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6090

Governance: A

JAZADCO

Jazan Development and Investment Co.

8.12 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

1.3x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

406.00M SAR Market Cap Total Valuation

0.70 Beta Systematic Risk Index

-1.5% Net Margin Net Profit / Revenue

The Story

JAZADCO is a diversified agricultural and real estate enterprise striving to stabilize its operations and restructure heavy legacy liabilities amid severe working capital deficits.

Source: Q1 2026 (2026-05-19)

Value Creation -10.5% 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

+0.3%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

-1.5%

ROIC Return on Invested Capital

-3.3%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

1.3x

EV / EBITDA Operating multiple reflecting core operational leverage

34.9x

EV / SALES Asset pricing multiple relative to total topline revenue

3.7x

Growth Story

Sowing seeds in dry soil, JAZADCO has experienced a notable top-line recovery, with revenue expanding from 70.15 million SAR in FY 2023 to 78.70 million SAR in FY 2024, and surging to 107.85 million SAR in FY 2025, with TTM revenue reaching 120.22 million SAR. Despite this top-line expansion, the company's long-term growth capacity is severely constrained. The five-year average reinvestment rate is negative at -9.93%, reflecting capital divestment and the strategic closure of underperforming segments like the water bottling business. Combined with a negative five-year average ROIC of -3.25%, the sustainable growth rate stands at a minimal 0.32%, indicating that recent top-line gains are driven by cyclical recoveries in shrimp farming rather than self-sustaining capital compounding.

Profitability Dynamics

Like a leaky bucket trying to hold water, JAZADCO has historically struggled to generate economic value, illustrated by a five-year average ROIC of -3.25% against a WACC of 7.22%, creating a negative value gap of -10.48%. While TTM operating margins have turned slightly positive at 1.20% on an EBIT of 1.44 million SAR, net profitability remains negative with a TTM profit margin of -1.47% and a net loss of 1.77 million SAR. Profitability is highly sensitive to biological risks, such as the 2.54 million SAR shrimp impairment in early 2026 due to declining survival rates. Cash flow generation is further pressured by high capital expenditures, with TTM Capex of 16.83 million SAR required to maintain aquaculture infrastructure, leaving the company with limited free cash flow.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.70

Cost of Equity Minimum required rate of return demanded by shareholders

7.4%

WACC Weighted average cost of total debt and equity funding

7.2%

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

10.9%

Risk Factors

Walking a tightrope in a high wind, the company faces material going concern uncertainties, with current liabilities exceeding current assets by 104.67 million SAR as of March 2026, and accumulated losses representing 25% of its 500 million SAR share capital. Financial risk is compounded by a 100 million SAR called guarantee for Al Reef Sugar's defaulted SIDF loan, currently under a temporary bankruptcy suspension. While the company secured a 132-month installment plan for its 14.22 million SAR ZATCA zakat settlement and carries 44.39 million SAR in total debt, its low cash balance of 9.64 million SAR and operational exposure to aquaculture diseases and geopolitical feed supply disruptions present severe liquidity risks.

Governance Disclosures

Rating: A

We track 10 key governance and oversight matters for this company in our database.

Significance: 3/10 Propping

Acquisition of Fish Day Company Shares for No Consideration

The Company signed an ownership transfer agreement with the other partner in Fish Day Company for Fish Selling, under which the partner transferred their 20% ownership shares, along with all related rights and obligations, to the Group without any consideration. The transfer was completed on August 12, 2025, and resulted in a loss of SAR 978,104 recognized in accumulated losses.

Significance: 1/10 Propping

Financing Transaction with Executive Director

The Group recorded a financing transaction with Mr. Abdullah Sultan Al-Buqayshi, the Executive Director of a subsidiary company, with a transaction volume of SAR 14,375 for the year ended December 31, 2025. No transactions were recorded for the period ended March 31, 2026.

Mitigating Factors: Prices and payment terms are approved and authorized by the Group's management.

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In-Depth Analysis