Saudi Arabian Oil Co

Aramco maintains a strong liquidity position with a current ratio of 2.22, supported by cash and equivalents of SAR 243.97 billion, though its free cash flow is negative at SAR -31.43 billion, reflecting significant capital expenditures of SAR -40.62 billion. The company's debt-to-equity ratio of 0.19 indicates a conservative capital structure, with long-term debt of SAR 291.83 billion compared to total equity of SAR 1.52 trillion.

Profitability metrics show a return on equity of 6.78% and return on assets of 4.17%, both below the industry median for integrated oil and gas firms. Operating income of SAR 202.05 billion and net income of SAR 103.36 billion reflect strong performance in a high-margin sector, but gross profit of SAR 251.33 billion suggests moderate cost control relative to revenue of SAR 437.85 billion.

Geographically, Aramco's revenue is heavily concentrated in the Middle East, with minimal diversification into international markets. Segment-wise, upstream operations dominate, contributing the majority of revenue and profit, while downstream and petrochemicals segments show lower margins and growth potential.

Outlook for the current fiscal year indicates a revenue growth trajectory, supported by stable crude prices and production capacity. However, the next fiscal year may see margin compression due to rising input costs and geopolitical volatility. Free cash flow is expected to remain negative as capital expenditures continue to support long-term infrastructure projects.

Risk factors include medium liquidity risk due to negative net cash after subtracting total debt, and low dilution risk as the company has not issued new shares recently. Adjustments in valuation models reflect conservative debt assumptions and a stable earnings profile.

Recent filings and transcripts highlight strategic investments in renewable energy and carbon capture, signaling a long-term shift toward sustainability. Analysts remain cautiously optimistic, with a mean price target of SAR 29.12 and a median of SAR 29.00, though a significant portion of recommendations are "hold".

This is the first analysis for Saudi Arabian Oil Company (2222.SE), meaning there is no prior basis for computing material changes or deltas in the company's profile. Consequently, no specific shifts in financials, estimates, or ESG metrics can be asserted as changes relative to a previous state. The available data indicates a sparse news environment for the ticker, with only one dispatch recorded on May 27, 2026, and zero dispatches on all other days between May 26 and June 15, 2026. This low volume of daily news activity suggests a period of relative quiet in public reporting or market commentary for the company during this window. While the company is associated with the "Global Energy Trade Update" saga, which carries an intensity score of 0.8023 and includes three posts, this thematic link does not provide specific operational or financial details for Saudi Aramco itself. The saga's presence highlights the broader context of global energy trade dynamics but does not translate into specific, attributable changes for the firm based on the provided facts. The company profile currently lists zero officers, analysts, index memberships, and top holders. This absence of detailed stakeholder or governance data in the current snapshot limits the ability to draw conclusions about market sentiment, analyst coverage, or ownership structure changes. The significance of this baseline is that it establishes a starting point for future monitoring rather than indicating a specific recent event.

Analysts project 8.3% upside to a mean price target of 29.12 SAR, reflecting a consensus buy recommendation.

Cash conversion ratio of 1.22 is more than double the cohort median of 0.59, indicating strong efficiency.

Free cash flow improved by 56.1% year-over-year in FY2026, reaching -67.6 billion SAR from a larger deficit.

Free cash flow turned negative in FY2026 at -67.6 billion SAR, reversing the positive generation seen in FY2023 and FY2024.

Long-term debt increased to 363.6 billion SAR in FY2026, rising from 290.1 billion SAR in FY2024.

Capital expenditure intensity is in the bottom quartile of the cohort, suggesting potentially insufficient investment for future growth.

Revenue SAR 416.29B, −2,9% YoY; Operating income −10,7% YoY.

• ▍Revenue SAR 416.29B, −2,9% YoY
• ▍Operating income −10,7% YoY
• ▍Net income −19,9% YoY
• ▍Free cash flow +30,2% YoY
• ▍Net margin 16.7%

Revenue SAR 418.16B, −10,0% YoY; Operating income +0,4% YoY.

• ▍Revenue SAR 418.16B, −10,0% YoY
• ▍Operating income +0,4% YoY
• ▍Net income −0,4% YoY
• ▍Free cash flow +90,3% YoY
• ▍Net margin 23.3%

Revenue SAR 407.14B, −13,5% YoY; Operating income −19,1% YoY.

• ▍Revenue SAR 407.14B, −13,5% YoY
• ▍Operating income −19,1% YoY
• ▍Net income −19,3% YoY
• ▍Free cash flow +35,3% YoY
• ▍Net margin 21.0%

Revenue SAR 429.61B, −1,9% YoY; Operating income −5,3% YoY.

• ▍Revenue SAR 429.61B, −1,9% YoY
• ▍Operating income −5,3% YoY
• ▍Net income −7,4% YoY
• ▍Free cash flow +78,6% YoY
• ▍Net margin 22.3%

Revenue SAR 428.59B; Operating income SAR 173.31B.

• ▍Revenue SAR 428.59B
• ▍Operating income SAR 173.31B
• ▍Net margin 20.2%

Revenue SAR 464.62B; Operating income SAR 192.81B.

• ▍Revenue SAR 464.62B
• ▍Operating income SAR 192.81B
• ▍Net margin 21.0%

Revenue SAR 470.61B; Operating income SAR 206.45B.

• ▍Revenue SAR 470.61B
• ▍Operating income SAR 206.45B
• ▍Net margin 22.6%

Revenue SAR 437.85B; Operating income SAR 202.05B.

• ▍Revenue SAR 437.85B
• ▍Operating income SAR 202.05B
• ▍Net margin 23.6%

Revenue SAR 1.67T, −7,2% YoY; Operating income −8,8% YoY.

• ▍Revenue SAR 1.67T, −7,2% YoY
• ▍Operating income −8,8% YoY
• ▍Net income −11,6% YoY
• ▍Free cash flow +56,1% YoY
• ▍Net margin 20.8%

Revenue SAR 1.80T, −3,0% YoY; Operating income −11,4% YoY.

• ▍Revenue SAR 1.80T, −3,0% YoY
• ▍Operating income −11,4% YoY
• ▍Net income −13,0% YoY
• ▍Free cash flow −682,1% YoY
• ▍Net margin 21.9%

Revenue SAR 1.86T, −18,1% YoY; Operating income −23,8% YoY.

• ▍Revenue SAR 1.86T, −18,1% YoY
• ▍Operating income −23,8% YoY
• ▍Net income −24,2% YoY
• ▍Free cash flow −90,3% YoY
• ▍Net margin 24.4%

Revenue SAR 2.27T, +50,9% YoY; Operating income +48,6% YoY.

• ▍Revenue SAR 2.27T, +50,9% YoY
• ▍Operating income +48,6% YoY
• ▍Net income +51,1% YoY
• ▍Free cash flow +182,0% YoY
• ▍Net margin 26.4%