Orascom Development Egypt SAE

Orascom Development Egypt maintains a conservative capital structure with a debt-to-equity ratio of 0.69 and a current ratio of 1.55, indicating adequate short-term liquidity despite a medium liquidity risk assessment. The company holds EGP 3.63 billion in cash and equivalents against EGP 11.37 billion in long-term debt, resulting in a net cash position that is negative after subtracting total debt. Operating cash flow stands at EGP 5.02 billion, supporting a free cash flow of EGP 2.31 billion after capital expenditures of EGP 3.13 billion.

Profitability metrics are robust, with a return on equity of 38.48% and a return on assets of 10.73%. The company generates a gross profit of EGP 7.89 billion on revenue of EGP 24.95 billion, yielding an operating income of EGP 7.06 billion and net income of EGP 5.55 billion. These margins reflect efficient operations within the leisure and real estate development segment, though specific cohort median comparisons are unavailable for direct benchmarking.

Revenue concentration is not detailed by segment or geography in the available data, limiting the ability to assess specific exposure risks. The company’s activity is broadly classified under Hotels, Restaurants & Leisure, suggesting a diversified mix of leisure and hospitality assets, but precise revenue breakdowns are absent from the current disclosure.

Growth trajectory analysis is constrained by the absence of historical period data. The latest normalized period shows revenue of EGP 24.95 billion and net income of EGP 5.55 billion, but without prior year or quarterly trends, the direction and sustainability of growth cannot be quantified from the provided inputs.

Risk factors include a medium liquidity risk and low dilution risk, with a key flag noting that net cash is negative after subtracting total debt. The company’s reliance on debt financing is evident in the EGP 11.37 billion long-term debt balance, which requires careful management to maintain financial flexibility.

Recent events are highlighted by strong analyst sentiment, with a mean price target of EGP 50.70 and a mean recommendation of 1.67, indicating a strong buy consensus. The high price target of EGP 58.90 and low of EGP 43.20 suggest a wide range of expectations, but the overall positive outlook supports the company’s valuation at a P/E of 2.43 and P/B of 0.93.

Revenue grew at a 37.1% CAGR from 2022 to 2026, demonstrating strong top-line expansion.

Net income surged 78.5% year-over-year in FY2026, reaching 5.55 billion EGP.

Free cash flow jumped 143.7% year-over-year to 2.31 billion EGP in FY2026.

Analysts project 35.4% upside to a mean price target of 50.7 CAD.

Long-term debt increased to 11.37 billion EGP in FY2026, reflecting rising leverage.

Operating income declined 3.2% year-over-year in FY2026 despite revenue growth.

Debt-to-equity ratio of 0.69 is above the cohort median of 0.40.

Cash conversion ratio of 0.79 trails the cohort median of 1.2.

The company faces a medium level of liquidity risk according to risk flags.

Revenue EGP 24.95B, +14,4% YoY; Operating income −3,2% YoY.

• ▍Revenue EGP 24.95B, +14,4% YoY
• ▍Operating income −3,2% YoY
• ▍Net income +78,5% YoY
• ▍Free cash flow +143,7% YoY
• ▍Net margin 22.2%

Revenue EGP 21.79B, +42,2% YoY; Operating income +60,7% YoY.

• ▍Revenue EGP 21.79B, +42,2% YoY
• ▍Operating income +60,7% YoY
• ▍Net income +9,9% YoY
• ▍Free cash flow +2,0% YoY
• ▍Net margin 14.3%

Revenue EGP 15.33B, +49,2% YoY; Operating income +56,0% YoY.

• ▍Revenue EGP 15.33B, +49,2% YoY
• ▍Operating income +56,0% YoY
• ▍Net income +69,2% YoY
• ▍Free cash flow +23,1% YoY
• ▍Net margin 18.5%

Revenue EGP 10.27B, +45,6% YoY; Operating income +68,3% YoY.

• ▍Revenue EGP 10.27B, +45,6% YoY
• ▍Operating income +68,3% YoY
• ▍Net income +38,3% YoY
• ▍Free cash flow −28,6% YoY
• ▍Net margin 16.3%

Revenue EGP 7.05B; Operating income EGP 1.73B.

• ▍Revenue EGP 7.05B
• ▍Operating income EGP 1.73B
• ▍Net margin 17.1%