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4193

Governance: C

NICE ONE

Nice One Beauty Digital Marketing Co.

13.07 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

3.9x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

1.51B SAR Market Cap Total Valuation

0.66 Beta Systematic Risk Index

-1.3% Net Margin Net Profit / Revenue

The Story

Nice One is a newly listed Saudi beauty e-commerce leader navigating a transition phase marked by regional expansion and near-term margin compression.

Source: Q1 2026 (2026-05-06)

Value Creation +15.7% 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

+185.1%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

-1.3%

ROIC Return on Invested Capital

22.8%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

3.9x

EV / EBITDA Operating multiple reflecting core operational leverage

455.3x

EV / SALES Asset pricing multiple relative to total topline revenue

1.4x

Growth Story

Nice One's growth trajectory reflects a transition from rapid domestic expansion to regional positioning. Historically, revenues climbed from 782.36 million SAR in FY 2023 to 1.02 billion SAR in FY 2025. However, the trailing twelve months (TTM) revenue of 987.65 million SAR indicates a recent slowdown, further evidenced by Q1 2026 revenues declining to 295.96 million SAR from 324.97 million SAR in Q1 2025. This domestic contraction is partially offset by international sales, which grew from 12.23 million SAR to 15.34 million SAR over the same quarterly periods. With a 5-year average reinvestment rate of 8.13% and a sustainable growth rate of 1.85%, the company's long-term growth capacity is supported by its strategic establishment of wholly-owned subsidiaries in Egypt, the UAE, and Saudi Arabia, which have yet to commence commercial operations but represent future geographic channels.

Profitability Dynamics

The company's profitability profile highlights a stark contrast between historical efficiency and current operational headwinds. Nice One boasts a strong historical 5-year average ROIC of 22.78%, creating a substantial 15.70% value gap over its WACC of 7.08%. However, recent performance shows severe margin compression, with TTM operating income falling into a loss of -5.86 million SAR (operating margin of -0.59%) and a net loss of -12.50 million SAR. This downturn is also visible in Q1 2026, where net profit dropped to 8.65 million SAR from 24.12 million SAR in Q1 2025. Profitability is currently weighed down by rising allowances for slow-moving and obsolete inventory, which increased to 17.17 million SAR by March 31, 2026, and a TTM capital expenditure of 32.11 million SAR, reflecting heavy upfront investments that have yet to yield positive TTM cash flows.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.66

Cost of Equity Minimum required rate of return demanded by shareholders

7.1%

WACC Weighted average cost of total debt and equity funding

7.1%

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

4.5%

Risk Factors

Nice One's risk profile is characterized by low formal debt but rising operational commitments and market-specific challenges. The company's latest balance sheet shows no traditional bank debt, with its 68.26 million SAR in total debt consisting entirely of lease liabilities, which is well-covered by its cash balance of 159.89 million SAR. This conservative capital structure is reflected in a low relevered beta of 0.656 and a cost of equity of 7.13%. However, operational risks are elevated by a significant increase in capital expenditure commitments, which rose to 1.40 million SAR in Q1 2026 from 83,634 SAR at the end of FY 2025. Additionally, the company faces geopolitical instability in the Middle East and rising credit risks, with its allowance for expected credit losses on trade receivables increasing to 3.40 million SAR as of March 31, 2026.

Governance Disclosures

Rating: C

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

Significance: 3/10 Tunneling

Key Management Personnel and Board Remuneration

The Group paid short-term employee benefits of SAR 1,795,163 and post-employment benefits of SAR 91,398 to key management personnel for the three-month period ended 31 March 2026. Additionally, Board and other management committees' remuneration was SAR 685,500 for the same period.

Mitigating Factors: The transactions are carried out on mutually agreed terms approved by the management of the Group.

Significance: 5/10 Tunneling

Key Management and Board Compensation

Total compensation paid to directors and other key management personnel for the nine-month period ended September 30, 2025, amounted to SAR 9,000,128. This includes SAR 7,241,108 in short-term employee benefits and SAR 2,056,500 in Board of Directors and related committees’ remunerations.

Mitigating Factors: The transactions are carried out on mutually agreed terms approved by the management of the Group.

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In-Depth Analysis