Telecommunication Services
Industry Overview
Cohort medians and aggregates on this site are a three-company basis: stc (7010), Mobily (7020) and Zain KSA (7030). Etihad Atheeb Telecom (GO, 7040) is excluded because it reports on a 31 March fiscal year end, which is not comparable to the 31 December year end used by the other three without restating its accounts. Any reference to a “sector median” here means the median of those three companies, not of the full Tadawul telecom index.
Companies
The financial picture
Sector context
Three licensed mobile network operators serve a population of roughly 35 million under CST regulation, all three listed on the Tadawul Main Market with full IFRS-KSA disclosure and quarterly reporting. This is an oligopoly with high fixed-asset intensity, so the analytical question is not top-line growth — aggregate revenue compounded at 6.2% a year from FY2018 to FY2025 with no year of contraction — but whether capital deployed into 5G, fibre and adjacent digital businesses earns above its cost. Aggregate EBITDA margin fell from 38.1% in FY2018 to 33.3% in FY2025, a 4.8 point compression driven by device cost of sales rising from 7.2% to 15.7% of revenue as the mix shifted toward handset and equipment resale, which carries structurally lower margin than connectivity.
The Saudi telecom cohort generated SAR 108.4bn of revenue in FY2025 on an aggregate ROIC of 12.6% against an aggregate WACC of 5.9% — a +6.7 point spread that makes the sector, in aggregate, comfortably value-creating. That aggregate hides the only comparison that matters: stc contributes 72% of cohort revenue and 79% of cohort NOPAT, so the sector number is very close to stc's own. Read company by company, the cohort splits three ways — stc creates value at scale with deteriorating cash conversion, Mobily creates value on an improving trend with the cleanest cash conversion in the cohort, and Zain KSA destroys it.
Value creation
Each band is one operator; the height of the column is the sector.
Sector revenue grew 52% between FY2018 and FY2025, and no year went backwards. The striking thing is how little the shape changed. stc still supplies 71.8% of cohort revenue, down only a point from 72.8%. Mobily grew fastest at 65.5% and gained about 1.5 points of share. This is a stable oligopoly, not a market being reordered.
Return on invested capital, company by company. Higher is better, and the spread between the lines is the real story of the sector.
Three completely different trajectories. Mobily climbed from 3.4% to 11.0%, the only sustained improvement in the cohort. stc fell from 17.1% to a 10.8% trough in FY2024 before recovering to 14.5%. Zain KSA has gone nowhere, ending at 4.7% against 5.8% eight years earlier.
EBITDA margin is operating profit before depreciation, as a share of revenue — a rough measure of how much of each riyal of sales survives the cost of running the business.
Two of the three are compressing. Zain KSA lost 8.5 points and stc 5.9, both squeezed by handset resale, which sells at far lower margin than connectivity. Mobily is the exception, adding 1.6 points to 39.8% — now the highest in the cohort.
Cohort benchmark table
| FY2025 | stc | Mobily | Zain KSA | Cohort median |
|---|---|---|---|---|
| Current ratio | 1.4x | 0.9x | 1.3x | 1.3x |
| Quick ratio | 1.4x | 0.9x | 1.3x | 1.3x |
| Debt-to-equity | 17.6% | 28.2% | 78.7% | 28.2% |
| Interest coverage | 24.0x | 15.3x | 6.1x | 15.3x |
| Days sales outstanding | 131 | 114 | 168 | 131 |
| Cash conversion cycle | -40 | -55 | -206 | -55 |
| Capex % of revenues | 15.2% | 16.4% | 2.3% | 15.2% |
| Gross margin | 48.7% | 54.7% | 59.9% | 54.7% |
| EBITDA margin | 31.9% | 39.8% | 31.7% | 31.9% |
| EBIT margin | 18.7% | 20.5% | 12.0% | 18.7% |
| Net margin | 19.5% | 17.6% | 5.5% | 17.6% |
| Return on assets | 9.6% | 8.2% | 2.1% | 8.2% |
| Return on equity | 17.6% | 17.1% | 5.6% | 17.1% |
| Return on invested capital | 14.5% | 11.0% | 4.7% | 11.0% |
| WACC | 9.3% | 6.0% | 6.2% | 6.2% |
| P/E | 14.1x | 14.6x | 15.5x | 14.6x |
| EV/EBITDA | 8.8x | 7.3x | 5.4x | 7.3x |
| Dividend yield | 9.8% | 3.8% | 0.0% | 3.8% |
Medians are three-company medians for FY2025. Every formula behind these figures is shown on the individual company pages.
Sector risks
Device cost of sales has risen from 7.2% to 15.7% of aggregate revenue since FY2018. If the mix shift continues at the same pace, a further 3–4 points of EBITDA margin is at risk across the cohort regardless of connectivity pricing.
Aggregate receivables stood at 131 days of sales in FY2025 versus 133 in FY2018 — flat at cohort level, but the dispersion has widened sharply, with Zain KSA deteriorating from 93 to 168 days. Cohort-level stability is masking a single-company problem.
What the evidence shows
Where the evidence points, stated as findings rather than as a call. Mobily is the only company in the cohort whose ROIC−WACC spread is both positive and still widening while leverage falls: ROIC rose from 3.4% to 11.0% across the window as debt-to-equity fell from 0.94x to 0.28x. stc is the largest value-creator in absolute terms at a +5.2 point spread, but returned SAR 21,398mn of dividends against SAR 6,488mn of free cash flow in FY2025, a cover of 0.30x. Zain KSA has cleared its cost of capital in one year out of eight, even after shedding 8,069 towers to a PIF-led consortium in 2023 — a disposal that removed the most capital-intensive part of its asset base without lifting returns. No investment recommendation is offered on this site.
Share price performance
Performance summary
| 2018–2025 | First close | Last close | Total | Annualised | Max drawdown | Volatility | Best year | Worst year |
|---|---|---|---|---|---|---|---|---|
| stc | 27.27 | 42.98 | +58% | +5.9% | -40% | 21% | 2018 +35% | 2022 -21% |
| Mobily | 16.10 | 66.00 | +310% | +19.3% | -31% | 28% | 2019 +51% | 2018 +3% |
| Zain KSA | 7.34 | 10.43 | +42% | +4.5% | -40% | 29% | 2019 +42% | 2024 -27% |
| TASI | 7,194.15 | 10,490.69 | +46% | +4.8% | -36% | 15% | 2021 +30% | 2025 -13% |
Total and annualised returns are price returns from the first to the last close in the series. Max drawdown is the largest peak-to-trough decline on closing prices. Volatility is the annualised standard deviation of daily returns (252 trading days). Calendar-year returns are measured close-to-close across the year boundary.
Commentary
Over the eight years to 31 December 2025, Mobily was the strongest performer in the cohort, rising +310% from SAR 16.10 to SAR 66.00, an annualised +19.3%. Zain KSA was the weakest at +42% in total, or +4.5% a year. The TASI returned +46% over the same period (+4.8% annualised), so on price alone Mobily and stc outperformed the index.
Drawdowns separate the cohort as sharply as returns do. Mobily fell 31% peak-to-trough at its worst point against 40% for Zain KSA, on annualised volatility of 28% and 29% respectively. The single best calendar year in the cohort was Mobily in 2019 at +51%; the worst was Zain KSA in 2024 at -27%.
These are price series only. They say nothing about whether the underlying businesses earned their cost of capital over the same period — that comparison is on the ROIC & WACC tab, and the two do not line up neatly.
Daily closing prices as recorded in the model workbook, covering 2 January 2018 to 31 December 2025. The rebased chart sets every series to 100 at the first trading day so relative performance is comparable across shares that trade at very different absolute levels; the second chart shows actual closing prices in Saudi Riyals. Prices are not adjusted for dividends, so the rebased lines understate total return — materially so for stc, which paid a dividend in every year of the window, and least so for Zain KSA, which paid none in five of the eight years. No daily move in any series exceeds the ±10% Tadawul limit, so the series contains no unadjusted corporate-action gap. Where shares outstanding changed materially, this is flagged under Data checks below.
Data checks
- stc, FY2022. Shares outstanding moved from 1,997,149,000 to 4,982,178,000, a change of +149%, while the year-end closing price moved -18.6%. Earnings, book value and dividends per share — and every price multiple built on them — are not comparable across that boundary, and the daily price series above contains no corresponding adjustment. Worth confirming against the issuer's corporate-action history before reading the periods either side of it as one continuous series.
- Zain KSA, FY2020. Shares outstanding moved from 583,729,175 to 898,729,175, a change of +54%, while the year-end closing price moved +13.8%. Earnings, book value and dividends per share — and every price multiple built on them — are not comparable across that boundary, and the daily price series above contains no corresponding adjustment. Worth confirming against the issuer's corporate-action history before reading the periods either side of it as one continuous series.
Aggregate Income Statement — SAR millions unless stated
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| Net Revenues | 71,359 | 76,204 | 80,916 | 85,743 | 92,176 | 98,422 | 104,465 | 108,444 |
| Network Access Charges | 7,083 | 7,216 | 7,690 | 8,193 | 8,028 | 13,109 | 12,248 | 15,039 |
| Government Charges | 6,211 | 4,642 | 5,472 | 8,248 | 7,999 | 7,069 | 7,927 | 8,094 |
| Cost of Devices | 5,105 | 10,754 | 11,397 | 11,528 | 12,861 | 15,719 | 17,196 | 17,036 |
| Other Costs of Revenues | 7,064 | 4,057 | 5,198 | 6,619 | 7,097 | 7,276 | 7,542 | 7,334 |
| Salaries & Wages | 2,968 | 3,059 | 3,338 | 3,570 | 3,947 | 5,247 | 5,697 | 5,737 |
| Gross Profits | 42,927 | 46,476 | 47,820 | 47,584 | 52,244 | 50,002 | 53,856 | 55,204 |
| Employee Costs & Benefits | 6,984 | 7,473 | 7,813 | 8,225 | 8,808 | 9,206 | 10,092 | 10,555 |
| Marketing & Advertising Expenses | 1,852 | 2,298 | 2,197 | 1,826 | 2,406 | 2,638 | 2,674 | 3,351 |
| General & Administrative Expenses | 4,279 | 4,200 | 4,237 | 3,691 | 4,324 | 4,328 | 3,934 | 3,960 |
| Other Expenses | 2,833 | 2,916 | 3,076 | 3,168 | 3,853 | 2,638 | 5,843 | 2,403 |
| Other Income | (215) | (103) | (652) | (875) | (268) | (2,552) | (706) | (1,143) |
| EBITDA | 27,194 | 29,692 | 31,148 | 31,549 | 33,120 | 33,742 | 32,019 | 36,079 |
| Depreciation | 11,270 | 12,763 | 13,283 | 13,615 | 13,253 | 12,058 | 11,946 | 12,045 |
| Amortization | 2,412 | 2,629 | 2,767 | 2,688 | 2,825 | 3,130 | 3,532 | 4,117 |
| EBIT | 13,512 | 14,300 | 15,098 | 15,246 | 17,041 | 18,554 | 16,541 | 19,916 |
| Interest and Finance Charges | 2,129 | 2,380 | 1,773 | 1,314 | 1,586 | 2,201 | 2,281 | 2,117 |
| Interest on Lease Liabilities | 0 | 359 | 310 | 299 | 291 | 276 | 303 | 363 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | (617) | (710) | (446) | (384) | (659) | (1,715) | (1,925) | (1,494) |
| EBT | 12,000 | 12,271 | 13,461 | 14,017 | 15,823 | 17,792 | 15,882 | 18,930 |
| Taxes | 23 | 21 | 16 | 21 | 29 | 61 | 65 | 92 |
| Zakat | 687 | 809 | 1,216 | 1,116 | 1,201 | 1,571 | 1,171 | (422) |
| Net Profits | 11,290 | 11,441 | 12,228 | 12,881 | 14,594 | 16,159 | 14,646 | 19,259 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | (759) | (13,973) | 54 |
| Net Profits | 11,290 | 11,441 | 12,228 | 12,881 | 14,594 | 16,918 | 28,619 | 19,205 |
Sum of stc, Mobily and Zain KSA. Not a market total — see cohort note.
Common-Size P&L — % of aggregate net revenues
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| Net Revenues | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Network Access Charges | 9.9% | 9.5% | 9.5% | 9.6% | 8.7% | 13.3% | 11.7% | 13.9% |
| Government Charges | 8.7% | 6.1% | 6.8% | 9.6% | 8.7% | 7.2% | 7.6% | 7.5% |
| Cost of Devices | 7.2% | 14.1% | 14.1% | 13.4% | 14.0% | 16.0% | 16.5% | 15.7% |
| Other Costs of Revenues | 9.9% | 5.3% | 6.4% | 7.7% | 7.7% | 7.4% | 7.2% | 6.8% |
| Salaries & Wages | 4.2% | 4.0% | 4.1% | 4.2% | 4.3% | 5.3% | 5.5% | 5.3% |
| Gross Profits | 60.2% | 61.0% | 59.1% | 55.5% | 56.7% | 50.8% | 51.6% | 50.9% |
| Employee Costs & Benefits | 9.8% | 9.8% | 9.7% | 9.6% | 9.6% | 9.4% | 9.7% | 9.7% |
| Marketing & Advertising Expenses | 2.6% | 3.0% | 2.7% | 2.1% | 2.6% | 2.7% | 2.6% | 3.1% |
| General & Administrative Expenses | 6.0% | 5.5% | 5.2% | 4.3% | 4.7% | 4.4% | 3.8% | 3.7% |
| Other Expenses | 4.0% | 3.8% | 3.8% | 3.7% | 4.2% | 2.7% | 5.6% | 2.2% |
| Other Income | (0.3%) | (0.1%) | (0.8%) | (1.0%) | (0.3%) | (2.6%) | (0.7%) | (1.1%) |
| EBITDA | 38.1% | 39.0% | 38.5% | 36.8% | 35.9% | 34.3% | 30.7% | 33.3% |
| Depreciation | 15.8% | 16.7% | 16.4% | 15.9% | 14.4% | 12.3% | 11.4% | 11.1% |
| Amortization | 3.4% | 3.4% | 3.4% | 3.1% | 3.1% | 3.2% | 3.4% | 3.8% |
| EBIT | 18.9% | 18.8% | 18.7% | 17.8% | 18.5% | 18.9% | 15.8% | 18.4% |
| Interest and Finance Charges | 3.0% | 3.1% | 2.2% | 1.5% | 1.7% | 2.2% | 2.2% | 2.0% |
| Interest on Lease Liabilities | 0.0% | 0.5% | 0.4% | 0.3% | 0.3% | 0.3% | 0.3% | 0.3% |
| Others | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Interest Income | (0.9%) | (0.9%) | (0.6%) | (0.4%) | (0.7%) | (1.7%) | (1.8%) | (1.4%) |
| EBT | 16.8% | 16.1% | 16.6% | 16.3% | 17.2% | 18.1% | 15.2% | 17.5% |
| Taxes | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.1% | 0.1% |
| Zakat | 1.0% | 1.1% | 1.5% | 1.3% | 1.3% | 1.6% | 1.1% | (0.4%) |
| Net Profits | 15.8% | 15.0% | 15.1% | 15.0% | 15.8% | 16.4% | 14.0% | 17.8% |
| Discontinued Operations | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | (0.8%) | (13.4%) | 0.0% |
| Net Profits | 15.8% | 15.0% | 15.1% | 15.0% | 15.8% | 17.2% | 27.4% | 17.7% |
Aggregate Balance Sheet — SAR millions unless stated
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | 10,603 | 10,440 | 11,037 | 9,844 | 18,998 | 15,959 | 17,783 | 17,489 |
| Trade and other receivables | 22,973 | 29,296 | 25,994 | 37,223 | 36,287 | 34,041 | 36,901 | 41,200 |
| Inventory | 1,313 | 2,613 | 1,781 | 1,592 | 1,583 | 2,482 | 2,672 | 2,478 |
| Other Current Assets | 24,767 | 12,409 | 16,913 | 14,675 | 20,808 | 34,622 | 32,220 | 15,419 |
| Total Current Assets | 59,656 | 54,758 | 55,725 | 63,334 | 77,675 | 87,104 | 89,576 | 76,586 |
| Property, plant and equipment | 70,227 | 72,817 | 76,025 | 74,225 | 71,078 | 72,450 | 65,343 | 68,302 |
| Right of Use Assets | 0 | 6,715 | 6,499 | 7,013 | 6,523 | 7,466 | 5,169 | 6,378 |
| Intangible Assets | 33,076 | 33,079 | 33,377 | 32,622 | 32,585 | 34,280 | 32,968 | 36,371 |
| Goodwill | 1,542 | 1,610 | 1,610 | 1,585 | 1,765 | 4,282 | 2,541 | 2,517 |
| Deferred tax Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Others | 12,335 | 16,301 | 15,311 | 16,242 | 15,719 | 20,333 | 31,692 | 38,532 |
| Total Noncurrent Assets | 117,181 | 130,522 | 132,821 | 131,686 | 127,670 | 138,812 | 137,712 | 152,099 |
| Total Assets | 176,837 | 185,281 | 188,546 | 195,020 | 205,345 | 225,915 | 227,289 | 228,685 |
| Trade and other payables | 7,427 | 10,426 | 8,515 | 8,224 | 9,560 | 8,091 | 9,841 | 11,691 |
| Short-term Loans & Borrowings | 3,881 | 1,546 | 1,668 | 6,528 | 2,651 | 11,113 | 6,816 | 1,550 |
| Short-term Leases | 0 | 1,733 | 1,830 | 2,061 | 2,032 | 2,343 | 1,993 | 1,972 |
| Other Current Liabilities | 39,635 | 34,786 | 40,968 | 38,130 | 42,698 | 45,352 | 43,499 | 42,564 |
| Total Current Liabilities | 50,943 | 48,491 | 52,982 | 54,943 | 56,943 | 66,900 | 62,150 | 57,777 |
| Indemnity Provision | 4,439 | 5,356 | 5,849 | 6,115 | 5,534 | 5,990 | 5,965 | 5,973 |
| Long-term Loans & Borrowings | 23,621 | 26,858 | 22,608 | 20,108 | 23,695 | 26,874 | 22,699 | 27,929 |
| Long-term Leases | 0 | 5,134 | 5,139 | 5,755 | 5,165 | 6,389 | 4,935 | 5,789 |
| Deferred tax liability | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-current Liabilities | 13,290 | 18,533 | 13,526 | 12,477 | 11,824 | 10,033 | 9,472 | 13,627 |
| Total Noncurrent Liabilities | 41,351 | 55,880 | 47,122 | 44,456 | 46,218 | 49,286 | 43,071 | 53,318 |
| Total Liabilities | 92,294 | 104,371 | 100,104 | 99,399 | 103,161 | 116,186 | 105,221 | 111,095 |
| Share capital | 33,537 | 33,537 | 36,687 | 36,687 | 66,687 | 66,687 | 66,687 | 66,687 |
| Reserves | 10,697 | 9,710 | 9,073 | 14,098 | 16,167 | 5,078 | 1,505 | 1,607 |
| Retained Earnings | 39,161 | 36,369 | 41,660 | 43,008 | 17,507 | 36,046 | 51,324 | 46,886 |
| Other Equity | 1,148 | 1,292 | 1,021 | 1,829 | 1,822 | 1,918 | 2,551 | 2,410 |
| Total Equity | 84,543 | 80,909 | 88,441 | 95,622 | 102,184 | 109,729 | 122,067 | 117,590 |
| Total Liabilities and Equity | 176,837 | 185,281 | 188,546 | 195,020 | 205,345 | 225,915 | 227,289 | 228,685 |
| Match Check | match | match | match | match | match | match | match | match |
Common-Size Balance Sheet — % of total assets
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | 6.0% | 5.6% | 5.9% | 5.0% | 9.3% | 7.1% | 7.8% | 7.6% |
| Trade and other receivables | 13.0% | 15.8% | 13.8% | 19.1% | 17.7% | 15.1% | 16.2% | 18.0% |
| Inventory | 0.7% | 1.4% | 0.9% | 0.8% | 0.8% | 1.1% | 1.2% | 1.1% |
| Other Current Assets | 14.0% | 6.7% | 9.0% | 7.5% | 10.1% | 15.3% | 14.2% | 6.7% |
| Total Current Assets | 33.7% | 29.6% | 29.6% | 32.5% | 37.8% | 38.6% | 39.4% | 33.5% |
| Property, plant and equipment | 39.7% | 39.3% | 40.3% | 38.1% | 34.6% | 32.1% | 28.7% | 29.9% |
| Right of Use Assets | 0.0% | 3.6% | 3.4% | 3.6% | 3.2% | 3.3% | 2.3% | 2.8% |
| Intangible Assets | 18.7% | 17.9% | 17.7% | 16.7% | 15.9% | 15.2% | 14.5% | 15.9% |
| Goodwill | 0.9% | 0.9% | 0.9% | 0.8% | 0.9% | 1.9% | 1.1% | 1.1% |
| Deferred tax Assets | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Others | 7.0% | 8.8% | 8.1% | 8.3% | 7.7% | 9.0% | 13.9% | 16.8% |
| Total Noncurrent Assets | 66.3% | 70.4% | 70.4% | 67.5% | 62.2% | 61.4% | 60.6% | 66.5% |
| Total Assets | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Trade and other payables | 4.2% | 5.6% | 4.5% | 4.2% | 4.7% | 3.6% | 4.3% | 5.1% |
| Short-term Loans & Borrowings | 2.2% | 0.8% | 0.9% | 3.3% | 1.3% | 4.9% | 3.0% | 0.7% |
| Short-term Leases | 0.0% | 0.9% | 1.0% | 1.1% | 1.0% | 1.0% | 0.9% | 0.9% |
| Other Current Liabilities | 22.4% | 18.8% | 21.7% | 19.6% | 20.8% | 20.1% | 19.1% | 18.6% |
| Total Current Liabilities | 28.8% | 26.2% | 28.1% | 28.2% | 27.7% | 29.6% | 27.3% | 25.3% |
| Indemnity Provision | 2.5% | 2.9% | 3.1% | 3.1% | 2.7% | 2.7% | 2.6% | 2.6% |
| Long-term Loans & Borrowings | 13.4% | 14.5% | 12.0% | 10.3% | 11.5% | 11.9% | 10.0% | 12.2% |
| Long-term Leases | 0.0% | 2.8% | 2.7% | 3.0% | 2.5% | 2.8% | 2.2% | 2.5% |
| Deferred tax liability | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Other Non-current Liabilities | 7.5% | 10.0% | 7.2% | 6.4% | 5.8% | 4.4% | 4.2% | 6.0% |
| Total Noncurrent Liabilities | 23.4% | 30.2% | 25.0% | 22.8% | 22.5% | 21.8% | 19.0% | 23.3% |
| Total Liabilities | 52.2% | 56.3% | 53.1% | 51.0% | 50.2% | 51.4% | 46.3% | 48.6% |
| Share capital | 19.0% | 18.1% | 19.5% | 18.8% | 32.5% | 29.5% | 29.3% | 29.2% |
| Reserves | 6.0% | 5.2% | 4.8% | 7.2% | 7.9% | 2.2% | 0.7% | 0.7% |
| Retained Earnings | 22.1% | 19.6% | 22.1% | 22.1% | 8.5% | 16.0% | 22.6% | 20.5% |
| Other Equity | 0.6% | 0.7% | 0.5% | 0.9% | 0.9% | 0.8% | 1.1% | 1.1% |
| Total Equity | 47.8% | 43.7% | 46.9% | 49.0% | 49.8% | 48.6% | 53.7% | 51.4% |
| Total Liabilities and Equity | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
Cash Flow Summary — SAR millions unless stated
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| Beginning Cash Balance | 4,874 | 10,603 | 10,440 | 11,037 | 9,844 | 18,998 | 15,959 | 17,783 |
| Net Cash From Operating Activities | 24,343 | 16,755 | 36,523 | 17,524 | 33,950 | 29,886 | 28,381 | 26,714 |
| Net Cash From Investing Activities | (8,195) | (5,904) | (22,121) | (5,716) | (13,329) | (28,782) | (9,763) | 569 |
| Net Cash From Financing Activities | (10,419) | (11,015) | (13,806) | (13,001) | (11,468) | (4,143) | (16,793) | (27,577) |
| Ending Cash Balance | 10,603 | 10,440 | 11,037 | 9,844 | 18,998 | 15,959 | 17,783 | 17,489 |
Cash Flow Indicators — SAR millions unless stated
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| Cash Flow (CF) | 24,343 | 16,755 | 36,523 | 17,524 | 33,950 | 29,886 | 28,381 | 26,714 |
| Free Cash Flow (FCF) | 11,316 | 1,503 | 20,666 | 6,177 | 22,663 | 17,088 | 13,275 | 11,444 |
| Free Cash Flow to Equity (FCFE) | 8,478 | 6,128 | 19,394 | 7,857 | 22,650 | 25,703 | 12,587 | 11,006 |
| Unlevered Free Cash Flow to Equity (FCFF) | 29,825 | 20,920 | 40,279 | 25,627 | 41,766 | 34,568 | 17,518 | 31,368 |
Growth
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| YoY Revenue Growth Rate | 2.9% | 6.8% | 6.2% | 6.0% | 7.5% | 6.8% | 6.1% | 3.8% |
| 5Yr CAGR | — | — | — | 4.3% | 5.3% | 5.3% | 5.2% | 4.8% |
Cash Conversion Cycle — days
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| Days Sales Outstanding | 133 | 125 | 125 | 135 | 146 | 130 | 124 | 131 |
| Days Inventory Outstanding | 60 | 99 | 105 | 75 | 72 | 57 | 77 | 63 |
| Days Payables Outstanding | 330 | 452 | 451 | 373 | 404 | 246 | 268 | 261 |
| Cash Conversion Cycle | (137) | (227) | (221) | (163) | (187) | (59) | (67) | (67) |
Capital Expenditure
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| CapEx % of Revenues | 18.3% | 20.0% | 19.6% | 13.2% | 12.2% | 13.0% | 14.5% | 14.1% |
| Tangibility | 39.7% | 39.3% | 40.3% | 38.1% | 34.6% | 32.1% | 28.7% | 29.9% |
| Capex-to-CF Ratio | 0.54 | 0.91 | 0.43 | 0.65 | 0.33 | 0.43 | 0.53 | 0.57 |
| CF-to-CapEx Ratio | 1.87 | 1.10 | 2.30 | 1.54 | 3.01 | 2.34 | 1.88 | 1.75 |
Liquidity
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.17 | 1.13 | 1.05 | 1.15 | 1.36 | 1.30 | 1.44 | 1.33 |
| Quick Ratio | 1.15 | 1.08 | 1.02 | 1.12 | 1.34 | 1.26 | 1.40 | 1.28 |
| Cash ratio | 0.21 | 0.22 | 0.21 | 0.18 | 0.33 | 0.24 | 0.29 | 0.30 |
| Operating Cash Flow Ratio | 0.48 | 0.35 | 0.69 | 0.32 | 0.60 | 0.45 | 0.46 | 0.46 |
Solvency & Capital Structure
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| Debt ratio | 24.5% | 26.0% | 21.5% | 21.8% | 20.5% | 25.7% | 19.5% | 20.0% |
| Debt-to-equity ratio | 0.33 | 0.35 | 0.27 | 0.28 | 0.26 | 0.35 | 0.24 | 0.25 |
| Interest coverage ratio | 12.77 | 12.47 | 17.57 | 24.01 | 20.88 | 15.33 | 14.04 | 17.04 |
| Fixed Charge Coverage Ratio | 12.77 | 43.70 | (672.18) | (42.13) | (57.27) | (735.29) | (202.60) | 300.60 |
Efficiency
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| Fixed Assets Turnover | 1.02 | 1.05 | 1.06 | 1.16 | 1.30 | 1.36 | 1.60 | 1.59 |
| Total Assets Turnover | 0.40 | 0.41 | 0.43 | 0.44 | 0.45 | 0.44 | 0.46 | 0.47 |
| Goodwill to Assets Ratio | 0.9% | 0.9% | 0.9% | 0.8% | 0.9% | 1.9% | 1.1% | 1.1% |
| Revenues per FTE | 3,258,387 | 3,445,015 | 3,564,583 | 3,600,818 | 3,356,357 | 3,574,450 | 4,219,457 | 4,505,532 |
Profit Margins
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| Gross Profits | 60.2% | 61.0% | 59.1% | 55.5% | 56.7% | 50.8% | 51.6% | 50.9% |
| EBITDA | 38.1% | 39.0% | 38.5% | 36.8% | 35.9% | 34.3% | 30.7% | 33.3% |
| EBIT | 18.9% | 18.8% | 18.7% | 17.8% | 18.5% | 18.9% | 15.8% | 18.4% |
| NOPAT | 22.3% | 19.9% | 19.8% | 18.5% | 19.2% | 19.7% | 16.8% | 20.2% |
| EBT | 16.8% | 16.1% | 16.6% | 16.3% | 17.2% | 18.1% | 15.2% | 17.5% |
| Net Profits | 15.8% | 15.0% | 15.1% | 15.0% | 15.8% | 16.4% | 14.0% | 17.8% |
Returns
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| Return on Assets | 6.4% | 6.2% | 6.5% | 6.6% | 7.1% | 7.2% | 6.4% | 8.4% |
| Return on Equity | 13.4% | 14.1% | 13.8% | 13.5% | 14.3% | 14.7% | 12.0% | 16.4% |
Return on Invested Capital — SAR millions unless stated
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| NOPAT | 15,897 | 15,163 | 16,030 | 15,896 | 17,707 | 19,371 | 17,572 | 21,926 |
| Invested Capital | 129,775 | 140,068 | 139,062 | 148,667 | 153,086 | 172,472 | 173,948 | 174,430 |
| ROIC | 12.2% | 10.8% | 11.5% | 10.7% | 11.6% | 11.2% | 10.1% | 12.6% |
Cost of Capital
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|
| Cost of Debt | 7.7% | 7.8% | 6.7% | 4.7% | 5.6% | 5.3% | 7.1% | 6.7% |
| After Tax Cost of Debt | 7.7% | 7.8% | 6.7% | 4.7% | 5.6% | 5.3% | 7.1% | 6.6% |
| Cost of Equity | 8.3% | 7.4% | 6.2% | 5.2% | 7.2% | 6.5% | 6.1% | 5.8% |
| Weighted Average Cost of Capital (WACC) | 8.1% | 7.5% | 6.3% | 5.1% | 7.0% | 6.3% | 6.2% | 5.9% |
Every metric below is shown for the cohort aggregate and for each company. Hover any chart to read the exact values. Etihad Atheeb Telecom (GO, 7040) is excluded throughout on fiscal-year-end grounds. Where a series does not reconcile to the underlying company sheet it is flagged rather than corrected. The full underlying numbers are on each company page.
Market Data
Share Price
The market price of one share at each year end.
In FY2025 the highest was Mobily at 66.00, the lowest Zain KSA at 10.43.
stc rose from 36.72 in FY2018 to 42.98 in FY2025.
Market Value
What the whole company is worth on the exchange: share price times the number of shares.
In FY2025 the highest was stc at SAR 214.9B, the lowest Zain KSA at SAR 898.7M.
stc rose from SAR 73.4B in FY2018 to SAR 214.9B in FY2025.
Data check. This block does not reconcile to the company sheets it is derived from: Zain KSA disagrees in 8 of 8 years. The figures are shown as they appear in the workbook and have not been silently corrected.
Enterprise Value
The cost of buying the business outright — market value plus debt, less the cash you would inherit.
In FY2025 the highest was stc at SAR 219.0B, the lowest Zain KSA at SAR 18.8B.
stc rose from SAR 69.6B in FY2018 to SAR 219.0B in FY2025.
Revenues
Total sales for the year, before any costs.
In FY2025 the highest was stc at SAR 77.8B, the lowest Zain KSA at SAR 11.0B.
stc rose from SAR 52.0B in FY2018 to SAR 77.8B in FY2025.
Growth Rates
YoY Revenue Growth Rate
How much sales grew on the previous year.
In FY2025 the highest was Mobily at 7.9%, the lowest stc at 2.5%.
The cohort rose from 2.9% in FY2018 to 3.8% in FY2025.
5Yr CAGR
Average yearly sales growth over five years, smoothing out good and bad years.
In FY2025 the highest was Zain KSA at 6.8%, the lowest stc at 4.3%.
Working Capital Turnover
Accounts Receivables Turnover
How many times a year the company collects its outstanding customer bills.
In FY2025 the highest was Mobily at 3.20, the lowest Zain KSA at 2.17.
The cohort rose from 2.75 in FY2018 to 2.78 in FY2025.
Inventory Turnover
How many times a year the company sells and replaces its stock.
In FY2025 the highest was Mobily at 10.74, the lowest stc at 4.95.
The cohort fell from 6.10 in FY2018 to 5.84 in FY2025.
Accounts Payables Turnover
How many times a year the company pays down what it owes suppliers.
In FY2025 the highest was Mobily at 1.80, the lowest Zain KSA at 0.87.
The cohort rose from 1.11 in FY2018 to 1.40 in FY2025.
Cash Conversion Cycle
Days Sales Outstanding
How long customers take to pay, in days. Lower means cash arrives sooner.
In FY2025 the highest was Zain KSA at 168, the lowest Mobily at 114.
The cohort fell from 133 in FY2018 to 131 in FY2025.
Days Inventory Outstanding
How long stock sits before it sells, in days.
In FY2025 the highest was stc at 73.81, the lowest Mobily at 33.99.
The cohort rose from 59.83 in FY2018 to 62.50 in FY2025.
Days Payables Outstanding
How long the company takes to pay its own suppliers, in days.
In FY2025 the highest was Zain KSA at 421, the lowest Mobily at 203.
The cohort fell from 330 in FY2018 to 261 in FY2025.
Cash Conversion Cycle
Days between paying suppliers and collecting from customers. Negative means the company is funded by its suppliers rather than funding them.
In FY2025 the highest was stc at -40, the lowest Zain KSA at -206.
The cohort rose from -137 in FY2018 to -67 in FY2025.
CapEx
CapEx % of Revenues
How much of each riyal of sales is reinvested in networks and equipment.
In FY2025 the highest was Mobily at 16.4%, the lowest Zain KSA at 2.3%.
The cohort fell from 18.3% in FY2018 to 14.1% in FY2025.
Tangibility
Share of the balance sheet held as physical assets rather than intangibles.
In FY2025 the highest was Mobily at 47.7%, the lowest Zain KSA at 16.6%.
The cohort fell from 39.7% in FY2018 to 29.9% in FY2025.
Capex-to-CF Ratio
How much of operating cash flow is consumed by capital spending.
In FY2025 the highest was stc at 64.5%, the lowest Zain KSA at 14.0%.
The cohort rose from 53.5% in FY2018 to 57.2% in FY2025.
CF-to-CapEx Ratio
How many times over operating cash flow covers capital spending. Above 1.0 means investment is self-funded.
In FY2025 the highest was Zain KSA at 7.15, the lowest stc at 1.55.
The cohort fell from 1.87 in FY2018 to 1.75 in FY2025.
Share Performance
Earnings per Share
Profit attributable to each individual share.
In FY2025 the highest was Mobily at 4.52, the lowest Zain KSA at 0.67.
The cohort fell from 3.37 in FY2018 to 2.89 in FY2025.
Sales per Share
Revenue attributable to each individual share.
In FY2025 the highest was Mobily at 25.59, the lowest Zain KSA at 12.22.
The cohort fell from 21.28 in FY2018 to 16.29 in FY2025.
Cash Flow per Share
Operating cash flow attributable to each individual share.
In FY2025 the highest was Mobily at 8.67, the lowest Zain KSA at 1.98.
The cohort fell from 7.26 in FY2018 to 4.01 in FY2025.
Book Value per Share
Accounting net worth attributable to each share — assets less liabilities.
In FY2025 the highest was Mobily at 26.49, the lowest Zain KSA at 12.10.
The cohort fell from 25.21 in FY2018 to 17.67 in FY2025.
Price Multiples
P/E Ratio
Years of current profit needed to pay back the share price. Higher means the market expects more growth.
In FY2025 the highest was Zain KSA at 15.52, the lowest stc at 14.12.
The cohort rose from 8.16 in FY2018 to 14.26 in FY2025.
P/S Ratio
Share price relative to sales per share.
In FY2025 the highest was stc at 2.76, the lowest Zain KSA at 0.85.
The cohort rose from 1.29 in FY2018 to 2.53 in FY2025.
P/CF Ratio
Share price relative to the cash the business generates per share.
In FY2025 the highest was stc at 11.73, the lowest Zain KSA at 5.28.
The cohort rose from 3.79 in FY2018 to 10.28 in FY2025.
P/B Ratio
Share price relative to accounting net worth. Above 1.0 means the market values the business above its book assets.
In FY2025 the highest was Mobily at 2.49, the lowest Zain KSA at 0.86.
The cohort rose from 1.09 in FY2018 to 2.33 in FY2025.
Dividends
Dividends per Share
Cash paid out to each share during the year.
In FY2025 the highest was stc at 4.20, the lowest Zain KSA at 0.00.
The cohort rose from 2.39 in FY2018 to 3.44 in FY2025.
Dividends Payout Ratio
Share of profit paid out as dividends. Above 100% means paying out more than was earned.
In FY2025 the highest was stc at 138.0%, the lowest Zain KSA at 0.0%.
The cohort rose from 70.9% in FY2018 to 118.8% in FY2025.
Dividends Coverage Ratio
How many times profit covers the dividend. Below 1.0 means the dividend exceeds earnings.
In FY2025 the highest was Mobily at 1.80, the lowest Zain KSA at 0.00.
The cohort fell from 1.41 in FY2018 to 0.84 in FY2025.
Dividends Yield
Dividend income as a percentage of the share price.
In FY2025 the highest was stc at 9.8%, the lowest Zain KSA at 0.0%.
The cohort fell from 8.7% in FY2018 to 8.3% in FY2025.
Liquidity
Current Ratio
Short-term assets against short-term bills. Below 1.0 means near-term obligations exceed near-term resources.
In FY2025 the highest was stc at 1.44, the lowest Mobily at 0.93.
The cohort rose from 1.17 in FY2018 to 1.33 in FY2025.
Quick Ratio
The current ratio excluding inventory, which cannot always be sold quickly.
In FY2025 the highest was stc at 1.39, the lowest Mobily at 0.91.
The cohort rose from 1.15 in FY2018 to 1.28 in FY2025.
Cash ratio
Cash alone against short-term bills — the strictest liquidity test.
In FY2025 the highest was stc at 0.33, the lowest Zain KSA at 0.15.
The cohort rose from 0.21 in FY2018 to 0.30 in FY2025.
Operating Cash Flow Ratio
Cash generated from operations against short-term bills.
In FY2025 the highest was Mobily at 0.59, the lowest Zain KSA at 0.28.
The cohort fell from 0.48 in FY2018 to 0.46 in FY2025.
Solvency & Capital Structure
WACC
The blended cost of the company's funding — what shareholders and lenders together require.
In FY2025 the highest was stc at 9.3%, the lowest Mobily at 6.0%.
The cohort fell from 8.1% in FY2018 to 5.9% in FY2025.
Debt ratio
Borrowings as a share of everything the company owns.
In FY2025 the highest was Zain KSA at 44.0%, the lowest stc at 15.0%.
The cohort fell from 24.5% in FY2018 to 20.0% in FY2025.
Debt-to-equity ratio
Borrowings against shareholders' money. Higher means more financial risk.
In FY2025 the highest was Zain KSA at 0.79, the lowest stc at 0.18.
The cohort fell from 0.33 in FY2018 to 0.25 in FY2025.
Interest coverage ratio
How many times operating profit covers the interest bill.
In FY2025 the highest was stc at 23.99, the lowest Zain KSA at 6.07.
The cohort rose from 12.77 in FY2018 to 17.04 in FY2025.
Fixed Charge Coverage Ratio
Coverage of interest plus other fixed obligations such as leases.
In FY2025 the highest was stc at 136, the lowest Mobily at -18.
The cohort rose from 13 in FY2018 to 301 in FY2025.
Efficiency
Goodwill to Assets Ratio
Share of the balance sheet made up of goodwill from past acquisitions.
In FY2025 the highest was Mobily at 3.5%, the lowest Zain KSA at 0.0%.
The cohort rose from 0.9% in FY2018 to 1.1% in FY2025.
Revenues per FTE
Sales generated per employee — a rough productivity measure.
In FY2025 the highest was Zain KSA at 6,656,524, the lowest stc at 4,112,820.
The cohort rose from 3,258,387 in FY2018 to 4,505,532 in FY2025.
Profit Margins
Gross Profits
Share of each riyal of sales left after the direct cost of delivering the service.
In FY2025 the highest was Zain KSA at 59.9%, the lowest stc at 48.7%.
The cohort fell from 60.2% in FY2018 to 50.9% in FY2025.
EBITDA
Share of sales left as operating profit before depreciation and amortisation.
In FY2025 the highest was Mobily at 39.8%, the lowest Zain KSA at 31.7%.
The cohort fell from 38.1% in FY2018 to 33.3% in FY2025.
EBIT
Share of sales left as operating profit after depreciation.
In FY2025 the highest was Mobily at 20.5%, the lowest Zain KSA at 12.0%.
The cohort fell from 18.9% in FY2018 to 18.4% in FY2025.
NOPAT
Operating profit after tax, as a share of sales — the profit available to all providers of capital.
In FY2025 the highest was stc at 22.2%, the lowest Zain KSA at 9.7%.
The cohort fell from 22.3% in FY2018 to 20.2% in FY2025.
EBT
Share of sales left as profit before tax and zakat.
In FY2025 the highest was stc at 18.9%, the lowest Zain KSA at 5.9%.
The cohort rose from 16.8% in FY2018 to 17.5% in FY2025.
Net Profits
Share of each riyal of sales that ends up as bottom-line profit.
In FY2025 the highest was stc at 19.5%, the lowest Zain KSA at 5.5%.
The cohort rose from 15.8% in FY2018 to 17.8% in FY2025.
Returns
Return on Assets
Profit earned per riyal of assets the company holds.
In FY2025 the highest was stc at 9.6%, the lowest Zain KSA at 2.1%.
The cohort rose from 6.4% in FY2018 to 8.4% in FY2025.
Return on Equity
Profit earned per riyal shareholders have invested.
In FY2025 the highest was stc at 17.6%, the lowest Zain KSA at 5.6%.
The cohort rose from 13.4% in FY2018 to 16.4% in FY2025.
ROIC
Return earned on all the capital put into the business. The number to compare against WACC.
In FY2025 the highest was stc at 14.5%, the lowest Zain KSA at 4.7%.
The cohort rose from 12.2% in FY2018 to 12.6% in FY2025.
Valuation Multiples
EV/Revenues
Enterprise value relative to annual sales.
In FY2025 the highest was Mobily at 2.91, the lowest Zain KSA at 1.71.
The cohort rose from 1.53 in FY2018 to 2.72 in FY2025.
EV/EBITDA
Enterprise value relative to operating profit before depreciation — the standard way to compare companies with different debt loads.
In FY2025 the highest was stc at 8.83, the lowest Zain KSA at 5.41.
The cohort rose from 4.01 in FY2018 to 8.17 in FY2025.
EV/Book Value
Enterprise value relative to the accounting value of the business.
In FY2025 the highest was Mobily at 2.81, the lowest Zain KSA at 1.73.
The cohort rose from 1.29 in FY2018 to 2.51 in FY2025.
The green line is what the sector earns on the capital it employs; the red dashed line is what that capital costs. The gap between them is the whole argument.
The sector has cleared its cost of capital in every year since 2018, by between 3.4 and 6.7 points. FY2025 is the widest gap of the window — but it widened because the cost of capital fell to 5.9%, not because returns improved. ROIC at 12.6% is roughly where it was in 2018.