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4240

Governance: D

CENOMI RETAIL

AFG International Co.

13.37 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

— P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

1.53B SAR Market Cap Total Valuation

3.12 Beta Systematic Risk Index

-10.6% Net Margin Net Profit / Revenue

The Story

CENOMI RETAIL (rebranded as AFG International Company) is a major Saudi retail operator facing severe capital structure distress, negative operating profitability, and a massive going-concern deficit, currently relying on Al Futtaim Group's financial life support to execute a sweeping operational turnaround.

Source: Q1 2026 (2026-05-13)

Value Creation -11.9% 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

—

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

-1.6%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

-10.6%

ROIC Return on Invested Capital

-3.7%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

—

EV / EBITDA Operating multiple reflecting core operational leverage

1456.1x

EV / SALES Asset pricing multiple relative to total topline revenue

1.4x

Growth Story

The company's revenue trajectory reflects a deliberate contraction and restructuring, with TTM revenue at 5.14 billion SAR, slightly up from 5.10 billion SAR in FY 2025 but down from 5.92 billion SAR in FY 2022. This decline is driven by the strategic rationalization of underperforming brands and store optimization. The company's long-term growth capacity is severely constrained, as evidenced by a negative 5-year average ROIC of -3.73% and a negative sustainable growth rate of -1.58%, despite a 5-year average reinvestment rate of 42.29%. Growth is no longer about expansion, but about survival and pruning unprofitable segments to stabilize the top line.

Profitability Dynamics

Profitability is the company's primary battleground. The TTM operating margin stands at -2.49% with an EBIT of -128.10 million SAR, and the net margin is deeply negative at -10.63% (net loss of 545.86 million SAR). The company fails to create economic value, with a 5-year average ROIC of -3.73% compared to a WACC of 8.13%, resulting in a negative value creation gap of -11.87%. This persistent destruction of capital has led to accumulated losses of 2.16 billion SAR as of March 2026, meaning the business is currently consuming cash rather than generating free cash flows to support its enterprise value of 7.16 billion SAR.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

3.12

Cost of Equity Minimum required rate of return demanded by shareholders

18.3%

WACC Weighted average cost of total debt and equity funding

8.1%

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

380.1%

Risk Factors

The risk profile is exceptionally high, characterized by a severe capital deficit where total liabilities exceed total assets by 1.53 billion SAR and current liabilities exceed current assets by 1.55 billion SAR. The company's latest total debt stands at 5.83 billion SAR against a cash balance of only 207.33 million SAR. This leverage is reflected in a high relevered beta of 3.12 and a steep cost of equity of 18.27%. The company's survival is entirely dependent on its major shareholder, Al Futtaim Private Company LLC, which has provided a 1.41 billion SAR shareholder loan and corporate guarantees for its 1.57 billion SAR Emirates NBD bank facility. Additionally, geopolitical tensions in the Gulf region present ongoing supply chain and cost risks.

Governance Disclosures

Rating: D

We track 12 key governance and oversight matters for this company in our database.

Significance: 6/10 Tunneling

Guarantee Fee Paid to Intermediate Parent

The Company's SAR 1,600 million credit facility with Emirates NBD Bank is secured by a corporate guarantee from Al Futtaim Private Company LLC. In connection with this guarantee, the Company accrued a guarantee fee of SAR 8,340,263 to Al Futtaim Private Company LLC during the three-month period ended 31 March 2026.

Mitigating Factors: Transactions are entered into with related parties on terms and conditions approved by either the Group’s management or its Board of Directors.

Significance: 9/10 Propping

Shareholder's Loan from Intermediate Parent

The Company has an outstanding shareholder's loan of SAR 1,407,765,877 as of 31 March 2026 from Al Futtaim Private Company LLC. The loan carries an interest rate of 3-month SAIBOR plus 3.6%, with interest capitalized quarterly, and includes an option to convert the loan into equity. Accrued interest for the three-month period ended 31 March 2026 was SAR 29,289,316.

Mitigating Factors: The transactions are entered into on terms approved by either management or the Board of Directors, and the equity conversion option is subject to regulatory and shareholder approvals.

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In-Depth Analysis