Arabian Food Industries Company SAE

Arabian Food Industries Company SAE has a debt-to-equity ratio of 1.46, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.28, suggesting it has sufficient short-term assets to cover its short-term liabilities, but with limited excess. The company's cash and equivalents amount to EGP 279.3 million, but this is offset by long-term debt of EGP 2.1 billion, resulting in a net cash position that is negative after subtracting total debt.

In terms of profitability, the company's return on equity (ROE) is 10.54%, which is a strong return relative to its equity base. However, its return on assets (ROA) is 3.5%, which is relatively modest and suggests that the company is not generating a high return relative to its total asset base. These metrics indicate that the company is generating acceptable returns for shareholders but may not be utilizing its assets as efficiently as possible.

The company's revenue is concentrated in the food processing segment, with no disclosed geographic diversification in the provided data. This lack of geographic segmentation suggests that the company's exposure is primarily to the local market, which could pose a concentration risk if regional demand fluctuates.

Looking at the company's growth trajectory, there is no specific numeric delta provided for the current or next fiscal year. However, the company's operating cash flow is negative at EGP -343.2 million, which may indicate challenges in generating sufficient cash from operations to support growth initiatives. The company's free cash flow is EGP 133.9 million, which is positive and could be used for reinvestment or debt reduction.

The company's risk profile includes a medium liquidity risk, as indicated by the current ratio and negative net cash position. The dilution risk is assessed as low, with no significant dilution potential identified in the basic shares outstanding. The company's capital structure and liquidity position suggest that it may need to manage its debt levels carefully to maintain financial stability.

Recent events and filings have not been provided in the input data, so no specific recent developments can be cited.

Revenue grew at a 29.3% CAGR over four years, demonstrating strong top-line expansion momentum.

Dilution risk is assessed as low, suggesting minimal threat to existing shareholder value.

Debt-to-equity ratio of 1.46 places the company in the bottom quartile of its cohort.

Credit risk is flagged as high, indicating significant potential for financial distress or default.

Cash conversion ratio of -2.24 ranks in the bottom quartile, reflecting poor cash generation.

Revenue EGP 2.34B; Operating income EGP 221.8M.

• ▍Revenue EGP 2.34B
• ▍Operating income EGP 221.8M
• ▍Net margin 4.0%

Revenue EGP 2.54B; Operating income EGP 342.2M.

• ▍Revenue EGP 2.54B
• ▍Operating income EGP 342.2M
• ▍Net margin 6.5%

Revenue EGP 2.06B; Operating income EGP 251.7M.

• ▍Revenue EGP 2.06B
• ▍Operating income EGP 251.7M
• ▍Net margin 4.3%

Revenue EGP 2.28B; Operating income EGP 236.4M.

• ▍Revenue EGP 2.28B
• ▍Operating income EGP 236.4M
• ▍Net margin 6.7%

Revenue EGP 9.23B, +22,9% YoY; Operating income +25,1% YoY.

• ▍Revenue EGP 9.23B, +22,9% YoY
• ▍Operating income +25,1% YoY
• ▍Net income +10,3% YoY
• ▍Free cash flow −5,4% YoY
• ▍Net margin 5.4%

Revenue EGP 7.50B, +43,8% YoY; Operating income +81,3% YoY.

• ▍Revenue EGP 7.50B, +43,8% YoY
• ▍Operating income +81,3% YoY
• ▍Net income +71,0% YoY
• ▍Free cash flow −40,8% YoY
• ▍Net margin 6.1%

Revenue EGP 5.22B, +55,3% YoY; Operating income +184,8% YoY.

• ▍Revenue EGP 5.22B, +55,3% YoY
• ▍Operating income +184,8% YoY
• ▍Net income +266,9% YoY
• ▍Free cash flow +1 946,9% YoY
• ▍Net margin 5.1%

Revenue EGP 3.36B; Operating income EGP 162.8M.

• ▍Revenue EGP 3.36B
• ▍Operating income EGP 162.8M
• ▍Net margin 2.2%