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4082

Governance: C

MRNA

Morabaha Marina Financing Co.

8.01 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

0.7x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

559.28M SAR Market Cap Total Valuation

0.74 Beta Systematic Risk Index

— Net Margin Net Profit / Revenue

The Story

A diversified Saudi financier transitioning from traditional SME lending to a digital-first fintech ecosystem, currently navigating the costs of expansion and credit normalization.

Source: Annual 2025 (2026-04-13)

Value Creation -14.2% 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

—

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

-0.4%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

—

ROIC Return on Invested Capital

2.1%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

0.7x

EV / EBITDA Operating multiple reflecting core operational leverage

39.6x

EV / SALES Asset pricing multiple relative to total topline revenue

—

Growth Story

The company has demonstrated consistent top-line expansion, with total income rising from 169.4 million SAR in fiscal 2023 to 192.9 million SAR in fiscal 2024, and reaching 231.1 million SAR in fiscal 2025. This growth is primarily driven by the Tawarruq segment, which saw income increase to 214.3 million SAR in 2025. However, the long-term growth capacity is constrained by a negative 5-year average reinvestment rate of -16.7% and a sustainable growth rate of -0.35%. While the digital payments segment is scaling—increasing its revenue contribution to 2.5 million SAR in 2025—it remains a nascent part of the overall portfolio, which is still heavily reliant on traditional financing volumes.

Profitability Dynamics

MRNA faces a significant value creation challenge, evidenced by a 5-year average ROIC of 2.1% against a WACC of 17.4%, resulting in a negative value gap of over 15%. Profitability was severely impacted in fiscal 2025, with the company swinging to a TTM net loss of 5.26 million SAR. This decline was largely precipitated by a surge in net impairment losses on Islamic financing receivables, which jumped to 82.3 million SAR in 2025 from 25.8 million SAR the previous year. Furthermore, the digital payments subsidiary remains in a heavy investment phase, posting a net loss of 30.1 million SAR in 2025, which continues to offset the profits generated by the core SME financing division.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.74

Cost of Equity Minimum required rate of return demanded by shareholders

7.5%

WACC Weighted average cost of total debt and equity funding

16.3%

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

2.8%

Risk Factors

Credit risk is the primary concern, as non-performing loans escalated to 262.4 million SAR in 2025, up from 167.9 million SAR in 2024. The company's leverage is characterized by 551.4 million SAR in borrowings, primarily revolving Islamic facilities, contributing to a gearing ratio of 35%. While MRNA maintains a robust cash position of 147 million SAR, it is sensitive to interest rate fluctuations; a 50-basis point increase in special commission rates is estimated to impact net income by 2.15 million SAR. Additionally, the company is managing legal risks involving former executives claiming 5.2 million SAR, though management currently assesses the probability of an unfavorable outcome as low.

Governance Disclosures

Rating: C

We track 11 key governance and oversight matters for this company in our database.

Significance: 4/10 Info Asymmetry

Off-Balance Sheet Fiduciary Management

The company acts as a managing agent in a fiduciary capacity for a Musharakah agreement totaling SR 50 million. Because this is a fiduciary role, the assets are not recognized on the company's consolidated statement of financial position.

Mitigating Factors: The transaction is explicitly disclosed in the notes to the financial statements to ensure transparency regarding off-balance sheet activities.

Significance: 3/10 Entrenchment

Litigation with Former Executive Management

The company is currently a defendant in legal proceedings initiated by former executives. The plaintiffs are claiming SR 5.2 million related to various employee benefits.

Mitigating Factors: Management has assessed the probability of an unfavorable outcome as low based on current evidence.

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

In-Depth Analysis