Leejam Sports Company SJSC

Leejam Sports Company SJSC maintains a capital structure with a debt-to-equity ratio of 1.69, indicating a significant reliance on debt financing. The company's liquidity position is characterized by a current ratio of 0.32, suggesting limited short-term liquidity, and a negative net cash position after subtracting total debt. The company's free cash flow of 68.14 million SAR is modest relative to its operating cash flow of 772.94 million SAR, indicating some cash flow constraints. Profitability metrics show a return on equity (ROE) of 25.4% and a return on assets (ROA) of 7.6%, both of which are strong relative to the Leisure & Recreation industry's typical performance. The company's operating income of 420.90 million SAR and net income of 304.87 million SAR reflect a healthy margin structure, with a gross profit of 615.18 million SAR on total revenue of 1.61 billion SAR. Geographically and segment-wise, the company's revenue concentration is not disclosed in the available data, but the Leisure & Recreation industry is known for its exposure to regional economic conditions and discretionary consumer spending. The company's operations are likely concentrated in Saudi Arabia, given its listing on the Saudi Stock Exchange. The company's growth trajectory is not explicitly outlined in the available data, but the Leisure & Recreation industry is expected to benefit from long-term demographic and economic trends in the Middle East. The company's capital expenditure of -373.79 million SAR suggests a net outflow in investment, which may indicate a phase of asset divestiture or restructuring. Risk factors include a medium liquidity risk due to the low current ratio and negative net cash position. The company's dilution risk is assessed as low, with no near-term pressure from share issuance or dilutive events. The risk assessment also highlights the importance of monitoring the company's debt levels and liquidity position, as these could impact its financial flexibility. Recent events include analyst estimates with a mean price target of 134.61 SAR and a median price target of 145.00 SAR, with a mean recommendation of 2.78 (1=strong buy, 5=strong sell). The company has received four "Buy" and four "Hold" recommendations, with no "Strong Buy" ratings, indicating a generally cautious outlook from analysts.