Jamjoom Pharmaceuticals Factory Company SJSC

Jamjoom Pharmaceuticals Factory Company SJSC maintains a strong liquidity position, with a current ratio of 5.53, indicating the company can easily cover its short-term liabilities with its short-term assets. The company's liquidity_fpt score suggests a medium liquidity risk, which is consistent with its low long-term debt of SAR 16,433,090 and a total equity of SAR 1,716,767,170. However, the company has a negative net cash position after subtracting total debt, which could pose a liquidity risk if not managed carefully. In terms of profitability, the company demonstrates strong returns, with a return on equity (ROE) of 27.02% and a return on assets (ROA) of 22.67%. These figures are well above the typical thresholds for the pharmaceutical industry, suggesting that the company is effectively utilizing its equity and assets to generate profits. The gross profit margin of 62.57% (calculated as gross profit of SAR 938,805,640 divided by revenue of SAR 1,500,627,460) and an operating margin of 31.64% (calculated as operating income of SAR 474,756,150 divided by revenue) further support the company's strong profitability. The company's revenue is primarily concentrated in Saudi Arabia, with no disclosed segments or geographic breakdown in the provided data. This lack of diversification could expose the company to regional economic risks, particularly in the healthcare sector, which is sensitive to government policies and healthcare spending trends. Looking ahead, the company is expected to maintain a stable growth trajectory, with no significant revenue growth or decline projected in the current or next fiscal year. The company's capital expenditure of SAR -66,448,020 indicates a reduction in investment in physical assets, which could be a strategic move to preserve cash or a sign of reduced expansion plans. The company's free cash flow of SAR 199,238,360 provides flexibility for dividends, debt repayment, or strategic investments. The company's risk profile is characterized by a low dilution risk, with no significant dilution sources identified in the provided data. However, the negative net cash position after subtracting total debt is a key flag that could impact the company's liquidity if not addressed. The company's debt-to-equity ratio of 0.01 suggests a conservative capital structure, with minimal reliance on debt financing. Recent events and disclosures do not indicate any material changes in the company's operations or financial position. The company's operating cash flow of SAR 406,288,110 and free cash flow of SAR 199,238,360 suggest strong cash generation capabilities. Analysts have provided a mean price target of SAR 164.81, with a median price target of SAR 163.63, indicating a generally positive outlook on the stock.