Nadec Share Price: Detailed Analysis of Performance and Financial Indicators in

Nadec (the National Agricultural Development Company) is considered a leader in the agriculture and food industry in the Kingdom of Saudi Arabia. Founded in the early 1980s, with clear government support, it was established as part of a policy to enhance national food security and reduce reliance on imports. Its main activities include dairy production and its derivatives, juices, vegetable oils, and agricultural crops, in addition to livestock breeding. The company operates modern farms and factories distributed throughout the Kingdom, characterized by strong supply chains that ensure its presence in most major retail outlets and consumer areas. Nadec is also listed on the Saudi financial market (Tadawul), making its financial and disclosure data available and transparent to investors and observers. Nadec holds a strategic position, not only in terms of its size but also in its contribution to achieving the goals of Saudi Vision 2030 in localizing the food industry and supporting the national economy.

The price of Nadec's shares in the Saudi financial market reflects a relative stability with limited fluctuations over the past few months. According to the latest published data, the share price reached approximately 18.92 SAR in the last trading session. The price typically ranges between 18.80 SAR (the lowest price during the last session) and 19.00 SAR (the highest price). This price range reflects a balance between supply and demand, indicating that the stock is under continuous observation by traders, especially after the notable financial performance in 2024. It is worth mentioning that the stock has experienced an annual decline of about 25% from last year's levels, but it has shown a relative recovery since the beginning of 2025, with an increase of about 3%. The recent daily trading volume reached approximately 517,658 shares, with a trading value of around 9.79 million SAR and a total of 1,264 transactions. These indicators reflect moderate liquidity and active presence of the stock in the market.

Nadec witnessed a significant improvement in its financial results during 2024, with net profits reaching 774.6 million SAR, the highest annual profit in the company's history. The fourth quarter of 2024 was marked by exceptional gains of 448.1 million SAR, significantly boosting the annual results. In 2025, the company continued to achieve stable quarterly profits, recording 103.4 million SAR in the first quarter, 115.3 million SAR in the second quarter, and 110.7 million SAR in the third quarter, bringing the total profits for the first nine months of 2025 to 329.4 million SAR. The profits for the first half of 2025 were approximately 218.7 million SAR, reflecting a 3% increase compared to the same period last year. This financial performance reflects the company's ability to maintain growth despite operational challenges and market changes, benefiting from stable demand for its products and expansion into new production lines.

When examining the financial indicators for Nadec's shares, we find that the company's market capitalization is approximately 5.707 billion SAR, making it one of the largest companies in the agriculture and food sector. The price-to-earnings (P/E) ratio is around 7.3 based on 2024 results, which is relatively low compared to sector averages and may reflect cautious pricing by the market or an assessment of relative stability in profits. The current dividend yield for the stock is 0%, as the company has not announced any cash distributions in 2024 or 2025 so far, preferring to reinvest profits in expansion and upgrading production capacities. Another important aspect is the trading volume and daily liquidity, where the stock records active trades reflecting its attractiveness to observers and traders. Overall, the indicators suggest that Nadec's shares achieve a balance between growth and financial valuation, with potential for improvement if sector conditions improve or the company announces future distributions.

The agriculture and food industries sector is a vital sector in the Kingdom, supported by government strategies aimed at achieving local food security. Companies like Nadec, Almarai, and Al Safi form the backbone of this sector, providing dairy products, juices, oils, and staple crops to Saudi and Gulf markets. The sector faces challenges such as fluctuations in agricultural input prices, energy and transportation costs, as well as strong competition and changing consumer preferences towards healthy and organic products. Nadec plays an important role in developing the local food supply chain and localizing agricultural technology, contributing to the diversification of the national economy in line with the goals of Vision 2030 through its production and investment projects. The company's resilience in facing financial and operational challenges is one of the factors contributing to its success and the stability of its share price.

Nadec competes with several major companies in the food sector, including Almarai, Al Safi (Danone), and Saffi Foods (ADAFCO), in addition to local companies in oils and crops. Competition in this sector is characterized by rapid cycles and a variety of products, with continuous pressure on prices and the quality of logistics services. Nadec maintains a significant market share in dairy, juices, and oils due to its continuous investments in expansion and improving the supply chain. However, the company faces challenges regarding innovation and introducing new products that meet consumer expectations, especially amid rising input prices and market shifts. Effective cost management and product quality are key factors in enhancing the company's position and maintaining the stability of its share price.

Nadec has witnessed several institutional and operational developments recently. Among the most notable is the company's announcement of fuel price adjustments in coordination with Saudi Aramco in January 2026, which may impact operating costs and necessitate a review of energy and cooling strategies. The company also announced the opening of nominations for the board of directors and increasing the number of members from 7 to 9, reflecting a desire to enhance governance and institutional expansion. Additionally, the company completed the purchase of one million shares of its own stock as treasury shares under the employee incentive program, a step aimed at supporting the share price and motivating staff. Nadec also launched the "National Shepherd Company for Livestock" project, enhancing the integration of production chains and reducing reliance on external suppliers. These developments collectively reflect the company's commitment to sustainable expansion and updating its administrative and operational structures.

As a company listed on Tadawul, Nadec is committed to the highest standards of financial disclosure and transparency in announcing its quarterly and annual results. The company regularly publishes its financial reports and provides updates on new projects and developments through official channels. This level of transparency gives investors confidence in monitoring the stock's performance and evaluating its risks and opportunities objectively. Regular disclosures about changes in the board of directors, new projects, or structural changes help reduce rumors and random speculation on the stock. The company's commitment to governance and regulatory compliance is one of the important factors in stabilizing Nadec's share price in the long term.

As of the end of 2025, Nadec has not announced any cash dividends for shareholders, which is explained by the company's preference to reinvest profits in business development and expanding production projects. This policy may be attractive to investors seeking long-term capital growth, but it may reduce the stock's appeal to those who prefer regular income from dividends. Data indicates that the company focuses on maximizing shareholder value through expansion in projects such as livestock and upgrading farms and production lines, which may positively reflect on the stock's performance in the future if these investments succeed in increasing profits. It is important to monitor future disclosures regarding any changes in the distribution policy and their impact on the stock's valuation.

Nadec's share price can be monitored through official and reliable platforms, such as the Saudi financial market (Tadawul) website, which provides real-time data on prices, trading volumes, disclosures, and news about listed companies. Financial websites like Argaam also offer detailed financial reports and sector analyses, along with the latest updates on the stock and the company. Additionally, licensed banks and brokerage firms provide periodic reports and analytical tools for investors. It is important to rely on official sources and avoid unverified rumors when evaluating or monitoring stock movements. Transparency in data and regular disclosures by the company enhance the credibility of the information available about the stock.

Nadec's share price is influenced by several internal and external factors. Internally, the company's quarterly financial results, management decisions, and developments in new projects play a pivotal role in moving the share price. Externally, fluctuations in agricultural commodity prices, energy costs, and competition in the food sector, along with government policies related to food security and agricultural support, affect the stock. Additionally, changes in currency exchange rates, major economic events, and trends among local and foreign investors may also play a role in influencing the stock's liquidity and daily movements. The most crucial element remains the company's ability to achieve sustainable profit growth and manage costs efficiently, which ultimately reflects on the stock's valuation in the market.

The price-to-earnings (P/E) ratio is one of the fundamental indicators for evaluating stocks. For Nadec's shares, the P/E ratio is approximately 7.3 based on 2024 results, which is lower than the average of food sector companies in Saudi Arabia. This means that the stock may be undervalued or that the market expects stable growth without significant jumps in profits. It is important to note that the P/E ratio changes with variations in the company's earnings and share price, and it should be compared with sector rates and benchmark indicators such as the main TASI index. Nadec's inclusion in indices such as TASI or sector-specific indices enhances its presence among institutional investors and increases its liquidity in the market.

When monitoring Nadec's share price or any other stock in the Saudi financial market, it is essential to adopt a neutral analytical approach based on actual financial and economic data. Studying financial statements, profitability indicators, liquidity volume, distribution policies, and sector trends are all important elements for understanding the stock's dynamics. It is also advisable to refer to official sources and avoid rumors or unlicensed recommendations. Finally, any investment decision should be made after consulting a licensed financial advisor who is familiar with the Saudi market and the investor's goals, to ensure sound decisions that align with each individual's circumstances.