY 2024 and 1.71 billion SAR in FY 2023. Despite this rapid top-line expansion, the company's long-term growth capacity is characterized by a 5-year average ROIC of 5.85% and a negative average reinvestment rate of -197.94%, leading to a sustainable growth rate of -11.58%. This negative reinvestment rate indicates that the company's growth has been heavily supported by external government funding and capital releases rather than traditional internal capital reinvestment, making its future expansion capacity highly dependent on the continuation of strategic national initiatives.

Profitability Dynamics

The company's financial profile resembles a high-tech stage with expensive production costs, where high operational expenditures limit core profitability. MBC Group's 5-year average ROIC of 5.85% falls short of its WACC of 7.53%, creating a negative value creation gap of -1.68%. This gap is reflected in a thin TTM operating margin of 2.09%, driven by an EBIT TTM of 102.88 million SAR. However, the net profit margin is significantly higher at 8.05% (Net Income TTM of 396.29 million SAR), bolstered by government grants recognized as other operating revenues and net finance income. While the company continues to invest in content with a TTM Capex of 290.49 million SAR, its cash generation is heavily supported by non-operating items, leaving the core broadcasting and digital segments to chase self-sustainability.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.77

Cost of Equity Minimum required rate of return demanded by shareholders

7.6%

WACC Weighted average cost of total debt and equity funding

7.5%

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

1.5%

Risk Factors

MBC Group performs a tightrope walk between geopolitical winds and sovereign safety nets. On the balance sheet, leverage is exceptionally low, with total debt of only 119.32 million SAR against a massive cash reserve of 1.10 billion SAR, placing the company in a highly liquid net cash position. However, business-specific risks are prominent, including escalating geopolitical tensions in the Middle East during early 2026 which could disrupt supply chains and increase costs. Additionally, the company faces high counterparty risk with trade receivables and contract assets net of allowances standing at 2.06 billion SAR, alongside a heavy reliance on government funding tied to pre-agreed KPIs. The transition of ownership to the Public Investment Fund (PIF) in late 2025 provides a strong institutional backstop but closely aligns the company's risk profile with national strategic mandates.