SABTCO Stock Price: Comprehensive Analysis of Performance and Trends in the

The Saudi Public Transport Company (SABTCO) was established in 1975 as the first joint-stock company specialized in public road transport in the Kingdom of Saudi Arabia. The company aims to provide safe and reliable transport services for citizens, residents, pilgrims, and Umrah performers, whether through intercity trips or within major cities. SABTCO represents a key link between various regions of Saudi Arabia and plays a pivotal role during the Hajj and Umrah seasons, transporting millions of visitors to the holy sites annually.

The company follows a mixed ownership model, with the government owning a significant portion of the capital alongside private sector shareholders. This status grants SABTCO certain government privileges, such as exclusive rights on some transport lines, while also obliging it to full financial disclosure and transparency like any listed joint-stock company.

SABTCO's listing on the Saudi financial market under symbol 4040 (Stock Page), provides it with a clear presence in the financial market and makes it one of the most important public transport companies in the region.

SABTCO's stock price experienced significant fluctuations during 2024 and 2025, influenced by several economic and operational factors. According to data from the Saudi financial market, the stock started 2024 at relatively low levels due to the ongoing effects of the COVID-19 pandemic and accumulated operational losses. The stock price ranged between 9 to 13 Saudi Riyals during that period, with a clear downward trend from previous levels.

As the Hajj season approached in mid-2024 and economic activity gradually returned, the stock saw some slight recovery, but prices remained around the same level. In 2025, prices stabilized relatively within the range of 10 to 15 Saudi Riyals, with continued fluctuations based on the company's quarterly results and sector developments.

This volatility reflects the stock's sensitivity to financial performance results and general economic conditions, in addition to the seasonality of demand for public transport services. This underscores the necessity for investors or followers of the stock to continuously monitor the company's quarterly results and market developments.

SABTCO's financial data heavily relies on seasonal activity (especially during the Hajj and Umrah seasons), alongside domestic demand for public transport services. In 2025, the number of issued shares was approximately 90 million, and with an average trading price of around 12 Riyals, the company's market value stood at about 1.08 billion Saudi Riyals.

Regarding profitability indicators, the company recorded accumulated losses exceeding 20% of its capital, placing it among the loss-making companies in the Saudi financial market. This situation led to the absence of a price-to-earnings (P/E) ratio, as the company has not achieved positive net profits in recent years, making it impossible to calculate this indicator in the traditional sense.

In terms of cash distributions, SABTCO did not distribute dividends during 2024 or 2025 due to ongoing financial pressures. The company's financial policy remains focused on improving operational performance and reducing losses, which is reflected in its strategy to maintain liquidity and operate the fleet efficiently.

The movement of SABTCO's stock price is influenced by several key variables. Firstly, the company's financial performance is the most prominent factor, as quarterly profit or loss results lead to direct movements in the stock price. Secondly, government policies play a crucial role, especially regarding fuel support, job localization, and strategic public transport projects under Vision 2030.

Other influencing factors include the seasonality of demand for public transport services, particularly during the Hajj and Umrah seasons, when demand significantly increases. Additionally, developments in the transport sector, such as the introduction of smart transport services and ride-hailing applications, impose additional competition and affect SABTCO's market share.

Finally, general economic changes, such as population and tourism growth rates, impact demand size and reflect on revenues. All these factors combined make SABTCO's stock price highly sensitive to internal and external changes in the business environment.

The public transport sector in the Kingdom is considered a strategic sector that receives direct government support aimed at developing infrastructure and improving quality of life. The Saudi government is committed to expanding and developing public transport networks under Vision 2030, opening the door for companies like SABTCO to participate in massive projects such as the Riyadh Metro and other urban transport projects.

The company faces various challenges such as rising operational costs, competition from smart transport applications, and the aging of some parts of its fleet. Conversely, it enjoys privileges such as transport rights on some major routes and partial government support, along with its long experience in managing large operations during Hajj and Umrah seasons.

Studies indicate that the sector is poised for medium-term growth supported by population growth and increased demand for public transport, but success depends on companies' ability to adapt to technological transformations and improve operational efficiency.

SABTCO does not face significant direct competition from other public transport companies of the same size and scope, but it competes indirectly with several parties. Firstly, there are private ground transport companies that offer bus rental services for tourism or for Umrah performers, competing with SABTCO on some high-demand routes.

Secondly, the market has seen the entry of smart transport applications like Uber and Careem, which capture an increasing share of urban transport users, especially for short trips. Thirdly, domestic air travel is a partial competitor to SABTCO, particularly for routes between major cities.

Despite this competition, SABTCO retains some competitive advantages such as economical prices and experience in operating during religious seasons, along with exclusive rights on some routes. However, ongoing competition and technological changes require the company to enhance its services and upgrade its fleet to maintain its leading position.

During 2024 and 2025, SABTCO's accumulated losses exceeded 20% of the company's capital, prompting the Saudi financial market to list it among companies with accumulated losses. This situation is an indicator of the significant challenges the company faces in terms of controlling costs and achieving operational efficiency.

Part of these losses is attributed to high fleet maintenance and operational costs, along with competitive pressures from modern transport alternatives. Additionally, the company's commitment to providing subsidized services on some routes leads to margin erosion.

From a regulatory perspective, being listed among loss-making companies requires management to take clear corrective actions such as restructuring, reducing expenses, or seeking new funding sources. The market and investors continue to closely monitor financial developments to assess the company's ability to overcome this critical phase.

SABTCO did not distribute any cash dividends to shareholders during 2024 and 2025 due to ongoing financial pressures and accumulated losses on the financial statements. The last announced distributions date back to years before the onset of significant losses, and since then, the company has focused on maintaining operational liquidity and restructuring its activities.

This policy reflects the company's financial reality, as it prefers to direct available financial resources towards improving operational performance and updating the fleet rather than distributing profits. In the financial market, the absence of distributions is viewed as a signal of ongoing challenges and a preference for financial sustainability in the long term over immediate returns for shareholders.

Any change in the distribution policy is linked to improved financial results and reduced accumulated losses, which requires continuous monitoring of the company's announcements and quarterly reports.

In its efforts to improve financial and operational performance, SABTCO has launched several developmental initiatives recently. Among the most important of these initiatives is updating the bus fleet by adopting more fuel-efficient buses and replacing older models that increase maintenance and operational costs.

The company has also worked on digitizing booking services through its website and mobile applications, making it easier for customers to access its services and providing a better experience. SABTCO also aims to expand its partnerships with travel agencies and diversify income sources through services for Umrah performers and tourists.

Management hopes that these initiatives will yield results in the medium term by enhancing operational efficiency, reducing expenses, and increasing revenues, positively impacting financial performance and stock price in the future.

Saudi Vision 2030 serves as a strategic framework for developing infrastructure sectors, including public transport. The vision aims to improve the quality of life in Saudi cities, reduce reliance on private cars, and enhance religious and recreational tourism.

For SABTCO, Vision 2030 offers new opportunities to participate in major transport projects, whether in new cities or massive tourism projects like NEOM. However, the vision also imposes challenges in terms of adhering to high service standards, expanding digital services, and increasing job localization.

SABTCO's benefit from this vision depends on its ability to respond to development requirements and achieve the operational efficiency necessary to engage in public-private partnership projects.

The Hajj and Umrah seasons are among the most significant periods that directly impact SABTCO's revenues and financial results. With millions of pilgrims and Umrah performers arriving annually in the Kingdom, the need for public transport services between cities and holy sites multiplies.

SABTCO plays a pivotal role in organizing and executing large-scale transport operations during these seasons, leading to increased ticket sales and seasonal revenue. However, these seasonal revenues may not be sufficient to offset the accumulated operational losses throughout the year, especially amid rising operational costs.

Relying on the Hajj and Umrah seasons remains part of the company's strategy, with the need to expand the customer base and diversify income sources to achieve financial sustainability throughout the year.

SABTCO faces a range of future challenges related to rising costs, increasing competition from alternative transport means, and regulatory pressures to curb losses. Additionally, updating the fleet and improving services requires substantial investments that may impact the company's liquidity in the short term.

Conversely, promising opportunities arise amid government support for public transport, expansion of infrastructure projects, and increased demand for Hajj and Umrah services. Moreover, digitization and the development of smart services offer new horizons for enhancing customer experience and operational efficiency.

Exploiting these opportunities depends on management's ability to implement effective reform plans and secure the necessary funding to update the fleet and develop services, which could pave the way for improved financial performance and stock price in the future.

Given the fluctuations in SABTCO's stock price and its sensitivity to financial and operational factors, the importance of regularly monitoring financial indicators through official sources such as the Tadawul website becomes evident. This site provides accurate data on stock price, market value, and the status of accumulated losses.

It is also crucial to follow the company's disclosures in its quarterly and annual reports, as these reports reflect operational performance, future plans, and changes in distribution policies. It is always advisable to refer to these sources before making any financial or investment decisions regarding the stock.

Keeping up with economic news and sector reports is essential for understanding general trends in the public transport market and anticipating their reflection on SABTCO's stock.