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6004
Governance: A

CATRION

CATRION Catering Holding Co.

73.60 SAR / Share

As of: May 28, 2026

19.2x P/E Ratio Trailing 12 Months
3.8x P/B Ratio Price to Book Value
3.1% Dividend Yield Annual Dividend / Share
6.04B SAR Market Cap Total Valuation
0.82 Beta Systematic Risk Index
12.8% Net Margin Net Profit / Revenue

Company Profile

CATRION Catering Holding Company is a Saudi Joint Stock Company involved in the provision of cooked and non-cooked food to private and public sectors, sky sales, and the operation and management of duty-free zones and restaurants at airports. The Group also operates central laundries. It primarily provides catering services to Saudi Arabian Airlines and other foreign airlines in major Saudi Arabian airports (Jeddah, Riyadh, Dammam, Madinah) and Cairo International Airport.

Sector Commercial and Professional Svc
Fiscal Year End 12-31
Latest Filing Annual 2025 (2026-04-01)
Shares Outstanding 82.00M
Market Cap 6.04B
Enterprise Value 6.50B
Geographic Revenue Kingdom of Saudi Arabia 97.3% | Egypt – Cairo 2.7%
Major Customers Top Customer 55.0% — Related Party

The Story

CATRION is a high-return hospitality leader transitioning from a cash-harvesting model to a strategic expansion phase through major infrastructure projects and acquisitions.

Source: Annual 2025 (2026-04-01)

Value Creation +7.8% 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
3.1%
Sustainable Growth Rate Rate at which company can grow internally using reinvested profits
-14.3%
Payout Ratio Percent of net profits distributed as dividends
60.1%
Net Margin Net profit margin generated from total operational revenue
12.8%
ROIC Return on Invested Capital
15.4%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
19.2x
P/B Ratio Market capitalization compared to corporate book value
3.8x
EV / EBITDA Operating multiple reflecting core operational leverage
88.0x
EV / SALES Asset pricing multiple relative to total topline revenue
2.7x

Growth Story

CATRION is shifting gears from a steady-state provider to an active expander. While historical sustainable growth rates were negative at -14.86% due to high dividend payouts and low historical reinvestment, current TTM Capex of 548.4 million SAR signals a major investment cycle. Revenue has climbed steadily from 2.13 billion SAR in FY 2023 to 2.44 billion SAR TTM, driven by a recovery in in-flight catering and expansion into non-airline segments. The strategic acquisition of a 55% stake in Al Khalejiah Catering Company (AKCC), completed in early 2026, further underscores a strategy to capture more of the airport and railway hospitality value chain, adding bakery and concierge services to their portfolio.

Profitability Dynamics

The company is a consistent value creator, maintaining a healthy 8.53% gap between its 5-year average ROIC of 15.97% and its WACC of 7.45%. This spread indicates that CATRION’s core operations generate returns well above the cost of capital. Despite heavy investment in the Red Sea waterfront laundry and catering units—which were capitalized as property, plant, and equipment for 801 million SAR in late 2025—the business maintains a double-digit net profit margin of 12.8%. The transition of these major projects from 'work in progress' to operational status in October 2025 is expected to begin contributing to cash flows as they serve the growing tourism infrastructure in the Kingdom.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index
0.82
Cost of Equity Minimum required rate of return demanded by shareholders
7.9%
WACC Weighted average cost of total debt and equity funding
7.5%
Debt-to-Equity Ratio Proportion of corporate funding financed by debt creditors
14.3%

Risk Factors

CATRION’s risk profile is evolving as it utilizes leverage to fund its expansion. The gearing ratio increased from 42% in FY 2024 to 94% in FY 2025, reflecting the utilization of revolving facilities to finance the Red Sea projects and working capital. While the company benefits from a relatively low relevered beta of 0.81, it faces high customer concentration, with Saudi Arabian Airlines serving as both a major shareholder and its primary customer. Additionally, approximately 70% of the 1.16 billion SAR gross trade receivables are due from government or semi-government entities. To mitigate interest rate volatility on its variable-rate debt, the Group has implemented profit rate swaps with a notional amount of 413.9 million SAR.

Governance Disclosures

Rating: A

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

Significance: 4/10 Tunneling

Key Management and Board Remuneration

Total compensation for key management personnel in 2025 was SAR 18,039,766, including short-term benefits and bonuses. Board of Directors' remuneration for the same period totaled SAR 7,427,114.

Mitigating Factors: Compensation includes accruals for long-term bonuses payable on a three-year cycle rather than an annual basis.
Significance: 4/10 Entrenchment

Abolition of Mandatory Statutory Reserve Requirement and Bylaw Amendment

The Company amended its Bylaws following a regulatory change in the Kingdom of Saudi Arabia that abolished the mandatory statutory reserve requirement (previously up to 30% of share capital). This change was approved by the Extraordinary General Meeting on October 12, 2023.

Mitigating Factors: The change was mandated by an update in the Regulations for Companies in the Kingdom of Saudi Arabia.

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