Shmoh Al-Madi SJSC

Shmoh Al-Madi SJSC maintains a strong liquidity position, with a current ratio of 2.88, indicating the company can comfortably cover its short-term liabilities with its current assets. The company holds SAR 18.86 million in cash and equivalents, which is a significant portion of its total assets of SAR 78.43 million. The liquidity risk is assessed as low, and no immediate filing-based liquidity flags were detected.

In terms of profitability, the company reports a return on equity (ROE) of 11.02% and a return on assets (ROA) of 7.25%, both of which are strong indicators of efficient capital use and asset management. The operating margin, calculated as operating income of SAR 6.05 million on revenue of SAR 37.39 million, is 16.17%, which is in line with or above the median for the food processing industry. The net profit margin of 15.20% (SAR 5.68 million on SAR 37.39 million in revenue) also reflects a healthy profitability profile.

The company's revenue is concentrated within the domestic market, with no disclosed international operations. The business is primarily driven by its core food processing activities, and there are no material revenue contributions from other segments or geographic regions. The company's exposure is therefore highly concentrated in the Kingdom of Saudi Arabia, which may present regulatory and macroeconomic risks.

Looking ahead, the company is expected to maintain a stable growth trajectory, with no significant changes in revenue or operating performance anticipated in the next fiscal year. The capital expenditure of SAR 1.49 million in the most recent period suggests a modest investment in maintaining and expanding production capacity. The company's free cash flow of SAR 446,700 indicates that it is generating positive cash flow after capital expenditures, which supports its ability to fund operations and potentially return value to shareholders.

The risk assessment for Shmoh Al-Madi SJSC is generally favorable. The company's debt-to-equity ratio of 0.15 is low, indicating a conservative capital structure with minimal reliance on debt financing. The dilution risk is also assessed as low, with no immediate filing-based dilution flags detected. The company has not issued additional shares recently, and there is no indication of near-term pressure to raise capital through equity issuance.

Recent filings and transcripts do not highlight any material events or developments that would significantly impact the company's operations or financial position. The company's financial statements and disclosures are consistent with a stable and well-managed business, with no signs of distress or significant operational challenges.

Return on equity of 11.0% is above the median of 5.0% for the peer group, showing effective capital utilization.

Free cash flow surged 277.3% year-over-year to SAR 2.4 million, highlighting significant improvement in cash generation.

Debt-to-equity ratio of 0.15 is well below the peer median of 0.32, reflecting a conservative and stable capital structure.

Revenue contracted 4.5% year-over-year to SAR 125.8 million, indicating weakening top-line growth momentum.

Cash conversion ratio of 0.92 is below the peer median of 0.98, suggesting less efficient cash flow generation.

Capex to revenue ratio of -3.99% is below the peer median, potentially indicating underinvestment in future growth.