Mobile Telecommunications Company Saudi Arabia SJSC

The company maintains a leveraged capital structure, with long-term debt of SAR 10.61 billion against total equity of SAR 10.87 billion, resulting in a debt-to-equity ratio of 0.98. Liquidity is assessed as medium risk, supported by a current ratio of 1.28, which indicates adequate short-term asset coverage for liabilities. However, the balance sheet shows limited cash reserves of SAR 150 million, leading to a negative net cash position after accounting for total debt. Operating cash flow stands at SAR 1.78 billion, while free cash flow is SAR 1.82 billion, demonstrating the ability to generate cash from core operations despite the debt load.

Profitability metrics indicate modest returns on capital. Return on equity is 6.55%, and return on assets is 2.47%, reflecting the capital-intensive nature of the telecommunications infrastructure. The company reported revenue of SAR 10.98 billion, with gross profit of SAR 6.57 billion and operating income of SAR 1.31 billion. Net income for the period was SAR 603.5 million. These figures suggest that while the top-line revenue is substantial, operating leverage and net margins are constrained by the high fixed costs and debt servicing requirements typical of the sector.

Segment and geographic data are not explicitly detailed in the available financial snapshot, but the classification as an integrated telecommunications provider in Saudi Arabia implies a concentrated geographic exposure to the domestic market. The revenue mix is likely dominated by wireless services, consistent with the sector classification industry code for Wireless Telecommunication Services. Without specific segment breakdowns, the analysis assumes a unified operational model focused on the Saudi consumer and enterprise markets.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot provides a single-period view, preventing a year-over-year or quarter-over-quarter trend analysis. Consequently, the growth narrative relies on the current scale of operations, with SAR 10.98 billion in revenue serving as the baseline for future performance expectations.

Risk factors include medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, highlighting the company's reliance on operating cash flows to service its obligations. The dilution risk is low, as basic and diluted shares outstanding are identical at 898.7 million, indicating no significant options or convertible securities currently impacting the share count.

Recent observations from investor relations data show a mean analyst price target of 11.38 SAR, with a median of 11.50 SAR. The mean recommendation is 3.25, indicating a neutral stance, with four hold ratings and one buy rating among the analysts covering the stock. There are no strong buy recommendations, suggesting cautious market sentiment regarding the company's near-term upside potential.

Revenue grew at an 8.6% CAGR over four years, reaching SAR 10.98 billion in fiscal 2026.

Operating margin of 11.9% exceeds the 9.5% median for the integrated telecommunications services cohort.

Free cash flow increased 8.3% year-over-year to SAR 1.82 billion in fiscal 2026.

Analysts project 4.5% upside to a mean price target of SAR 11.375.

The company carries a high credit risk flag, indicating significant potential financial distress.

Debt-to-equity ratio of 0.98 is more than double the 0.46 cohort median.

Net income growth slowed to just 1.2% year-over-year in fiscal 2026.

Long-term debt increased to SAR 10.61 billion in fiscal 2026, up from SAR 7.80 billion in 2022.

The company faces a medium liquidity risk flag, suggesting potential cash flow constraints.

Revenue SAR 2.66B, −1,3% YoY; Operating income −5,1% YoY.

• ▍Revenue SAR 2.66B, −1,3% YoY
• ▍Operating income −5,1% YoY
• ▍Net income +116,4% YoY
• ▍Free cash flow +88,8% YoY
• ▍Net margin 7.6%

Revenue SAR 2.89B, +7,2% YoY; Operating income +6,9% YoY.

• ▍Revenue SAR 2.89B, +7,2% YoY
• ▍Operating income +6,9% YoY
• ▍Net income −16,0% YoY
• ▍Free cash flow +25,4% YoY
• ▍Net margin 8.0%

Revenue SAR 2.75B, +6,5% YoY; Operating income +0,1% YoY.

• ▍Revenue SAR 2.75B, +6,5% YoY
• ▍Operating income +0,1% YoY
• ▍Net income +1,7% YoY
• ▍Free cash flow −62,7% YoY
• ▍Net margin 5.6%

Revenue SAR 2.65B, +4,0% YoY; Operating income +26,3% YoY.

• ▍Revenue SAR 2.65B, +4,0% YoY
• ▍Operating income +26,3% YoY
• ▍Net income +21,1% YoY
• ▍Free cash flow +429,6% YoY
• ▍Net margin 4.8%

Revenue SAR 2.69B; Operating income SAR 274.0M.

• ▍Revenue SAR 2.69B
• ▍Operating income SAR 274.0M
• ▍Net margin 3.4%

Revenue SAR 2.69B; Operating income SAR 388.8M.

• ▍Revenue SAR 2.69B
• ▍Operating income SAR 388.8M
• ▍Net margin 10.2%

Revenue SAR 2.58B; Operating income SAR 317.9M.

• ▍Revenue SAR 2.58B
• ▍Operating income SAR 317.9M
• ▍Net margin 5.8%

Revenue SAR 2.55B; Operating income SAR 241.7M.

• ▍Revenue SAR 2.55B
• ▍Operating income SAR 241.7M
• ▍Net margin 4.1%

Revenue SAR 10.98B, +6,0% YoY; Operating income +10,2% YoY.

• ▍Revenue SAR 10.98B, +6,0% YoY
• ▍Operating income +10,2% YoY
• ▍Net income +1,2% YoY
• ▍Free cash flow +8,3% YoY
• ▍Net margin 5.5%

Revenue SAR 10.37B, +4,9% YoY; Operating income +36,8% YoY.

• ▍Revenue SAR 10.37B, +4,9% YoY
• ▍Operating income +36,8% YoY
• ▍Net income −52,9% YoY
• ▍Free cash flow +19,4% YoY
• ▍Net margin 5.8%

Revenue SAR 9.88B, +8,9% YoY; Operating income −20,0% YoY.

• ▍Revenue SAR 9.88B, +8,9% YoY
• ▍Operating income −20,0% YoY
• ▍Net income +130,5% YoY
• ▍Free cash flow +12,0% YoY
• ▍Net margin 12.8%

Revenue SAR 9.08B, +14,9% YoY; Operating income +55,9% YoY.

• ▍Revenue SAR 9.08B, +14,9% YoY
• ▍Operating income +55,9% YoY
• ▍Net income +156,5% YoY
• ▍Free cash flow −15,8% YoY
• ▍Net margin 6.1%