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4160

Governance: B

THIMAR

Thimar Development Holding Co.

30.78 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

18.1x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

200.07M SAR Market Cap Total Valuation

0.56 Beta Systematic Risk Index

— Net Margin Net Profit / Revenue

The Story

Thimar is a holding company in operational hibernation, currently navigating a court-mandated financial reorganization to pivot from legacy losses toward a new investment-led strategy.

Source: Annual 2025 (2026-04-13)

Value Creation -59.3% 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

—

ROIC Return on Invested Capital

-52.9%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

18.1x

EV / EBITDA Operating multiple reflecting core operational leverage

—

EV / SALES Asset pricing multiple relative to total topline revenue

—

Growth Story

The growth story is currently a 'restart' narrative rather than an expansionary one. With zero TTM revenue due to the cessation of operations in 2019, the company's capacity for growth is entirely dependent on the successful execution of its financial reorganization plan. The historical five-year average ROIC of -52.9% reflects the legacy of the previous business model. Future growth is predicated on a strategy to invest in return-generating companies and leverage existing assets for in-kind investments in the food sector. However, the rejection of a proposed 195 million SAR capital increase by the Extraordinary General Assembly in early 2026 presents a significant hurdle to funding these new strategic ambitions.

Profitability Dynamics

Thimar is currently in a value-destruction phase, evidenced by a massive -59.9% gap between its ROIC and its 7.02% WACC. The company reported a net loss of 13 million SAR for fiscal 2025, with accumulated losses reaching 94.7 million SAR—surpassing its total share capital. Profitability is currently influenced by non-operating items, such as a 6.76 million SAR judicial ruling against a local bank and gains from asset disposals. While the company has successfully settled approximately 70% of its reorganization plan obligations (79.8 million SAR out of 117 million SAR), it continues to struggle with negative operating cash flows of nearly 23 million SAR, highlighting the absence of a self-sustaining core business.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.56

Cost of Equity Minimum required rate of return demanded by shareholders

6.7%

WACC Weighted average cost of total debt and equity funding

6.4%

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

5.8%

Risk Factors

The risk profile is dominated by 'material uncertainty' regarding the company's ability to continue as a going concern. Although protected by the Bankruptcy Law from standard liquidation triggers, survival hinges on the successful liquidation of underutilized assets, such as the planned sale of agricultural land valued at approximately 35 million SAR. Liquidity is the primary risk; the company faces current liabilities of 30.3 million SAR against a cash balance of only 6.1 million SAR. Furthermore, the recent rejection of the capital increase and the presence of legal claims rejected by the financial trustee add layers of execution and litigation risk to an already fragile recovery path.

Governance Disclosures

Rating: B

We track 4 key governance and oversight matters for this company in our database.

Significance: 7/10 Info Asymmetry

Shareholder Rejection of Proposed Capital Increase

The Extraordinary General Assembly rejected a Board recommendation to increase the Group's capital by SAR 195 million through a rights issue. This rejection forced the Group to write off SAR 2,536,304 in transaction costs and necessitated an alternative liquidity plan involving the sale of agricultural land.

Mitigating Factors: Management has approved an alternative plan to improve liquidity through the sale of real estate assets, such as land in Al-Kharj and Riyadh.

Significance: 6/10 Entrenchment

Reduction in Board Size and Remuneration Policies

As part of a comprehensive plan to improve administrative efficiency following financial distress, the Group is reducing the number of Board of Directors members from seven to five. This restructuring includes a revision of remuneration policies for the Board, its committees, and executive management to reduce discretionary expenditures.

Mitigating Factors: The reduction in board size and remuneration was approved by the Extraordinary General Assembly.

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In-Depth Analysis