← Market Overview

4250

Governance: A

JABAL OMAR

Jabal Omar Development Co.

15.20 SAR / Share

As of: May 28, 2026

11.5x P/E Ratio Trailing 12 Months

1.1x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

17.94B SAR Market Cap Total Valuation

0.96 Beta Systematic Risk Index

74.3% Net Margin Net Profit / Revenue

The Story

Jabal Omar is a mega-scale real estate developer leveraging its irreplaceable location adjacent to the Holy Mosque in Makkah, transitioning from heavy capital-intensive development to operational hospitality and strategic land monetization.

Source: Q1 2026 (2026-05-14)

Value Creation -3.0% 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

+0.4%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

74.3%

ROIC Return on Invested Capital

4.6%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

11.5x

P/B Ratio Market capitalization compared to corporate book value

1.1x

EV / EBITDA Operating multiple reflecting core operational leverage

11.0x

EV / SALES Asset pricing multiple relative to total topline revenue

12.3x

Growth Story

The growth story of Jabal Omar is characterized by a steady expansion of its top-line performance, with revenue rising from 1,326,723,000 SAR in FY2023 to 1,901,395,000 SAR in FY2024, and reaching 2,113,857,000 SAR in FY2025. This expansion has been supported by the phased rollout of hospitality assets and strategic land sales, including the monetization of undeveloped parcels in the fifth and sixth phases. However, the company's long-term organic growth capacity remains constrained, as reflected in a low Sustainable Growth Rate of 0.36%. This low rate is a consequence of a historical 5-year average ROIC of 4.62% and a modest 5-year average reinvestment rate of 7.87%, indicating that while recent top-line growth has been bolstered by asset sales, self-funded operational growth is limited by the capital-intensive nature of completing the remaining development phases.

Profitability Dynamics

Profitability presents a dual picture of high current accounting margins alongside historical economic value destruction. The company's TTM operating margin stands at an exceptional 96.42% and its profit margin at 74.28%, heavily influenced by asset sales and valuation adjustments, as evidenced by FY2025 operating income of 2,858,171,000 SAR outstripping its revenue of 2,113,857,000 SAR. Despite these high current margins, the long-term economic reality is highlighted by a negative ROIC-to-WACC gap of -2.97%, with a 5-year average ROIC of 4.62% failing to clear its 7.59% cost of capital. This indicates that while recent cash generation has been temporarily bolstered by land monetization, the core hospitality and development operations have historically struggled to generate returns above the cost of capital.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.96

Cost of Equity Minimum required rate of return demanded by shareholders

8.5%

WACC Weighted average cost of total debt and equity funding

7.6%

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

51.1%

Risk Factors

The risk profile is dominated by a substantial debt burden of 9,169,253,000 SAR, which represents a significant portion of its 25,909,726,600 SAR enterprise value. This leverage is balanced by a cash reserve of 1,195,876,000 SAR and a relevered beta of 0.96, reflecting market-average systematic risk. While the high debt load poses refinancing and interest service risks, management's 12-month cash flow forecast projects a net positive cash flow position without material uncertainties, supporting the going concern assumption. The primary operational risk lies in the execution and funding of the remaining undeveloped phases, especially as the company has already sold off most undeveloped land parcels in the fifth and sixth phases to manage liquidity.

Governance Disclosures

Rating: A

We track 8 key governance and oversight matters for this company in our database.

Significance: 3/10 Tunneling

Related-Party Transactions Framework and Board Approval

The Group discloses that its related parties include key management personnel and entities controlled, jointly controlled, or significantly influenced by them. It states that pricing policies and terms of these transactions are approved by the Board of Directors and carried out at agreed terms.

Mitigating Factors: Pricing policies and terms are approved by the Board of Directors and transactions are conducted at agreed terms.

Significance: 3/10 Entrenchment

Statutory Reserve Reclassification

Shareholders approved the transfer of the entire statutory reserve balance of SR 108.5 million to retained earnings following changes in the Saudi Companies Law and amended By-laws.

Mitigating Factors: The transfer was approved by shareholders in an Extraordinary General Assembly Meeting in accordance with new regulations.

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

In-Depth Analysis