Al Majed for Oud Company SJSC

Al Majed for Oud Company SJSC maintains a conservative capital structure with a debt-to-equity ratio of 0.35 and a strong current ratio of 3.1, indicating ample short-term liquidity to meet obligations. The balance sheet shows total assets of 905.9 million SAR against total liabilities of 321.7 million SAR, resulting in total equity of 584.3 million SAR. Long-term debt stands at 206.7 million SAR, while cash and equivalents are 70.0 million SAR, leading to a net cash position that is negative after subtracting total debt, a key flag in the risk assessment. Operating cash flow is robust at 438.6 million SAR, significantly exceeding free cash flow of 214.8 million SAR after capital expenditures of 34.6 million SAR.

Profitability metrics are exceptionally strong, with a return on equity of 37.25% and a return on assets of 24.02%, suggesting efficient use of both shareholder capital and total assets. The company generated a gross profit of 723.3 million SAR on revenue of 1.1 billion SAR, implying a gross margin of approximately 65.5%. Operating income reached 238.8 million SAR, and net income was 217.6 million SAR, reflecting a net margin of roughly 19.7%. These returns indicate a high-quality economic moat, likely driven by brand strength or product differentiation in the niche oud market, although specific cohort median comparisons are absent to benchmark these figures against industry peers.

Revenue concentration and geographic exposure details are not provided in the available data, preventing a detailed analysis of segment mix or regional risk. The company’s activity is broadly classified under personal care products, but without specific segment breakdowns, the revenue drivers remain aggregated. The lack of segment data limits the ability to assess diversification benefits or concentration risks within specific product lines or customer bases.

Growth trajectory analysis is constrained by the absence of historical period data, such as five-year annual or eight-quarter quarterly revenue and net income trends. Consequently, the company’s growth rate, momentum, and consistency over time cannot be evaluated from the provided snapshot. The current financial position reflects a single normalized period, offering a static view of performance rather than a dynamic trend analysis.

Risk factors include a medium liquidity risk rating, primarily due to the negative net cash position despite strong operating cash flows. Dilution risk is assessed as low, with basic and diluted shares outstanding both at 25.0 million, indicating no current options or convertible securities impacting share count. The key flag of negative net cash suggests that while the company generates substantial cash from operations, its debt obligations exceed its liquid assets, requiring careful management of debt maturity and refinancing risks.

Recent events and market sentiment are reflected in analyst estimates, with a mean price target of 185.60 SAR and a mean recommendation of 2.00, indicating a buy rating. There are two buy recommendations and no strong buy, hold, or sell ratings, suggesting cautious optimism among analysts. The uniformity of the price target across mean, median, high, and low values implies limited analyst coverage or a consensus view on the company’s valuation. No specific filing, news, or transcript observations are provided to detail recent corporate actions or strategic shifts.

Analysts project 37.1% upside to a consensus target price of 185.6 SAR, signaling strong institutional confidence in future valuation.

Cash conversion ratio of 2.02 exceeds the cohort median of 1.2, indicating superior efficiency in generating cash from earnings.

The company faces a medium level of liquidity risk, which could constrain financial flexibility during periods of market stress.

Revenue SAR 252.2M, +4,1% YoY; Operating income +90,2% YoY.

• ▍Revenue SAR 252.2M, +4,1% YoY
• ▍Operating income +90,2% YoY
• ▍Net income +181,2% YoY
• ▍Free cash flow −22,2% YoY
• ▍Net margin 16.8%

Revenue SAR 232.4M, +36,2% YoY; Operating income +24,5% YoY.

• ▍Revenue SAR 232.4M, +36,2% YoY
• ▍Operating income +24,5% YoY
• ▍Net income +34,3% YoY
• ▍Free cash flow +48,0% YoY
• ▍Net margin 13.0%

Revenue SAR 208.7M, −19,6% YoY; Operating income −52,2% YoY.

• ▍Revenue SAR 208.7M, −19,6% YoY
• ▍Operating income −52,2% YoY
• ▍Net income −56,1% YoY
• ▍Free cash flow −35,5% YoY
• ▍Net margin 11.7%

Revenue SAR 410.1M; Operating income SAR 128.4M.

• ▍Revenue SAR 410.1M
• ▍Operating income SAR 128.4M
• ▍Net margin 29.5%

Revenue SAR 242.3M; Operating income SAR 24.6M.

• ▍Revenue SAR 242.3M
• ▍Operating income SAR 24.6M
• ▍Net margin 6.2%

Revenue SAR 1.10B, +19,2% YoY; Operating income +32,7% YoY.

• ▍Revenue SAR 1.10B, +19,2% YoY
• ▍Operating income +32,7% YoY
• ▍Net income +38,6% YoY
• ▍Free cash flow +97,0% YoY
• ▍Net margin 19.7%

Revenue SAR 926.0M, +19,9% YoY; Operating income +8,9% YoY.

• ▍Revenue SAR 926.0M, +19,9% YoY
• ▍Operating income +8,9% YoY
• ▍Net income +5,6% YoY
• ▍Free cash flow −44,7% YoY
• ▍Net margin 17.0%