Saudi Tadawul Group Holding Company SJSC

Saudi Tadawul Group maintains a conservative capital structure with a debt-to-equity ratio of 0.17, indicating limited leverage relative to its equity base of 3.44 billion SAR. The company holds 16.5 million SAR in cash and equivalents against 586.8 million SAR in long-term debt, resulting in a negative net cash position. Liquidity is assessed as medium, supported by a current ratio of 1.47, which suggests adequate short-term asset coverage for liabilities. Operating cash flow stands at 514.4 million SAR, providing a buffer against the negative free cash flow of -68.6 million SAR driven by capital expenditures of 193.4 million SAR.

Profitability metrics show a return on equity of 9.61% and a return on assets of 3.83%, reflecting moderate efficiency in generating earnings from its asset base of 8.64 billion SAR. The company reported net income of 395.6 million SAR on revenue of 1.26 billion SAR, yielding a net margin of approximately 31.4%. Operating income of 322.7 million SAR indicates strong operational leverage, with gross profit of 716.3 million SAR representing a gross margin of 56.8%. Without cohort median data for direct comparison, these returns are evaluated against the general expectations for capital markets firms, where high fixed costs and variable revenue streams typically pressure margins during market volatility.

Revenue concentration and segment details are not explicitly broken down in the available data, limiting the ability to assess specific business line contributions. The company’s total revenue of 1.26 billion SAR is attributed to its core activities within the Capital Markets industry, but specific geographic or segmental exposure remains undisclosed in the provided snapshot. This lack of granularity prevents a detailed analysis of revenue diversification or regional risk factors.

Growth trajectory analysis is constrained by the absence of historical period data, preventing a year-over-year or quarter-over-quarter trend assessment. The current financial snapshot provides a single-period view of performance, with no prior period comparisons available to determine revenue or earnings momentum. Consequently, the sustainability of the current profitability levels and the direction of future growth remain unclear from the provided data.

Risk assessment highlights medium liquidity risk and low dilution risk, with a key flag noting the negative net cash position after subtracting total debt. The dilution risk is low, as basic and diluted shares outstanding are identical at 120 million shares, indicating no significant options or convertible securities impacting share count. The negative free cash flow, driven by capital expenditures exceeding operating cash flow, poses a potential strain on liquidity if not managed through debt or equity financing, though the current debt levels remain manageable.

Recent investor relations observations indicate a mean analyst price target of 162.86 SAR, with a median target of 156.00 SAR, suggesting moderate upside potential from current levels. The mean recommendation of 2.50 reflects a neutral stance, with one strong buy, one buy, and four hold ratings among analysts. The price target range spans from 141.00 SAR to 197.60 SAR, indicating varying expectations among analysts regarding the company’s future performance and market conditions.

Analysts project 18.4% upside to a mean price target of 162.86 SAR, reflecting a buy recommendation.

Debt-to-equity ratio of 0.17 is below the 0.40 cohort median, indicating a conservative leverage profile.

Long-term debt surged to 586.8 million SAR, more than doubling from the previous year's level.

The company faces medium liquidity and credit risks, posing potential challenges to financial stability.

Revenue SAR 294.6M, −10,3% YoY; Operating income −63,6% YoY.

• ▍Revenue SAR 294.6M, −10,3% YoY
• ▍Operating income −63,6% YoY
• ▍Net income −53,8% YoY
• ▍Free cash flow −26,9% YoY
• ▍Net margin 18.9%

Revenue SAR 296.3M, −14,4% YoY; Operating income −29,2% YoY.

• ▍Revenue SAR 296.3M, −14,4% YoY
• ▍Operating income −29,2% YoY
• ▍Net income −17,2% YoY
• ▍Free cash flow −77,0% YoY
• ▍Net margin 32.5%

Revenue SAR 317.8M, −11,5% YoY; Operating income −49,0% YoY.

• ▍Revenue SAR 317.8M, −11,5% YoY
• ▍Operating income −49,0% YoY
• ▍Net income −41,1% YoY
• ▍Free cash flow −12,2% YoY
• ▍Net margin 26.0%

Revenue SAR 318.9M, −9,8% YoY; Operating income −46,4% YoY.

• ▍Revenue SAR 318.9M, −9,8% YoY
• ▍Operating income −46,4% YoY
• ▍Net income −41,2% YoY
• ▍Free cash flow −33,5% YoY
• ▍Net margin 30.2%

Revenue SAR 328.2M; Operating income SAR 107.6M.

• ▍Revenue SAR 328.2M
• ▍Operating income SAR 107.6M
• ▍Net margin 36.7%

Revenue SAR 346.3M; Operating income SAR 104.6M.

• ▍Revenue SAR 346.3M
• ▍Operating income SAR 104.6M
• ▍Net margin 33.5%

Revenue SAR 359.1M; Operating income SAR 123.6M.

• ▍Revenue SAR 359.1M
• ▍Operating income SAR 123.6M
• ▍Net margin 39.1%

Revenue SAR 353.5M; Operating income SAR 145.7M.

• ▍Revenue SAR 353.5M
• ▍Operating income SAR 145.7M
• ▍Net margin 46.3%

Revenue SAR 1.26B, −12,8% YoY; Operating income −43,0% YoY.

• ▍Revenue SAR 1.26B, −12,8% YoY
• ▍Operating income −43,0% YoY
• ▍Net income −36,4% YoY
• ▍Free cash flow −126,9% YoY
• ▍Net margin 31.4%

Revenue SAR 1.45B, +34,8% YoY; Operating income +72,4% YoY.

• ▍Revenue SAR 1.45B, +34,8% YoY
• ▍Operating income +72,4% YoY
• ▍Net income +59,4% YoY
• ▍Free cash flow +245,3% YoY
• ▍Net margin 43.0%

Revenue SAR 1.07B, −1,6% YoY; Operating income −26,4% YoY.

• ▍Revenue SAR 1.07B, −1,6% YoY
• ▍Operating income −26,4% YoY
• ▍Net income −8,1% YoY
• ▍Free cash flow +157,5% YoY
• ▍Net margin 36.4%

Revenue SAR 1.09B, −6,5% YoY; Operating income −27,3% YoY.

• ▍Revenue SAR 1.09B, −6,5% YoY
• ▍Operating income −27,3% YoY
• ▍Net income −27,8% YoY
• ▍Free cash flow +105,5% YoY
• ▍Net margin 38.9%