Ash-Sharqiyah Development Company SJSC

SHADCO's capital structure shows a low debt-to-equity ratio of 0.05, indicating minimal leverage, and a current ratio of 3.12, suggesting strong short-term liquidity. However, the company reported negative operating and net income, with operating cash flow of -49.67 million SAR and free cash flow of -20.24 million SAR, signaling cash flow constraints. Profitability metrics are weak, with return on equity at -2.37% and return on assets at -1.97%, both significantly below typical thresholds for sustainable operations in the agricultural sector. Gross profit of 18.36 million SAR on revenue of 235.96 million SAR implies a gross margin of 7.78%, which is low for a vertically integrated agribusiness. The company's revenue is split between two segments: Animal Production and Agricultural Production. No geographic breakdown is provided, but the company operates entirely within Saudi Arabia. The lack of geographic diversification increases exposure to local economic and regulatory risks. Outlook for the current fiscal year shows a revenue of 235.96 million SAR, with no disclosed growth trajectory for the next fiscal year. The company's capital expenditure of -19.42 million SAR indicates ongoing investment in operations, but the negative free cash flow suggests reinvestment is not yet generating returns. Risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. However, the negative operating cash flow and free cash flow raise concerns about the company's ability to sustain operations without external financing. No dilution sources were identified in the latest filings. Recent financial filings show a last actual EPS of 0.03 SAR and revenue of 62.55 million SAR, but these figures appear inconsistent with the full-year revenue of 235.96 million SAR, suggesting potential seasonal or reporting period discrepancies.