Al Rajhi Banking and Investment Corporation SJSC

Al Rajhi Banking and Investment Corporation maintains a capital structure characterized by significant leverage typical of the banking industry, with total assets of SAR 1,043.3 billion and total liabilities of SAR 900.5 billion. The company holds total equity of SAR 142.8 billion and long-term debt of SAR 80.3 billion, resulting in a debt-to-equity ratio of 0.56. Liquidity risk is assessed as medium, with a key flag noting that net cash is negative after subtracting total debt. Operating cash flow stands at negative SAR 22.4 billion, while free cash flow is positive at SAR 14.8 billion, driven by capital expenditures of SAR 3.5 billion.

Profitability metrics indicate strong returns on capital, with a return on equity of 17.96% and a return on assets of 2.46%. The company reported net income of SAR 24.8 billion against revenue of SAR 29.8 billion, demonstrating a high net profit margin inherent to its business model. Without cohort median data for direct comparison, these returns are evaluated against general banking industry standards, where ROE above 15% is typically considered robust.

Segment and geographic revenue concentration data is not provided in the available input, preventing a detailed analysis of revenue mix by business line or region. The company’s primary operations are inferred to be within Saudi Arabia based on its ticker and currency denomination, but specific exposure details are omitted due to data absence.

Growth trajectory analysis is limited by the absence of historical period data in the input, preventing a year-over-year or quarter-over-quarter trend assessment of revenue and net income. The current financial snapshot provides a static view of performance without the temporal context required to evaluate growth momentum.

Risk assessment highlights medium liquidity risk and low dilution risk, with the primary concern being the negative net cash position after debt subtraction. The dilution risk is low, supported by the fact that basic and diluted shares outstanding are identical at 6.0 billion shares, indicating no significant convertible securities or options impacting share count.

Recent observations from investor relations data show a mean analyst price target of 77.33 SAR, with a median target of 76.67 SAR and a range between 69.50 SAR and 84.00 SAR. The mean recommendation is 2.18, indicating a moderate buy sentiment, with 3 strong buys, 8 buys, and 6 holds among analysts. No specific filing, news, or transcript observations were provided in the input data.

Net income surged 25.7% year-over-year to SAR 24.8 billion, demonstrating robust profitability growth.

Revenue grew 20.1% to SAR 29.8 billion, indicating strong top-line expansion in the latest fiscal year.

Analysts project 16.6% upside to a mean price target of SAR 77.33, signaling positive market sentiment.

Long-term debt skyrocketed to SAR 80.3 billion in FY2026, a massive increase from SAR 8.9 billion prior.

Cash conversion ratio of -0.87 places the company in the bottom quartile, indicating poor cash generation.

The company faces medium liquidity risk, which could constrain operational flexibility or increase financing costs.

Debt-to-equity ratio of 0.56 is above the cohort median of 0.40, suggesting higher financial leverage.

Revenue SAR 8.40B, +18,4% YoY; Net income +14,3% YoY.

• ▍Revenue SAR 8.40B, +18,4% YoY
• ▍Net income +14,3% YoY
• ▍Free cash flow +17,2% YoY
• ▍Net margin 80.3%

Revenue SAR 8.15B, +17,4% YoY; Net income +15,6% YoY.

• ▍Revenue SAR 8.15B, +17,4% YoY
• ▍Net income +15,6% YoY
• ▍Free cash flow +8,8% YoY
• ▍Net margin 78.2%

Revenue SAR 7.29B, +14,0% YoY; Net income +24,6% YoY.

• ▍Revenue SAR 7.29B, +14,0% YoY
• ▍Net income +24,6% YoY
• ▍Free cash flow +3 140,8% YoY
• ▍Net margin 87.2%

Revenue SAR 7.31B, +24,7% YoY; Net income +30,9% YoY.

• ▍Revenue SAR 7.31B, +24,7% YoY
• ▍Net income +30,9% YoY
• ▍Free cash flow +46,8% YoY
• ▍Net margin 84.2%

Revenue SAR 7.10B; Net margin 83.2%.

• ▍Revenue SAR 7.10B
• ▍Net margin 83.2%

Revenue SAR 6.94B; Net margin 79.5%.

• ▍Revenue SAR 6.94B
• ▍Net margin 79.5%

Revenue SAR 6.40B; Net margin 79.8%.

• ▍Revenue SAR 6.40B
• ▍Net margin 79.8%

Revenue SAR 5.86B; Net margin 80.2%.

• ▍Revenue SAR 5.86B
• ▍Net margin 80.2%

Revenue SAR 29.85B, +20,1% YoY; Net income +25,7% YoY.

• ▍Revenue SAR 29.85B, +20,1% YoY
• ▍Net income +25,7% YoY
• ▍Free cash flow +73,5% YoY
• ▍Net margin 83.1%

Revenue SAR 24.84B, +16,8% YoY; Net income +18,7% YoY.

• ▍Revenue SAR 24.84B, +16,8% YoY
• ▍Net income +18,7% YoY
• ▍Free cash flow +73,7% YoY
• ▍Net margin 79.4%

Revenue SAR 21.27B, −4,1% YoY; Net income −3,1% YoY.

• ▍Revenue SAR 21.27B, −4,1% YoY
• ▍Net income −3,1% YoY
• ▍Free cash flow −68,5% YoY
• ▍Net margin 78.1%

Revenue SAR 22.17B, +8,7% YoY; Net income +16,3% YoY.

• ▍Revenue SAR 22.17B, +8,7% YoY
• ▍Net income +16,3% YoY
• ▍Free cash flow +108,5% YoY
• ▍Net margin 77.4%