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4080

Governance: D

SINAD HOLDING

Sinad Holding Co.

8.99 SAR / Share

As of: May 28, 2026

99.2x P/E Ratio Trailing 12 Months

1.1x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

1.14B SAR Market Cap Total Valuation

0.84 Beta Systematic Risk Index

0.7% Net Margin Net Profit / Revenue

The Story

Sinad Holding operates as a diversified investment vehicle with deep roots in Saudi food and beverage manufacturing, currently navigating a transition toward profitability after historical volatility.

Source: Q1 2026 (2026-05-06)

Value Creation -5.8% 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

+0.1%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

0.7%

ROIC Return on Invested Capital

2.6%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

99.2x

P/B Ratio Market capitalization compared to corporate book value

1.1x

EV / EBITDA Operating multiple reflecting core operational leverage

8.7x

EV / SALES Asset pricing multiple relative to total topline revenue

0.8x

Growth Story

The Shifting Tides of a Diversified Fleet. Sinad Holding's revenue grew from 1.64 billion SAR in fiscal 2023 to 1.74 billion SAR in fiscal 2024, before softening slightly to 1.69 billion SAR in fiscal 2025, and standing at 1.71 billion SAR on a TTM basis. This represents a modest recovery but highlights a mature, low-growth profile. The company's long-term growth capacity is severely constrained, as evidenced by a 5-year average reinvestment rate of just 2.99% and a 5-year average ROIC of 2.65%, culminating in a Sustainable Growth Rate of a mere 0.08%. This indicates that the company is reinvesting very little of its earnings back into the business, and the capital it does deploy is generating low returns, limiting its organic expansion capacity. The recent divestment of its logistics subsidiary, Fast Delivery Company, for a nominal sum of 1 SAR in late 2025 further underscores a strategic consolidation, shedding non-core, loss-making operations to focus on its core industrial food and beverage segments.

Profitability Dynamics

The Leaky Bucket of Capital Allocation. Sinad Holding's profitability profile reveals a persistent destruction of economic value. The company's 5-year average ROIC of 2.65% stands well below its WACC of 8.44%, resulting in a negative value creation gap of -5.80%. While the company has recovered from a massive operating loss of -95.4 million SAR in fiscal 2023 to post an operating income of 103.5 million SAR in fiscal 2025 and 95.8 million SAR on a TTM basis, operating margins remain thin at 5.59% TTM. Net profitability is even more fragile, with a TTM net income of 11.4 million SAR yielding a profit margin of just 0.67%, down from 18.2 million SAR in fiscal 2025. This margin compression is exacerbated by valuation losses on its equity investment portfolio, including its holding in Emaar Economic City, which fell to 157 million SAR by March 2026, dragging down overall returns and highlighting the volatile nature of its investment segment.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.84

Cost of Equity Minimum required rate of return demanded by shareholders

7.9%

WACC Weighted average cost of total debt and equity funding

8.4%

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

36.3%

Risk Factors

The Heavy Anchor of Subsidiary Debt. Sinad Holding carries a substantial debt load of 412.9 million SAR against a cash balance of 99.4 million SAR, exposing it to significant leverage risks. The company's cost of debt is high, with an after-tax cost of debt of 9.81% exceeding its cost of equity of 7.95%, a highly unusual capital structure dynamic that penalizes debt-funded expansion. Business-specific risks are amplified by its multi-tiered subsidiary structure, where operations are heavily dependent on the performance of Halawani Brothers and Al Rabie Saudi Foods, both of which face localized economic pressures, particularly in Egypt where currency translation differences impact the consolidated financials. Additionally, the company faces regulatory constraints, such as the requirement to obtain approval from the Economic Cities and Special Zones Authority before disposing of its Emaar Economic City shares, which restricts its liquidity and financial flexibility.

Governance Disclosures

Rating: D

We track 17 key governance and oversight matters for this company in our database.

Significance: 5/10 Tunneling

Divestment of Subsidiary for Nominal Value

The Company sold its entire shares in Fast Delivery Company for Logistics Services for a nominal price of SAR 1. The subsidiary had recognized losses from discontinued operations of SAR 6.5 million for the year ended 31 December 2025, and the sale resulted in a gain of SAR 834K. The identity of the buyer is not disclosed in the note.

Mitigating Factors: The divestment plan was approved by the Company's Board of Directors on 29 September 2025.

Significance: 7/10 Entrenchment

Controlling Shareholder Ownership Structure

Dallah Al Baraka Holding Company holds a majority stake of 53.18% in the Parent Company, while other shareholders hold the remaining 46.82%.

Mitigating Factors: The Company is listed on the Capital Market Authority in the Kingdom of Saudi Arabia, which subjects it to regulatory oversight.

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In-Depth Analysis