Arabian Mills for Food Products Company SCJSC

Arabian Mills for Food Products Company SCJSC maintains a debt-to-equity ratio of 1.34, indicating a moderate reliance on debt financing, and a current ratio of 1.87, suggesting reasonable short-term liquidity. The company's return on equity (ROE) is 4.99%, and return on assets (ROA) is 2.03%, both of which are below the typical thresholds for high-performing food processing firms.

The company's profitability is reflected in its gross profit of SAR 105.6 million and operating income of SAR 67.6 million, but its net income of SAR 46.1 million indicates that operating expenses and taxes are consuming a significant portion of its gross profit. These figures suggest that the company is generating returns, but not at a level that would be considered exceptional within the industry.

Arabian Mills for Food Products Company SCJSC operates as a single business segment, and its revenue is not disclosed to be concentrated in any specific geographic region. The company's total revenue of SAR 226.6 million is derived from its core food processing activities.

The company's growth trajectory is not explicitly outlined in the available data, but its capital expenditure of SAR -5.97 million suggests that it is not currently investing heavily in new projects or expansion. The company's free cash flow of SAR 63.6 million indicates that it has sufficient liquidity to fund operations and potentially return value to shareholders.

The company faces a medium liquidity risk, as indicated by its negative net cash position after subtracting total debt. The dilution risk is assessed as low, with no significant dilution potential reported in the data. The company's risk assessment does not highlight any specific regulatory or geopolitical risks that would significantly impact its operations.

Recent events and filings do not provide specific details on the company's strategic direction or operational changes. The company's financial performance and risk profile are consistent with its current operations and market position.

Operating and net margins significantly exceed Food Processing cohort medians, demonstrating best-in-class profitability efficiency.

Analysts project 25.7% upside to a mean price target of 55.5 SAR, signaling strong market confidence.

Cash conversion ratio of 3.03 ranks above the 75th percentile, indicating superior cash generation relative to peers.

Long-term debt decreased to 957.3 million SAR in FY2026, reflecting a deliberate deleveraging strategy.

Free cash flow grew 3.8% year-over-year, reaching 232.5 million SAR, supporting continued operational resilience.

Debt-to-equity ratio of 1.34 places the company in the bottom quartile, indicating excessive leverage risk.

High credit risk flags suggest potential difficulties in meeting financial obligations or securing favorable financing terms.

Revenue declined 4.5% year-over-year to 997.7 million SAR, signaling weakening top-line growth momentum.

Medium liquidity risk flags indicate potential challenges in managing short-term cash flow requirements effectively.

Revenue SAR 997.7M, +2,4% YoY; Operating income +4,3% YoY.

• ▍Revenue SAR 997.7M, +2,4% YoY
• ▍Operating income +4,3% YoY
• ▍Net income +10,9% YoY
• ▍Free cash flow −15,2% YoY
• ▍Net margin 23.8%

Revenue SAR 973.9M, +13,0% YoY; Operating income −3,6% YoY.

• ▍Revenue SAR 973.9M, +13,0% YoY
• ▍Operating income −3,6% YoY
• ▍Net income +6,7% YoY
• ▍Free cash flow +8,2% YoY
• ▍Net margin 21.9%