The Cream of The Crop

Happy Sunday!

If you’re reading this, it can only mean one thing:

👏You’re Committed to Your Financial Future.
👉 And We Drilled Deep on a Stock for You.

Now that the yap has been yapped, let’s dig in.

It’s commonly assumed that Saudi Arabia is all desert. And… well, it is.

Vast stretches of sand and blistering heat don’t exactly scream agriculture. As a result, the Kingdom imports nearly 80% of its food.

But that’s changing.

As part of Vision 2030, Saudi Arabia is prioritizing food security and pushing to reduce reliance on imports. And there’s one stock we believe will ride this wave perfectly.

The National Agricultural Development Company is at the heart of this transformation.

They operate four major agricultural projects across Saudi Arabia:

In 2006, NADEC doubled down on olive production. Today, it owns one of the largest olive farms in the world—with over 5 million olive trees. In the past year alone, they grew market share by 4.9%.

They also own significant stakes in other agricultural firms, solidifying their dominance.

We ripped through three years of annual reports so you don’t have to. Here’s what stood out:

The trend is clear:
Margins up. Cash up. ROE up.

Management is proving itself to be a strong capital allocator. The 18% ROE tells us they’re squeezing value from every riyal.

One area to watch: Inventory Days are creeping up. That’s how long they hold stock before it’s sold. If much of that stock is perishable (like milk or meat), it’s a signal for tighter operational controls.

Fortress Balance Sheet

NADEC holds nearly SAR 2 billion in cash—about a third of its market cap.

Let that sink in.

They also maintain low debt-to-equity ratios, giving them headroom to grow without external pressure.

Our Take

This is what we call a special situation:

It checks every box—and it’s doing so in one of the world’s wealthiest, fastest-changing economies.

We Hope You enjoyed our content, we’ll go hunt for the next one!