← Market Overview

4180

Governance: C

FITAIHI GROUP

Fitaihi Holding Group

2.41 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

1.5x P/B Ratio Price to Book Value

1.0% Dividend Yield Annual Dividend / Share

662.75M SAR Market Cap Total Valuation

0.62 Beta Systematic Risk Index

1.4% Net Margin Net Profit / Revenue

The Story

Fitaihi Group operates as a hybrid luxury retailer and investment holding entity, currently navigating operating losses in its core commercial business while experiencing significant valuation volatility in its equity and associate portfolios.

Source: Q1 2026 (2026-05-13)

Value Creation -1.5% 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

1.0%

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

-50.1%

Payout Ratio Percent of net profits distributed as dividends

1028.4%

Net Margin Net profit margin generated from total operational revenue

1.4%

ROIC Return on Invested Capital

5.4%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

1.5x

EV / EBITDA Operating multiple reflecting core operational leverage

—

EV / SALES Asset pricing multiple relative to total topline revenue

14.4x

Growth Story

Anchored in the metaphor of 'a shifting tide in a static harbor,' Fitaihi Group's revenue has shown minor fluctuations over the historical periods, moving from 45.72 million SAR in FY 2023 to 42.13 million SAR in FY 2024, before recovering slightly to 45.18 million SAR in FY 2025 and reaching 46.73 million SAR on a TTM basis. Despite this modest top-line recovery, the company's long-term growth capacity is severely constrained. The 5-year average reinvestment rate stands at a deeply negative -928.36%, reflecting a consistent divestment or return of capital rather than operational compounding. Combined with a modest 5-year average ROIC of 5.40%, the resulting sustainable growth rate is negative at -50.09%. This indicates that the company is not currently structured to drive organic, compounding growth from its operations, relying instead on the performance of its external investment holdings.

Profitability Dynamics

Under the metaphor of 'a leaky vessel sustained by external anchors,' Fitaihi's core operations are currently unprofitable, with an EBIT of -8.11 million SAR and an operating margin of -17.36% on a TTM basis. This operating deficit is a continuation of trends from FY 2024 and FY 2025, where operating income was -7.88 million SAR and -8.41 million SAR, respectively. Despite these operating losses, the company managed a positive TTM net income of 668,537 SAR (a net profit margin of 1.43%), driven by non-operating investment income. However, value creation remains negative; the company's 5-year average ROIC of 5.40% falls short of its WACC of 6.87%, resulting in a negative value creation gap of -1.47%. Profitability is highly sensitive to the performance of its associate, the International Medical Center, which contributed a loss of approximately 2.23 million SAR in the first quarter of 2026, and its equity portfolio, which suffered 28.14 million SAR in unrealized losses during the same period.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.62

Cost of Equity Minimum required rate of return demanded by shareholders

7.0%

WACC Weighted average cost of total debt and equity funding

6.9%

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

1.5%

Risk Factors

Framed by the metaphor of 'a quiet harbor facing open-ocean storms,' Fitaihi maintains a conservative balance sheet with a low debt profile, holding 10.14 million SAR in total debt against a cash balance of 2.18 million SAR. This conservative capital structure is reflected in a low relevered beta of 0.618, indicating low systemic market risk. However, the company faces significant business-specific risks. Its liquidity is heavily tied up in inventory, which stands at 95.18 million SAR (primarily jewelry and goldsmiths), representing a slow-moving asset class. Furthermore, the company is exposed to substantial market price and currency risks through its investment portfolio. Specifically, its Egyptian stock market holdings expose it to Egyptian pound exchange rate fluctuations, while its equity instruments measured through other comprehensive income saw their net book value drop from 155.16 million SAR to 127.53 million SAR in early 2026 due to market volatility.

Governance Disclosures

Rating: C

We track 7 key governance and oversight matters for this company in our database.

Significance: 2/10 Tunneling

Sales of Goods to the Chairman of the Board

The company recorded sales of goods to Sheikh Ahmad Hasan Fitaihi, the Chairman of the Board of Directors, totaling SAR 70,406 for the three-month period ended March 31, 2026, compared to SAR 83,051 for the same period in 2025. There were no outstanding balances arising from these transactions as of March 31, 2026, or December 31, 2025.

Mitigating Factors: The transactions are disclosed as being conducted without preferential terms.

Significance: 8/10 Info Asymmetry

Significant Asset Concentration in Associate Entity

The Group maintains a 19.2529% ownership interest in the International Medical Center Company, an associate entity. The book value of this investment is SAR 194,065,033, which represents approximately 39% of the Group's total assets of SAR 496,985,237.

Mitigating Factors: The investment is accounted for using the equity method, and the Group's share of the associate's business results is separately recognized in the statement of profit or loss.

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

In-Depth Analysis