Walaa Cooperative Insurance Company SJSC

Capital Structure and Liquidity Walaa Cooperative Insurance Company SJSC maintains a low debt-to-equity ratio of 0.01, indicating a conservative capital structure with minimal leverage. The company holds SAR 407.07 million in cash and equivalents, which represents 24.37% of total assets, suggesting strong liquidity. However, the operating cash flow of -SAR 545.897 million and free cash flow of -SAR 160.273 million indicate ongoing cash outflows from operations. ### Profitability and Returns The company reported a net loss of SAR 175.816 million and an operating loss of SAR 155.084 million, resulting in a negative return on equity of -10.53% and a return on assets of -3.22%. These figures are below the typical performance metrics for the Property & Casualty Insurance industry, which usually expects positive returns on equity and assets. ### Segments and Geographic Exposure The company operates in seven segments, with medical, motor, and property insurance being the primary revenue contributors. The geographic exposure is concentrated in Saudi Arabia, with no disclosed international operations. The revenue concentration by segment is not provided, but the disclosed segments suggest a diversified product offering within the domestic market. ### Growth Trajectory The company's recent financial performance shows a decline in profitability, with a net loss and negative operating income. Analysts have assigned a mean recommendation of 3.00 (Hold), with no strong buy or buy ratings. The mean price target of SAR 18.70 suggests limited upside potential in the near term. ### Risk Factors The company faces low liquidity risk, as evidenced by its high cash reserves relative to liabilities. However, the negative operating and free cash flows indicate potential challenges in sustaining operations without external financing. The dilution risk is assessed as low, with no immediate filing-based flags detected. The company has not issued additional shares recently, and there is no indication of dilution pressure in the near term. ### Recent Events No recent filings or transcripts have been disclosed that would indicate significant changes in the company's operations or financial strategy. The company's performance remains consistent with its recent financial reports, with no major events reported that would alter its trajectory.