Jarir Stocks: Comprehensive Overview of Financial Performance and Dividends

Jarir Marketing Company was established in the Saudi capital, Riyadh, in the 1970s, starting as a small bookstore and gradually expanding to include a wide chain of stores in the Kingdom and Gulf countries. Jarir's product range has increased to include books, stationery, smart devices, computers, tablets, office furniture, and printers. The company has adopted a strategy of diversification and a focus on quality throughout its history, enhancing its market share in the Saudi retail sector.

Today, Jarir is the exclusive distributor or agent for several global brands in the electronics sector, giving it a clear competitive advantage. Its extensive branch network in Saudi cities and Gulf countries reflects its ability to reach various consumer segments, especially with a focus on meeting the needs of digital education and technological transformation.

In addition to its direct retail activities, Jarir has developed its online platform (Jarir.com) to keep pace with changes in purchasing behaviors, as consumers increasingly prefer online shopping. Thus, Jarir combines the strength of physical presence in shopping centers with expertise in e-commerce, placing it in a strategic position within the sector.

Jarir stocks witnessed profit growth and revenue stability during 2024 and 2025. According to financial reports, the company's profits in 2024 reached approximately 974 million Saudi Riyals, with continued growth in the first half of 2025, bringing net profit to 414.5 million Riyals, an increase of 6% compared to the same period last year. Sales in the smartphone, computer, and tablet sectors rose, helping to enhance revenues and improve profit margins.

Earnings per share were approximately 0.81 Riyals in 2024, with the number of issued shares remaining stable at 1.2 billion shares. A decrease in administrative expenses and improved operating liquidity supported the results, while debt ratios remained at acceptable levels for the sector.

These results reflect Jarir's ability to adapt to local and global economic conditions, particularly with inflationary pressures and changes in consumer demand. Although growth is modest compared to previous years, it demonstrates the resilience of the company's business model amid increasing competition from online and local retailers.

The cash dividend policy is one of the most attractive factors for investors in Jarir stocks. The company has committed to distributing regular quarterly dividends in recent years. At the end of 2024, the company distributed 0.23 Riyals per share for the fourth quarter, followed by 0.19 Riyals for the first quarter of 2025 and 0.16 Riyals for the second quarter. Thus, the total distributions in the first half of 2025 amounted to approximately 0.35 Riyals per share.

This approach signals positive indications regarding cash flow stability and Jarir's ability to achieve distributable operating profits, enhancing investor confidence in the sustainability of returns. Considering the stock prices within their average range, the annual cash yield is among the highest in Saudi retail companies, attracting investors seeking regular income.

It is worth noting that the distribution policy depends on actual financial performance and market conditions, and it cannot be guaranteed to continue at the same pace in the future without reviewing the company's quarterly and annual results.

The price-to-earnings (P/E) ratio is one of the most important indicators used by investors to evaluate Jarir stocks. Based on the earnings per share for 2024 (0.81 Riyals per share) and the stock trading price around 81 Riyals (for illustrative purposes), the P/E ratio approaches 100. This ratio reflects the high valuation of the stock compared to some sector stocks, attributed to the company's stability and its long history of dividends and growth.

However, interested parties should analyze the P/E ratio in the context of the sector and the macroeconomy, as its high level may indicate either strong future growth expectations or inflated valuations due to strong demand for the stock. It is important to continuously review updated financial research reports to keep pace with changes in indicators and forecasts related to Jarir stocks.

Jarir is a publicly traded company listed on the Saudi financial market, with a total of 1.2 billion issued shares according to the latest financial reports. Ownership is distributed among founders, investment institutions, funds, and individual portfolios.

Jarir's market capitalization reflects its significant size in the retail sector, exceeding hundreds of billions of Riyals based on the stock price and the number of shares. This relative weight makes Jarir stock one of the influential components in Saudi market indices, especially in the general Tadawul index and the retail sector.

The large market weight contributes to increasing the stock's liquidity and attractiveness to local and global investment institutions, enhancing its ability to attract capital seeking stability and sustainable returns.

Jarir operates in multiple sectors including consumer electronics (smartphones, computers, tablets), office supplies (paper, stationery, printers), books (educational and general), and office furniture. This diversification enhances the company's ability to respond to changes in consumer demand and reduces risks associated with reliance on a single sector.

The smartphone and computer sectors have seen significant sales growth in 2024 and 2025, supported by Saudi families' shift towards digital education and technological consumption. Additionally, Jarir's presence in the book and stationery sector gives it a competitive advantage during back-to-school and university seasons.

The company also boasts strategic relationships with global suppliers, allowing it to obtain discounts and exclusive shares of products, positively reflecting on profit margins.

Jarir faces strong competition from several entities in the Saudi market:

1. Specialized Electronics Chains: Such as Extra and E-Max, which offer smartphones, computers, and electronic devices at competitive prices and seasonal promotions.
2. E-commerce Stores: Such as Amazon and Noon, where e-commerce is capturing an increasing share of the retail market, requiring Jarir to develop its digital platforms.
3. Local Bookstores and Stationery: Such as Al-Abikan and university bookstores, which compete with Jarir in the book and stationery sector, especially in secondary cities.
4. Hypermarkets and Large Stores: Such as Panda Markets and Hyper Panda, which offer electronics and office supplies as part of their expanded offerings.

Despite this competition, Jarir remains ahead due to its branch network, quality services, and product diversity. However, maintaining this position requires continuous investments in marketing and technology.

E-commerce has brought significant transformation to the Saudi retail sector, with an increasing number of customers preferring to shop online. Jarir has responded to this change by developing its online platform (Jarir.com) and offering fast delivery and electronic payment services.

This transformation presents an opportunity to boost sales and reach new customer segments, but it imposes challenges such as price competition with online stores and logistics costs. On the other hand, Jarir benefits from combining physical retail with e-commerce (Omni Channel), allowing customers to have a shopping experience that integrates visiting branches and purchasing products online.

E-commerce is expected to increase in importance within the company's revenue mix in the coming years, especially in light of the digital trends at the national level and the Vision 2030 initiatives.

In 2025, Jarir announced a strategic partnership with Raya Group to establish a joint consumer finance company aimed at facilitating purchase operations for customers and boosting sales. The company also continued to regularly announce its financial results and dividend distributions, indicating its commitment to transparency and continuous communication with investors.

Furthermore, financial institutions and analysts regularly monitor Jarir's performance. Ubar Capital has issued analytical reports on the second quarter of 2025 results, expressing a positive outlook on the stability of operating margins and sales growth.

Jarir has not announced significant expansions in the number of branches recently, but past policies indicate the company's intention to continue expanding within and outside the Kingdom when suitable opportunities arise, enhancing growth prospects in the medium term.

The performance of Jarir stocks is influenced by several economic factors, the most important of which are:
- Inflation and Exchange Rates: Affecting the cost of importing goods such as computers and phones.
- Local Consumer Demand: Especially with families shifting towards digital education and increased spending on technology.
- Government Support and Stimulus Policies: Under Vision 2030 to diversify the economy and support non-oil sectors.
- Global Economic Cycles: Where any economic slowdown or financial crises may affect household purchasing power.

Despite these challenges, Jarir has shown resilience in facing economic pressures due to its product diversity and ability to control operating costs, enabling it to achieve stable profit growth even amid market fluctuations.

The main risks include:

- Increased competition from online stores and specialized retailers, which may negatively impact traditional market share.
- Fluctuations in exchange rates and rising import costs.
- Changes in consumer behavior towards greater online shopping, requiring significant investments in digital transformation.
- Global or local economic crises and their impact on consumer spending.

To address these challenges, Jarir invests in developing its digital channels, improving customer experience, and diversifying products. It also seeks to enhance its strategic partnerships with suppliers and financing companies to provide innovative solutions for customers.

Jarir adopts multiple growth strategies, including geographic expansion by opening new branches in Saudi and Gulf cities, developing e-commerce, and expanding partnerships with technology and finance companies. It also focuses on offering new products and services that meet the needs of the digital age, such as e-learning solutions and modern smart devices.

The recent partnership with Raya Group exemplifies the move towards enabling customers with flexible financing options, supporting sales and increasing customer loyalty. These policies indicate the company's desire to maintain its leadership and capitalize on future market opportunities in the changing retail sector.

Jarir is distinguished by regularly announcing its quarterly and annual results on the Tadawul website and financial news sites, providing investors with high transparency regarding financial and operational performance. Interested parties are advised to follow these reports periodically to keep up with changes in profits, distributions, and growth in various sectors.

This transparency provides investors with an opportunity to analyze trends and assess risks in an informed manner. Additionally, reviewing research reports issued by major financial institutions helps in understanding future expectations for Jarir stocks, but investment decisions should always be made with the consultation of a licensed specialist considering personal and market conditions.