Savola Group Company SJSC

Savola Group maintains a debt-to-equity ratio of 1.4, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.87, suggesting that its current liabilities exceed its current assets. This is further supported by the negative net cash position after subtracting total debt.

Profitability metrics for Savola Group are below typical industry benchmarks. The company's return on equity (ROE) is 1.57%, and its return on assets (ROA) is 0.46%, both of which are relatively low for a food processing firm. These figures suggest that the company is not generating strong returns relative to its equity and asset base.

The company's revenue is concentrated in a single economic region, with no disclosed geographic diversification. This lack of geographic spread increases exposure to regional economic and regulatory risks. The company's operating cash flow is negative at -112.2 million SAR, which may indicate challenges in maintaining consistent cash generation from operations.

Looking ahead, Savola Group's revenue is expected to remain stable, with no significant growth anticipated in the next fiscal year. The company's capital expenditure of -339.5 million SAR suggests a reduction in investment in new projects or infrastructure. This may reflect a strategic shift or financial constraints.

The risk assessment for Savola Group highlights a medium liquidity risk and a low dilution risk. The company's negative net cash position after subtracting total debt is a key flag, indicating potential challenges in meeting short-term obligations. No significant dilution events are expected in the near term, and the company has not issued new shares recently.

Recent investor relations data shows a mixed analyst sentiment, with a mean recommendation of 2.67 (on a scale from 1 to 5). The mean price target is 31.99 SAR, with a median of 32.50 SAR. Analysts have issued one strong-buy, two buy, and five hold ratings, indicating a cautious outlook.

Analysts project 11.4% upside to a mean price target of SAR 31.99, suggesting undervaluation relative to current market price.

Long-term debt decreased to SAR 5.8 billion in FY2026, reflecting a deleveraging trend from SAR 12.3 billion in FY2022.

Revenue CAGR of 1.4% over four years demonstrates modest but consistent top-line growth despite recent volatility.

Dilution risk is assessed as low, providing reassurance to existing shareholders regarding potential equity issuance impacts.

Debt-to-equity ratio of 1.4 places the company in the bottom quartile of the Food Processing cohort, indicating high leverage.

Credit risk is flagged as high, raising concerns about the company's ability to meet its financial obligations.

Revenue SAR 7.29B, −4,0% YoY; Operating income +5,4% YoY.

• ▍Revenue SAR 7.29B, −4,0% YoY
• ▍Operating income +5,4% YoY
• ▍Net income +50,4% YoY
• ▍Free cash flow +6,4% YoY
• ▍Net margin 3.9%

Revenue SAR 5.80B, +21,6% YoY; Operating income −98,2% YoY.

• ▍Revenue SAR 5.80B, +21,6% YoY
• ▍Operating income −98,2% YoY
• ▍Net income −97,9% YoY
• ▍Free cash flow −98,4% YoY
• ▍Net margin 3.3%

Revenue SAR 6.63B, +17,9% YoY; Operating income −37,2% YoY.

• ▍Revenue SAR 6.63B, +17,9% YoY
• ▍Operating income −37,2% YoY
• ▍Net income +113,0% YoY
• ▍Free cash flow +103,3% YoY
• ▍Net margin 5.8%

Revenue SAR 6.06B, +18,2% YoY; Operating income −33,5% YoY.

• ▍Revenue SAR 6.06B, +18,2% YoY
• ▍Operating income −33,5% YoY
• ▍Net income −21,9% YoY
• ▍Free cash flow −17,1% YoY
• ▍Net margin 1.7%

Revenue SAR 7.60B; Operating income SAR 400.3M.

• ▍Revenue SAR 7.60B
• ▍Operating income SAR 400.3M
• ▍Net margin 2.5%

Revenue SAR 4.77B; Operating income SAR 11.22B.

• ▍Revenue SAR 4.77B
• ▍Operating income SAR 11.22B
• ▍Net margin 195.2%

Revenue SAR 5.62B; Operating income SAR 439.9M.

• ▍Revenue SAR 5.62B
• ▍Operating income SAR 439.9M
• ▍Net margin 3.2%

Revenue SAR 5.13B; Operating income SAR 384.7M.

• ▍Revenue SAR 5.13B
• ▍Operating income SAR 384.7M
• ▍Net margin 2.6%

Revenue SAR 26.08B, +8,7% YoY; Operating income −91,2% YoY.

• ▍Revenue SAR 26.08B, +8,7% YoY
• ▍Operating income −91,2% YoY
• ▍Net income −91,2% YoY
• ▍Free cash flow −89,1% YoY
• ▍Net margin 3.4%

Revenue SAR 23.99B, −0,7% YoY; Operating income +518,6% YoY.

• ▍Revenue SAR 23.99B, −0,7% YoY
• ▍Operating income +518,6% YoY
• ▍Net income +1 009,3% YoY
• ▍Free cash flow +1 327,0% YoY
• ▍Net margin 41.6%

Revenue SAR 24.15B, −13,9% YoY; Operating income +21,7% YoY.

• ▍Revenue SAR 24.15B, −13,9% YoY
• ▍Operating income +21,7% YoY
• ▍Net income +21,1% YoY
• ▍Free cash flow −14,4% YoY
• ▍Net margin 3.7%

Revenue SAR 28.05B, +13,7% YoY; Operating income +68,2% YoY.

• ▍Revenue SAR 28.05B, +13,7% YoY
• ▍Operating income +68,2% YoY
• ▍Net income +234,8% YoY
• ▍Free cash flow +65,1% YoY
• ▍Net margin 2.6%