Middle East Specialized Cables Company SJSC

MESC maintains a conservative capital structure with a debt-to-equity ratio of 0.34, below the industry median of 0.50, and a current ratio of 1.73, indicating adequate short-term liquidity. Free cash flow of SAR 58.8 million in the latest period supports operational flexibility, though operating cash flow of SAR 5.05 million suggests limited excess liquidity. Profitability metrics show a return on equity (ROE) of 18.87% and return on assets (ROA) of 8.61%, outperforming the industry median ROE of 12.5% and ROA of 6.2%. Gross margin of 16.0% (SAR 237.5 million gross profit on SAR 1.48 billion revenue) aligns with industry norms, but operating margin of 9.05% (SAR 134.2 million) reflects competitive cost pressures. Revenue is concentrated in Saudi Arabia, with disclosed operations in Ras Al-Khaimah and a Jordanian subsidiary, though segment-specific revenue breakdowns are not provided in the latest filings. The company operates through two branches and a subsidiary, with no material diversification across geographic or product lines. Outlook for FY2024 shows revenue growth of 4.2% year-over-year, driven by infrastructure demand in the Gulf, while FY2025 projects a 3.8% increase, reflecting stable but moderate expansion. Capital expenditure of SAR 24.3 million in the latest period indicates maintenance spending rather than aggressive growth. Risk factors include medium liquidity risk due to negative net cash (SAR -129.9 million) and a long-term debt balance of SAR 183.7 million, though dilution risk remains low with no change in shares outstanding between basic and diluted counts. No recent equity issuance or ATM programs are disclosed in the latest filings. Recent events include the 2023 annual report filing, which highlights ongoing investments in production capacity and compliance with regional infrastructure standards. No material litigation or regulatory actions are disclosed in the latest period.