Al Hassan Ghazi Ibrahim Shaker Company SJSC

Capital Structure and Liquidity Shaker Group's liquidity position is characterized by a current ratio of 1.15, indicating a modest ability to cover short-term obligations with current assets. The company's cash and equivalents amount to SAR 43,000, which is significantly lower than its long-term debt of SAR 505.24 million, resulting in a negative net cash position. The debt-to-equity ratio of 0.59 suggests a moderate reliance on debt financing, with total liabilities of SAR 958.51 million against total equity of SAR 851.85 million. ### Profitability and Returns The company's profitability is reflected in a return on equity (ROE) of 9.6% and a return on assets (ROA) of 4.52%. These figures are below the industry median for ROE and ROA in the Electrical Components & Equipment sector, indicating that Shaker Group is underperforming relative to its peers in terms of capital efficiency and asset utilization. The operating margin of 6.34% (calculated as operating income of SAR 88.38 million divided by revenue of SAR 1.395 billion) is also below the sector median, suggesting room for improvement in cost control and pricing power. ### Segments and Geographic Exposure Shaker Group's operations are concentrated in Saudi Arabia, with no disclosed international revenue streams. The company's business is divided into five subsidiaries, including a joint venture with LG Electronics for air-conditioner manufacturing. The lack of geographic diversification increases exposure to local economic and regulatory risks, particularly in the industrial goods sector. ### Growth Trajectory The company's revenue for the latest period is SAR 1.395 billion, with no disclosed year-over-year growth rate. Analysts have assigned a mean price target of SAR 23.02, with a median of SAR 23.02 and a high of SAR 23.83. The mean recommendation score of 2.50 suggests a cautious outlook, with one "buy" and one "hold" rating. The absence of a strong buy recommendation and the low number of positive ratings indicate limited confidence in near-term growth potential. ### Risk Factors The company faces medium liquidity risk due to its negative net cash position and a current ratio of 1.15. The risk of dilution is assessed as low, with no recent or disclosed share issuance activity. However, the operating cash flow of SAR -124.34 million raises concerns about the company's ability to fund operations without external financing. The capital expenditure of SAR -10.43 million suggests minimal investment in growth, which may limit long-term value creation. ### Recent Events No recent filings or transcripts have been disclosed in the provided data. The company's financial performance and risk profile are based on the latest available financial snapshot and analyst estimates.