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7200

Governance: C

MIS

Al Moammar Information Systems Co.

188.50 SAR / Share

As of: May 28, 2026

76.0x P/E Ratio Trailing 12 Months

16.9x P/B Ratio Price to Book Value

3.0% Dividend Yield Annual Dividend / Share

5.66B SAR Market Cap Total Valuation

1.13 Beta Systematic Risk Index

6.3% Net Margin Net Profit / Revenue

The Story

Al Moammar Information Systems (MIS) delivers strong historical returns on capital but is currently navigating a tight liquidity squeeze characterized by negative operating cash flows and heavy reliance on short-term debt rollovers.

Source: Q1 2026 (2026-05-15)

Value Creation +9.7% 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

3.0%

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

-29.7%

Payout Ratio Percent of net profits distributed as dividends

225.9%

Net Margin Net profit margin generated from total operational revenue

6.3%

ROIC Return on Invested Capital

18.8%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

76.0x

P/B Ratio Market capitalization compared to corporate book value

16.9x

EV / EBITDA Operating multiple reflecting core operational leverage

79.1x

EV / SALES Asset pricing multiple relative to total topline revenue

5.6x

Growth Story

MIS's revenue trajectory shows a contraction from SAR 1.46 billion in FY 2023 to SAR 1.21 billion in FY 2024, followed by a recovery to SAR 1.27 billion in FY 2025, and settling at a TTM level of SAR 1.18 billion. This fluctuating top-line performance is coupled with a negative 5-year average reinvestment rate of -158.14%, reflecting substantial capital distributions rather than internal retention. Consequently, the company's calculated sustainable growth rate stands at -29.68%. Despite this negative theoretical growth capacity, MIS continues to expand its operational footprint through new subsidiaries, including its SAMA-permitted Buy Now Pay Later financing arm and medical technology ventures, aiming to capture long-term digital transformation demand in the Kingdom.

Profitability Dynamics

Profitability at MIS remains fundamentally robust on a return-on-capital basis, with a 5-year average ROIC of 18.77% comfortably outperforming its WACC of 9.05%, creating a positive value gap of 9.71%. However, operating margins have compressed, with the TTM operating margin at 6.47% (EBIT of SAR 76.45 million) and net profit margin at 6.29% (Net Income of SAR 74.38 million), down from an operating income of SAR 128.60 million in FY 2024. This margin pressure is exacerbated by severe working capital constraints. The company's project-based model, heavily tied to government contracts, has led to delayed collections, resulting in negative operating cash flows and a current liability shortfall where current liabilities exceed current assets by SAR 347 million as of Q1 2026.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.13

Cost of Equity Minimum required rate of return demanded by shareholders

9.3%

WACC Weighted average cost of total debt and equity funding

9.1%

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

19.8%

Risk Factors

The primary risk for MIS lies in its aggressive capital structure and liquidity management. The company carries SAR 1.12 billion in short-term debt against only SAR 146.93 million in cash. This high leverage is compounded by the fact that MIS is currently in non-compliance with certain bank loan covenants, which theoretically could trigger immediate repayment demands. Because its financing is primarily short-term (maturities of 1 to 12 months) while its project lifecycles are long-term, MIS is highly dependent on the continuous rollover of its Murabaha and conventional credit facilities. While the risk of customer default is mitigated by the fact that the vast majority of its trade receivables (SAR 757.55 million) and contract assets (SAR 1.29 billion) are due from government entities, any disruption in bank rollovers or further delays in government collections poses a material threat to its going-concern status.

Governance Disclosures

Rating: C

We track 7 key governance and oversight matters for this company in our database.

Significance: 5/10 Info Asymmetry

Related-Party Transactions and Balances with Associate Edarat

The Group engaged in transactions with its associate, Edarat Telecommunication and Information Technology Company, during the three-month period ended 31 March 2026. These transactions included purchases of SAR 17,723,998 and no revenue. As of 31 March 2026, the outstanding payable balance due to Edarat was SAR 25,464,941, down from SAR 38,558,746 as of 31 December 2025.

Mitigating Factors: The terms of those transactions are approved by the management/Board of Directors in the ordinary course of business.

Significance: 6/10 Info Asymmetry

Related Party Transactions with Associate (Edarat)

The company engaged in substantial transactions with its associate, Edarat Telecommunication and Information Technology Company. Purchases from the associate totaled SR 79.9 million in 2025, compared to revenue of only SR 1.6 million from the same entity.

Mitigating Factors: The terms of these transactions are approved by management or the Board of Directors in the ordinary course of business.

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In-Depth Analysis