Al-Babtain Power and Telecommunication Company SJSC

The company maintains a debt-to-equity ratio of 1.32, indicating a moderate reliance on debt financing. Its liquidity position is characterized as medium, with a current ratio of 1.59, suggesting it can cover short-term obligations but with limited surplus. Free cash flow stands at 62,063,890 SAR, which is lower than operating cash flow of 154,302,320 SAR, reflecting capital expenditures of -5,349,050 SAR. The company's return on equity is 5.54%, and return on assets is 1.95%, both below the typical thresholds for high-performing construction and engineering firms.

Profitability metrics show a gross profit of 113,485,330 SAR and operating income of 84,193,000 SAR, translating to a net income of 54,322,370 SAR. These figures suggest a relatively narrow margin structure, with a net profit margin of approximately 8.36% (54,322,370 / 650,102,570). The company's return on equity and return on assets are below the median for the Construction & Engineering industry, indicating a less efficient use of equity and assets compared to peers.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the provided data. This lack of diversification may expose the company to regional economic fluctuations and regulatory changes. No specific geographic breakdown is available, but the absence of international revenue reporting suggests a domestic focus.

The company's growth trajectory is uncertain, with no specific revenue growth projections provided in the input data. Analysts have assigned a mean recommendation of 4.00, indicating a "hold" or "sell" outlook, with one analyst recommending a sell. The last actual EPS of 7.08 SAR is higher than the mean EPS estimate of 5.66 SAR, suggesting potential overestimation of future earnings.

The company faces a medium liquidity risk, with a current ratio of 1.59 and a negative net cash position after subtracting total debt. Dilution risk is assessed as low, with no near-term pressure from share issuance or convertible instruments. No specific dilution sources are disclosed, but the absence of dilution risk suggests a stable capital structure.

Recent events include a single analyst sell recommendation, with no strong buy or buy ratings. The company's financial performance has outperformed analyst EPS estimates, but the lack of upward revision in analyst ratings suggests a cautious outlook. No recent filings or transcripts are provided in the input data to further contextualize these developments.

Operating and net margins exceed the 75th percentile of the Construction & Engineering cohort, indicating superior profitability.

Free cash flow surged to SAR 200.6 million in FY2026, reflecting strong cash generation capabilities.

Long-term debt decreased consistently from SAR 1.38 billion in FY2023 to SAR 946.7 million in FY2026.

Cash conversion ratio of 2.84 significantly outperforms the cohort median of 0.66, demonstrating efficient cash management.

Debt-to-equity ratio of 1.32 places the company in the bottom quartile of its cohort, signaling high leverage risk.

The company carries a high credit risk flag, suggesting potential difficulties in meeting financial obligations.

Analyst consensus recommendation is 'sell' with a market price of SAR 64.8, indicating negative market sentiment.

Medium liquidity risk flag suggests potential challenges in meeting short-term financial obligations.

Revenue SAR 2.86B, +1,6% YoY; Operating income +58,1% YoY.

• ▍Revenue SAR 2.86B, +1,6% YoY
• ▍Operating income +58,1% YoY
• ▍Net income +70,5% YoY
• ▍Free cash flow +2,8% YoY
• ▍Net margin 15.9%

Revenue SAR 2.81B, +12,9% YoY; Operating income +30,5% YoY.

• ▍Revenue SAR 2.81B, +12,9% YoY
• ▍Operating income +30,5% YoY
• ▍Net income +87,8% YoY
• ▍Free cash flow +73,8% YoY
• ▍Net margin 9.4%

Revenue SAR 2.49B, +13,4% YoY; Operating income +63,8% YoY.

• ▍Revenue SAR 2.49B, +13,4% YoY
• ▍Operating income +63,8% YoY
• ▍Net income +168,8% YoY
• ▍Free cash flow +373,0% YoY
• ▍Net margin 5.7%

Revenue SAR 2.20B, +46,3% YoY; Operating income +91,7% YoY.

• ▍Revenue SAR 2.20B, +46,3% YoY
• ▍Operating income +91,7% YoY
• ▍Net income +3,1% YoY
• ▍Free cash flow +55,8% YoY
• ▍Net margin 2.4%