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4161
Governance: B

BINDAWOOD

BinDawood Holding Co.

4.93 SAR / Share

As of: May 28, 2026

20.8x P/E Ratio Trailing 12 Months
3.7x P/B Ratio Price to Book Value
2.8% Dividend Yield Annual Dividend / Share
5.63B SAR Market Cap Total Valuation
0.77 Beta Systematic Risk Index
4.3% Net Margin Net Profit / Revenue

Company Profile

BinDawood Holding Company is a Saudi Joint Stock Company primarily engaged in the retail trading of foodstuff and household items through its BinDawood and Danube brands. The Group also operates pharmacies under the Zahrat Al Rawdah brand and provides information technology, communication, delivery, storage, and digital marketing services. Its revenue model is based on retail in-store sales, pharmacies, e-commerce, and influencer marketing services. The company is listed on the Saudi Stock Exchange (Tadawul) and is majority-owned by Akasiya Star Trading Company.

Sector Consumer Staples Distribution and Retail
Fiscal Year End 12-31
Latest Filing Annual 2025 (2026-04-12)
Shares Outstanding 1.14B
Market Cap 5.63B
Enterprise Value 8.16B
Geographic Revenue Kingdom of Saudi Arabia 90.0%
Major Customers Top Customer 32.3% — Independent

The Story

BinDawood is a diversified retail powerhouse transitioning from a traditional grocery chain into a multi-sector ecosystem spanning food, health, and digital services.

Source: Annual 2025 (2026-04-12)

Value Creation +0.9% 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
2.8%
Sustainable Growth Rate Rate at which company can grow internally using reinvested profits
-11.5%
Payout Ratio Percent of net profits distributed as dividends
59.2%
Net Margin Net profit margin generated from total operational revenue
4.3%
ROIC Return on Invested Capital
7.5%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
20.8x
P/B Ratio Market capitalization compared to corporate book value
3.7x
EV / EBITDA Operating multiple reflecting core operational leverage
8.9x
EV / SALES Asset pricing multiple relative to total topline revenue
1.3x

Growth Story

Revenue reached 6.35 billion SAR in fiscal 2025, representing a significant climb from 5.68 billion SAR in fiscal 2024 and 5.60 billion SAR in fiscal 2023. This growth is increasingly driven by an aggressive inorganic strategy, highlighted by the 100% acquisition of Zahrat Al Rawdah Pharmacies and a 51% stake in Toy Triangle. While the historical five-year average reinvestment rate is -1.54, reflecting a legacy of returning capital to shareholders in excess of internal needs, the recent pivot toward acquisitions and the launch of the Saudi Convenience Company joint venture signal a new phase of expansion. Although the mathematical sustainable growth rate is negative due to past payout levels, the current trajectory shows a company actively deploying capital to capture market share in adjacent retail verticals.

Profitability Dynamics

BinDawood continues to be a value creator, maintaining a five-year average ROIC of 8.45% against a WACC of 7.21%, resulting in a positive spread of 1.24%. Operating margins for the TTM period stood at 6.23%, with a net profit margin of 4.25%. The profitability story is currently defined by the integration of higher-margin segments; for instance, the newly acquired pharmacy business contributed 41 million SAR in profit in just two months of consolidation. While the group generated 270 million SAR in net income TTM, the focus remains on optimizing the cost of sales, which accounted for 3.94 billion SAR, and managing the 1.42 billion SAR in selling and distribution expenses associated with its expanding store network.

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
7.7%
WACC Weighted average cost of total debt and equity funding
6.6%
Debt-to-Equity Ratio Proportion of corporate funding financed by debt creditors
50.0%

Risk Factors

The company's risk profile has shifted toward higher leverage to fund its expansion, with total debt reaching 2.81 billion SAR. This includes a new 400 million SAR Sharia-compliant facility specifically for the pharmacy acquisition. Lease liabilities remain a core structural risk, totaling 2.50 billion SAR as the company maintains long-term commitments for its retail outlets. With a Beta of 0.998, the business is closely tied to broader market volatility. Furthermore, the 'value in use' assessments for subsidiaries like IATC and Zahrat rely on high growth assumptions—up to 54.6% in some cases—meaning any failure to meet these targets could lead to future goodwill impairments, which currently total 594.9 million SAR on the balance sheet.

Governance Disclosures

Rating: B

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

Significance: 2/10 Tunneling

Shared Service Fees Paid to BinDawood Investment Company

The Group paid SAR 1,032,316 in shared service fees to BinDawood Investment Company, which is under common ownership of the Group's shareholder.

Mitigating Factors: Terms and conditions of these transactions are approved by the Board of Directors.
Significance: 2/10 Info Asymmetry

Procurement of Goods from Safa Company Limited

The Group purchased goods totaling SAR 3,125,498 from Safa Company Limited for Household Ware, an entity under common ownership of the Group's shareholder.

Mitigating Factors: Terms and conditions of these transactions are approved by the Board of Directors.

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