Al Hassan Ghazi Ibrahim Shaker Company SJSC

The company maintains a leveraged capital structure with total liabilities of 958.5 million SAR against total equity of 851.9 million SAR, resulting in a debt-to-equity ratio of 0.59. Long-term debt stands at 505.2 million SAR, while cash and equivalents are negligible at 43,000 SAR, creating a net cash position that is negative after subtracting total debt. Liquidity is assessed as medium risk, supported by a current ratio of 1.15, which indicates adequate short-term coverage but limited buffer. Operating cash flow is negative at -124.3 million SAR, contrasting with positive free cash flow of 61.9 million SAR, driven by low capital expenditures of -10.4 million SAR.

Profitability metrics show a return on equity of 9.25% and a return on assets of 4.35%. The company generated a gross profit of 355.8 million SAR on revenue of 1,395.0 million SAR, yielding a gross margin of approximately 25.5%. Operating income was 88.4 million SAR, leading to a net income of 81.7 million SAR, indicating efficient control over non-operating expenses and taxes. Without cohort median data for direct comparison, these returns reflect a moderate profitability profile typical of distribution businesses with thin margins.

Revenue concentration and segment details are not explicitly broken down in the available data, though the classification as a Trading Company & Distributor suggests a reliance on volume and supply chain efficiency. Geographic exposure is not detailed in the provided snapshot, limiting the ability to assess regional risk factors. The business model likely depends on maintaining strong relationships with suppliers and customers to sustain cash flow despite the negative operating cash flow position.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The current revenue base of 1,395.0 million SAR provides a scale reference, but year-over-year trends cannot be established from the single-period snapshot. The stability of the share count, with 66.6 million basic and diluted shares outstanding, suggests no recent equity issuances or buybacks affecting the capital base.

Risk factors include medium liquidity risk and low dilution risk. The key flag of negative net cash after debt subtraction highlights a reliance on external financing or operational cash generation to service debt obligations. The negative operating cash flow of -124.3 million SAR is a significant concern, suggesting that working capital management or receivables collection may be straining cash resources despite positive net income.

Recent events are reflected in analyst estimates, with a mean price target of 17.70 SAR and a median target of 17.70 SAR. The high target is 19.00 SAR and the low is 16.40 SAR, indicating a narrow consensus range. The mean recommendation is 2.50, with one buy and one hold rating, and no strong buy ratings, suggesting a neutral to slightly positive market sentiment.

Net income grew at a 31.4% CAGR over four years, demonstrating strong historical profitability expansion.

Return on equity of 9.25% exceeds the cohort median of 8.14%, indicating superior capital efficiency.

Analysts maintain a buy recommendation with a mean price target of 23.02 SAR, signaling positive sentiment.

Operating income increased 7.5% year-over-year in the latest period, showing improved operational performance.

Capex to revenue ratio is above the cohort median, suggesting lower capital intensity relative to peers.

The company faces high credit risk, posing a significant threat to asset quality and future earnings stability.

Free cash flow declined 21.8% year-over-year, weakening the company's ability to fund operations or dividends.

Revenue contracted 1.5% year-over-year in the latest period, indicating a slowdown in top-line growth.

Cash conversion is in the bottom quartile of the cohort, reflecting poor efficiency in generating cash from profits.

Revenue SAR 402.2M, +0,4% YoY; Operating income −10,8% YoY.

• ▍Revenue SAR 402.2M, +0,4% YoY
• ▍Operating income −10,8% YoY
• ▍Net income −10,8% YoY
• ▍Free cash flow +3,8% YoY
• ▍Net margin 6.0%

Revenue SAR 280.9M, −6,0% YoY; Operating income +32,9% YoY.

• ▍Revenue SAR 280.9M, −6,0% YoY
• ▍Operating income +32,9% YoY
• ▍Net income +10,9% YoY
• ▍Free cash flow +146,5% YoY
• ▍Net margin 6.0%

Revenue SAR 344.9M, −3,8% YoY; Operating income −5,2% YoY.

• ▍Revenue SAR 344.9M, −3,8% YoY
• ▍Operating income −5,2% YoY
• ▍Net income +0,6% YoY
• ▍Free cash flow −2,2% YoY
• ▍Net margin 5.2%

Revenue SAR 368.8M, +6,8% YoY; Operating income +70,7% YoY.

• ▍Revenue SAR 368.8M, +6,8% YoY
• ▍Operating income +70,7% YoY
• ▍Net income +21,0% YoY
• ▍Free cash flow +28,0% YoY
• ▍Net margin 5.4%

Revenue SAR 400.4M; Operating income SAR 25.1M.

• ▍Revenue SAR 400.4M
• ▍Operating income SAR 25.1M
• ▍Net margin 6.8%

Revenue SAR 298.9M; Operating income SAR 16.7M.

• ▍Revenue SAR 298.9M
• ▍Operating income SAR 16.7M
• ▍Net margin 5.1%

Revenue SAR 358.6M; Operating income SAR 22.6M.

• ▍Revenue SAR 358.6M
• ▍Operating income SAR 22.6M
• ▍Net margin 4.9%

Revenue SAR 345.1M; Operating income SAR 11.5M.

• ▍Revenue SAR 345.1M
• ▍Operating income SAR 11.5M
• ▍Net margin 4.8%

Revenue SAR 1.39B, −1,5% YoY; Operating income +7,5% YoY.

• ▍Revenue SAR 1.39B, −1,5% YoY
• ▍Operating income +7,5% YoY
• ▍Net income +0,2% YoY
• ▍Free cash flow −21,8% YoY
• ▍Net margin 5.9%

Revenue SAR 1.42B, +14,5% YoY; Operating income −7,8% YoY.

• ▍Revenue SAR 1.42B, +14,5% YoY
• ▍Operating income −7,8% YoY
• ▍Net income +24,7% YoY
• ▍Free cash flow +8,3% YoY
• ▍Net margin 5.8%

Revenue SAR 1.24B, +19,2% YoY; Operating income +110,5% YoY.

• ▍Revenue SAR 1.24B, +19,2% YoY
• ▍Operating income +110,5% YoY
• ▍Net income +99,3% YoY
• ▍Free cash flow +71,7% YoY
• ▍Net margin 5.3%

Revenue SAR 1.04B, +3,4% YoY; Operating income +15,6% YoY.

• ▍Revenue SAR 1.04B, +3,4% YoY
• ▍Operating income +15,6% YoY
• ▍Net income +19,7% YoY
• ▍Free cash flow −2,1% YoY
• ▍Net margin 3.2%