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4110

Governance: C

BATIC

Batic Investments and Logistics Co.

2.16 SAR / Share

As of: May 28, 2026

52.1x P/E Ratio Trailing 12 Months

3.0x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

1.30B SAR Market Cap Total Valuation

0.98 Beta Systematic Risk Index

4.4% Net Margin Net Profit / Revenue

The Story

BATIC is transitioning from multi-year operational losses to positive net profitability, supported by revenue expansion across its diverse logistics, security, and real estate segments, despite facing significant municipal legal disputes.

Source: Q1 2026 (2026-05-12)

Value Creation -13.7% 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

-0.8%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

4.4%

ROIC Return on Invested Capital

-4.8%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

52.1x

P/B Ratio Market capitalization compared to corporate book value

3.0x

EV / EBITDA Operating multiple reflecting core operational leverage

21.8x

EV / SALES Asset pricing multiple relative to total topline revenue

2.4x

Growth Story

BATIC's growth story is one of gradual recovery and structural realignment, moving past the stagnant top-line performance of fiscal 2023 and fiscal 2024, where revenues hovered around SAR 480.6 million and SAR 481.9 million respectively. By fiscal 2025, revenue expanded to SAR 543.9 million, continuing its upward trajectory to reach SAR 567.0 million in the trailing twelve months (TTM). Despite this positive top-line momentum, the company's long-term growth capacity remains constrained by historical capital inefficiency. BATIC's five-year average Return on Invested Capital (ROIC) stands at -4.82%, which, when paired with a five-year average reinvestment rate of 16.83%, yields a negative Sustainable Growth Rate of -0.81%. This indicates that historical growth has been dilutive rather than self-sustaining, requiring the company to rely on operational turnarounds rather than organic capital compounding to drive future expansion.

Profitability Dynamics

The profitability narrative highlights a sharp operational turnaround, though the company continues to destroy economic value relative to its cost of capital. BATIC posted severe operating losses of SAR 5.1 million in fiscal 2023 and SAR 41.5 million in fiscal 2024, alongside net losses of SAR 13.9 million and SAR 58.7 million respectively. However, fiscal 2025 marked a return to profitability with an operating income of SAR 48.4 million and net income of SAR 26.6 million, stabilizing in the TTM period with an operating margin of 6.92% (EBIT of SAR 39.2 million) and a net profit margin of 4.39% (Net Income of SAR 24.9 million). Despite this operational recovery, BATIC's five-year average ROIC of -4.82% falls significantly short of its WACC of 8.86%, resulting in a negative value creation gap of -13.68%. This persistent gap demonstrates that while current cash flows have improved, the business has historically failed to generate returns above its hurdle rate, which is driven by a Cost of Equity of 8.59% and an after-tax Cost of Debt of 11.64%.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.98

Cost of Equity Minimum required rate of return demanded by shareholders

8.6%

WACC Weighted average cost of total debt and equity funding

8.9%

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

9.6%

Risk Factors

BATIC's risk profile is characterized by moderate balance sheet leverage but intense operational and legal headwinds. The company carries a total debt of SAR 123.8 million against a cash balance of SAR 40.7 million, resulting in a net debt position that is manageable relative to its SAR 1.30 billion market capitalization and SAR 1.38 billion enterprise value. However, the business faces severe contract risks within its smart parking subsidiary, Smart Cities Solutions. Municipalities in Qassim and the Eastern Province terminated major parking contracts in 2025, leading to ongoing litigation. The Qassim Region Municipality has demanded SAR 36.7 million, a claim upheld by the Court of Appeal and currently appealed to the Supreme Court, while the Eastern Province Municipality has issued invoices totaling SAR 78.3 million, which are currently in early-stage litigation. These disputes, combined with a relevered beta of 0.98 reflecting market-matching systematic risk, present material cash flow uncertainties that could disrupt the company's fragile recovery.

Governance Disclosures

Rating: C

We track 9 key governance and oversight matters for this company in our database.

Significance: 3/10 Tunneling

Related Party Transaction Approval and Pricing Policy

The Group discloses its framework for managing transactions with related parties, which include associates, partners, directors, and key management personnel. Pricing policies and payment terms for these transactions are approved by the Company's management.

Mitigating Factors: Pricing policies and terms of payment are subject to approval by the Company's management.

Significance: 4/10 Entrenchment

Amendment of Company By-laws and Share Capital Restructuring

The company amended its By-laws to align with new regulations, implementing a 10-for-1 share split and cancelling the statutory reserve clause, transferring those balances to accumulated profits/losses.

Mitigating Factors: The amendments were approved by the Extraordinary General Assembly in accordance with the new Regulations for Companies and Capital Market Authority requirements.

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

In-Depth Analysis