Arabian Contracting Services Company SJSC

Arabian Contracting Services Company SJSC maintains a highly leveraged capital structure, with total liabilities of 6.70 billion SAR against total equity of 1.55 billion SAR. The debt-to-equity ratio stands at 3.86, indicating significant reliance on debt financing. Long-term debt comprises 5.99 billion SAR, while cash and equivalents total only 203.5 million SAR, resulting in a negative net cash position. Liquidity is constrained, as evidenced by a current ratio of 0.7, which falls below the standard threshold of 1.0 for short-term solvency. Operating cash flow is modest at 44.3 million SAR, while free cash flow is reported at 778.4 million SAR, driven by negative capital expenditures of -164.6 million SAR.

Profitability metrics show a return on equity of 14.09% and a return on assets of 2.65%. The company generated a gross profit of 789.5 million SAR on revenue of 1.95 billion SAR, yielding a gross margin of approximately 40.4%. Operating income reached 543.1 million SAR, translating to an operating margin of roughly 27.8%. Net income was 188.0 million SAR, resulting in a net margin of approximately 9.6%. Without cohort median data for direct comparison, these margins suggest a profitable operation, though the high leverage amplifies financial risk relative to the asset base.

Segment and geographic revenue breakdowns are not provided in the available data. The company’s revenue concentration risks cannot be assessed due to the absence of segment or regional disclosure. The classification source indicates an unclassified activity, limiting the ability to contextualize revenue streams within specific industry sub-sectors.

Historical revenue and net income trends are not available in the input data. Consequently, the growth trajectory cannot be evaluated using multi-period analysis. The current financial snapshot provides a single-period view, preventing assessment of momentum or cyclical patterns in revenue generation.

Risk assessment highlights medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, underscoring the company’s reliance on external financing. The low dilution risk is supported by the fact that basic and diluted shares outstanding are identical at 55 million shares, indicating no significant options or convertible securities currently impacting share count.

Recent observations include analyst estimates with a mean price target of 102.67 SAR and a median target of 100.00 SAR. The mean recommendation is 3.00, indicating a neutral stance, with two hold ratings and no buy or strong-buy recommendations. The high price target is 114.00 SAR, and the low is 94.00 SAR, reflecting a moderate range of analyst expectations. No specific filing, news, or transcript events are detailed in the available data.

Analysts project 9.7% upside to a mean price target of 102.67 SAR, suggesting undervaluation at current levels.

Free cash flow generation remains robust at 778 million SAR in FY2026, supporting liquidity and potential dividend capacity.

Debt-to-equity ratio of 3.86 is in the bottom quartile, signaling excessive leverage and elevated financial risk.

High credit risk flag indicates significant potential for loan defaults or counterparty failures impacting financial stability.

Cash conversion ratio of 0.2 is in the bottom quartile, suggesting poor efficiency in converting earnings to cash.

Revenue SAR 519.9M; Operating income SAR 320.6M.

• ▍Revenue SAR 519.9M
• ▍Operating income SAR 320.6M
• ▍Net margin 15.2%

Revenue SAR 352.9M; Operating income SAR 68.6M.

• ▍Revenue SAR 352.9M
• ▍Operating income SAR 68.6M
• ▍Net margin 12.6%

Revenue SAR 374.1M; Operating income SAR 98.2M.

• ▍Revenue SAR 374.1M
• ▍Operating income SAR 98.2M
• ▍Net margin 12.7%

Revenue SAR 1.95B, +15,8% YoY; Operating income −16,0% YoY.

• ▍Revenue SAR 1.95B, +15,8% YoY
• ▍Operating income −16,0% YoY
• ▍Net income −30,7% YoY
• ▍Free cash flow +31,7% YoY
• ▍Net margin 9.6%

Revenue SAR 1.69B, +31,7% YoY; Operating income +43,1% YoY.

• ▍Revenue SAR 1.69B, +31,7% YoY
• ▍Operating income +43,1% YoY
• ▍Net income −14,8% YoY
• ▍Free cash flow −11,6% YoY
• ▍Net margin 16.1%

Revenue SAR 1.28B, +13,7% YoY; Operating income +17,7% YoY.

• ▍Revenue SAR 1.28B, +13,7% YoY
• ▍Operating income +17,7% YoY
• ▍Net income +15,8% YoY
• ▍Free cash flow +26,2% YoY
• ▍Net margin 24.9%

Revenue SAR 1.13B, +56,3% YoY; Operating income +46,9% YoY.

• ▍Revenue SAR 1.13B, +56,3% YoY
• ▍Operating income +46,9% YoY
• ▍Net income +33,2% YoY
• ▍Free cash flow +19,4% YoY
• ▍Net margin 24.4%