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4264

Governance: D

FLYNAS

Flynas Co.

51.60 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

2.5x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

8.82B SAR Market Cap Total Valuation

1.73 Beta Systematic Risk Index

-6.7% Net Margin Net Profit / Revenue

The Story

Flynas continues to expand its regional footprint with steady revenue growth, though its fiscal 2025 bottom-line was temporarily grounded by substantial, non-recurring IPO and employee incentive expenses.

Source: Annual 2025 (2026-04-20)

Value Creation +5.4% 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

-0.1%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

-6.7%

ROIC Return on Invested Capital

15.7%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

2.5x

EV / EBITDA Operating multiple reflecting core operational leverage

8.5x

EV / SALES Asset pricing multiple relative to total topline revenue

1.5x

Growth Story

Revenue grew from SAR 7.56 billion in fiscal 2024 to SAR 7.84 billion in fiscal 2025, representing a steady 3.8% expansion. This growth was primarily driven by the core Flynas LCC segment, which generated SAR 7.09 billion in revenue, while the seasonal Flynas Hajj segment and General Aviation contributed SAR 584.4 million and SAR 173.5 million, respectively. Despite this top-line expansion, the company's 5-year average reinvestment rate stands at -0.34%, leading to a flat sustainable growth rate of -0.05%. This reflects a capital-intensive business model heavily reliant on sale and leaseback transactions to expand its fleet, alongside substantial capital commitments of SAR 36.87 billion for future aircraft purchases.

Profitability Dynamics

On paper, Flynas experienced a sharp drop in profitability in fiscal 2025, reporting an operating loss of SAR 27.02 million and a net loss of SAR 527.00 million, compared to an operating profit of SAR 1.05 billion and net income of SAR 433.51 million in fiscal 2024. However, this decline was driven by massive, non-recurring expenses: a SAR 981.92 million share-based payment charge and SAR 101.05 million in IPO transaction costs. Operationally, the company remained profitable, aided by a SAR 150 million supplier credit that reduced the cost of revenue to mitigate aircraft-on-ground events. Historically, Flynas has demonstrated strong value creation, with a 5-year average ROIC of 15.68% outperforming its WACC of 10.33%, yielding a positive value creation gap of 5.35%.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.73

Cost of Equity Minimum required rate of return demanded by shareholders

12.0%

WACC Weighted average cost of total debt and equity funding

10.3%

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

84.8%

Risk Factors

Flynas carries a highly leveraged capital structure, with total debt reaching SAR 7.47 billion in fiscal 2025, dominated by SAR 5.99 billion in lease liabilities and SAR 1.48 billion in loans. This leverage is reflected in a high relevered beta of 1.73, indicating significant market sensitivity. The company's working capital is currently negative at -SAR 1.44 billion, though liquidity is supported by SAR 4.14 billion in cash and bank deposits, alongside undrawn Murabaha and aircraft purchase facilities totaling SAR 782.2 million. Beyond financial leverage, Flynas faces operational risks, including Middle Eastern airspace closures in early 2026 that have disrupted regional routes, and the ongoing management of aircraft-on-ground exposures.

Governance Disclosures

Rating: D

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

Significance: 4/10 Tunneling

Settlement of Receivable from Former Parent

The Company held a receivable from its former parent, National Air Services (NAS Holding Company), which amounted to SAR 28,325,381 as of December 31, 2024. This balance was fully settled and reduced to Nil as of December 31, 2025. The expected credit loss provision of SAR 14 million recorded against this balance in 2024 was also reduced to Nil in 2025.

Mitigating Factors: The balance was fully settled and cleared during the year, and the related-party relationship was terminated.

Significance: 7/10 Entrenchment

Ownership Restructuring and Related Party Relationship Termination

In 2024, the shareholders of the former parent, NAS Holding Company, approved the pro-rata distribution of its entire shareholding in the Company to its own shareholders. As a result, the Company ceased to have a controlling parent, and previously disclosed related-party relationships and balances with the former parent and entities under common control were terminated.

Mitigating Factors: The distribution of shares was conducted on a pro-rata basis to the shareholders of the former parent based on their respective ownership interests.

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In-Depth Analysis