National Cleaning Company KSCP

The company maintains a debt-to-equity ratio of 1.23, indicating a moderate reliance on debt financing, and a current ratio of 1.0, suggesting limited short-term liquidity buffer. With cash and equivalents of 3.32 million KWD and long-term debt of 35.12 million KWD, the firm's net cash position is negative, raising liquidity concerns. Free cash flow of 1.24 million KWD and operating cash flow of 2.31 million KWD support operational flexibility, but the negative net cash position remains a red flag.

Profitability metrics show a return on equity of 0.89% and return on assets of 0.27%, both below the typical thresholds for industrial services firms. The operating margin of 1.9% (161,980 KWD / 8,532,950 KWD revenue) and net margin of 2.97% (253,500 KWD / 8,532,950 KWD revenue) are modest, indicating limited efficiency in converting revenue to profit. These figures fall below the median for the Business Support Services industry, which typically sees ROE and ROA in the 5-10% range.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of segmentation and geographic exposure increases operational and market risk, as the firm is fully exposed to regional economic conditions and sector-specific volatility.

Revenue growth has been flat, with the most recent actual revenue of 9.86 million KWD compared to the prior period's 8.53 million KWD. Analysts have not provided forward-looking revenue guidance, and the firm's capital expenditure of -592,790 KWD suggests a reduction in investment in physical assets. The absence of a clear growth trajectory and the negative net cash position raise concerns about the company's ability to scale operations or fund expansion.

The risk assessment highlights medium liquidity risk and low dilution risk. The negative net cash position is a key flag, as it suggests the firm may need to raise additional capital or refinance debt in the near term. No dilution sources are currently identified, and the firm's diluted shares outstanding are equal to its basic shares, indicating no near-term pressure from share issuance.

Recent financial filings and transcripts do not disclose material events or strategic shifts. The firm's most recent actual EPS was 0.00 KWD, and revenue was 9.86 million KWD, both in line with the latest reported financials. No significant regulatory or operational developments have been reported in the available data.

Free cash flow surged 93.8% year-over-year, demonstrating strong operational cash generation capabilities despite modest revenue growth.

Cash conversion ratio of 9.1 ranks best-in-class among 363 peers, indicating superior efficiency in turning earnings into cash.

Long-term debt decreased significantly from 51.1 million KWD to 19.5 million KWD over the four-year period, reducing leverage.

Operating income improved by 31.4% year-over-year, signaling a positive trend in core operational profitability and margin expansion.

Revenue maintained a stable 0.3% CAGR over four years, providing a consistent top-line foundation for the business.

Debt-to-equity ratio of 1.23 places the company in the bottom quartile, indicating significantly higher financial risk than peers.

The company faces high credit risk, suggesting potential difficulties in meeting financial obligations or securing favorable financing terms.

Revenue KWD 10.4M, +0,5% YoY; Operating income +65,3% YoY.

• ▍Revenue KWD 10.4M, +0,5% YoY
• ▍Operating income +65,3% YoY
• ▍Net income +332,8% YoY
• ▍Free cash flow +1 574,7% YoY
• ▍Net margin 9.4%

Revenue KWD 11.7M, +24,0% YoY; Operating income +611,0% YoY.

• ▍Revenue KWD 11.7M, +24,0% YoY
• ▍Operating income +611,0% YoY
• ▍Net income +3,5% YoY
• ▍Free cash flow −17,2% YoY
• ▍Net margin 8.8%

Revenue KWD 8.5M, −2,9% YoY; Operating income −47,1% YoY.

• ▍Revenue KWD 8.5M, −2,9% YoY
• ▍Operating income −47,1% YoY
• ▍Net income +71,6% YoY
• ▍Free cash flow +9,1% YoY
• ▍Net margin 5.9%

Revenue KWD 9.4M; Operating income -KWD 173.9k.

• ▍Revenue KWD 9.4M
• ▍Operating income -KWD 173.9k
• ▍Net margin 10.6%

Revenue KWD 8.7M; Operating income KWD 286.8k.

• ▍Revenue KWD 8.7M
• ▍Operating income KWD 286.8k
• ▍Net margin 3.3%

Revenue KWD 38.9M, +4,9% YoY; Operating income +152,8% YoY.

• ▍Revenue KWD 38.9M, +4,9% YoY
• ▍Operating income +152,8% YoY
• ▍Net income +140,8% YoY
• ▍Free cash flow +23,7% YoY
• ▍Net margin 6.9%

Revenue KWD 37.1M, +7,3% YoY; Operating income +400,9% YoY.

• ▍Revenue KWD 37.1M, +7,3% YoY
• ▍Operating income +400,9% YoY
• ▍Net income +146,1% YoY
• ▍Free cash flow +33,2% YoY
• ▍Net margin 3.0%

Revenue KWD 34.5M, −1,0% YoY; Operating income +92,4% YoY.

• ▍Revenue KWD 34.5M, −1,0% YoY
• ▍Operating income +92,4% YoY
• ▍Net income +113,5% YoY
• ▍Free cash flow +1 781,3% YoY
• ▍Net margin 1.3%