Kingdom Holding Company SJSC

Kingdom Holding Company SJSC maintains a capital structure with a debt-to-equity ratio of 0.38, indicating a relatively conservative leverage position. The company's liquidity position is assessed as medium, with a current ratio of 0.79, suggesting limited short-term liquidity coverage. Free cash flow of SAR 287.5 million and operating cash flow of SAR 586 million support operational flexibility, though net cash is negative after subtracting total debt.

Profitability metrics show a return on equity (ROE) of 1.73% and a return on assets (ROA) of 1.16%, both below the typical thresholds for high-performing investment holding companies. Operating income of SAR 868.3 million and net income of SAR 624.2 million reflect a strong earnings base, but the ROE suggests underutilization of equity capital.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the provided data. This lack of segmental or geographic diversification increases exposure to sector-specific risks.

Looking ahead, the company is projected to maintain stable revenue, with no significant growth expected in the next fiscal year. Capital expenditures are negative, indicating asset disposals or reduced investment activity. The absence of analyst downgrades and a mean recommendation of 2.00 suggest moderate confidence in the company's near-term performance.

Risk factors include medium liquidity risk and a negative net cash position after debt, which could constrain operational flexibility. Dilution risk is assessed as low, with no near-term pressure from share issuance or convertible instruments. The company's conservative leverage and strong equity base mitigate credit risk.

Recent filings and transcripts do not indicate material changes in strategy or operations, and the company's financial performance remains consistent with historical trends.

Net income surged 73.3% year-over-year to SAR 2.14 billion in FY2026, demonstrating strong profitability growth.

Free cash flow jumped 981% year-over-year to SAR 808 million in FY2026, highlighting robust cash generation capabilities.

Revenue grew at a 15.6% CAGR over four years, reflecting consistent top-line expansion for the holding company.

The company faces high credit risk, posing a significant threat to financial stability and potential asset quality.

Debt-to-equity ratio of 0.38 places the company in the bottom quartile of its peer cohort.

Medium liquidity risk suggests potential challenges in meeting short-term obligations or managing cash flow volatility.

Only one analyst covers the stock, limiting market consensus and potentially increasing valuation uncertainty.

Revenue SAR 2.69B, +12,6% YoY; Operating income +31,3% YoY.

• ▍Revenue SAR 2.69B, +12,6% YoY
• ▍Operating income +31,3% YoY
• ▍Net income +73,3% YoY
• ▍Free cash flow +981,0% YoY
• ▍Net margin 79.6%

Revenue SAR 2.39B, −11,6% YoY; Operating income −4,4% YoY.

• ▍Revenue SAR 2.39B, −11,6% YoY
• ▍Operating income −4,4% YoY
• ▍Net income +22,1% YoY
• ▍Free cash flow +1 090,4% YoY
• ▍Net margin 51.7%

Revenue SAR 2.70B, +8,5% YoY; Operating income −68,4% YoY.

• ▍Revenue SAR 2.70B, +8,5% YoY
• ▍Operating income −68,4% YoY
• ▍Net income −85,4% YoY
• ▍Free cash flow −99,9% YoY
• ▍Net margin 37.5%

Revenue SAR 2.49B, +65,2% YoY; Operating income +355,6% YoY.

• ▍Revenue SAR 2.49B, +65,2% YoY
• ▍Operating income +355,6% YoY
• ▍Net income +583,9% YoY
• ▍Free cash flow +1 621,5% YoY
• ▍Net margin 279.2%

Revenue SAR 1.51B; Operating income SAR 1.74B.

• ▍Revenue SAR 1.51B
• ▍Operating income SAR 1.74B
• ▍Net margin 67.5%