Galfar Engineering and Contracting SAOG

Galfar Engineering and Contracting SAOG maintains a capital structure with a debt-to-equity ratio of 3.34, indicating a high reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.96, suggesting limited short-term liquidity to cover immediate liabilities. Free cash flow is negative at -8.54 million OMR, and capital expenditures are -18.39 million OMR, indicating ongoing investment in long-term assets.

Profitability metrics show a return on equity of 0.82% and a return on assets of 0.06%, both of which are below the typical thresholds for construction and engineering firms. The company's operating income of 1.54 million OMR and net income of 0.19 million OMR suggest modest profitability relative to its asset base.

The company's revenue is concentrated in the construction and engineering services segment, with no disclosed geographic diversification. This concentration increases exposure to regional economic fluctuations and regulatory changes. No specific geographic breakdown is provided in the available data.

The company's growth trajectory is not clearly defined in the available data. No specific revenue growth or decline is reported for the current or next fiscal year. However, the capital expenditures and operating cash flow suggest ongoing investment in long-term projects.

The company faces a medium liquidity risk due to its current ratio of 0.96 and a negative free cash flow. The risk assessment also notes that net cash is negative after subtracting total debt, indicating potential challenges in meeting short-term obligations. Dilution risk is assessed as low, with no significant dilution potential reported in the data.

Recent events and filings are not detailed in the available data. The company's financial snapshot does not include specific recent events or transcripts from investor calls or earnings reports.

Operating income surged 762.5% year-over-year to OMR 11.9 million, signaling a dramatic improvement in core profitability.

Net income jumped 234.8% to OMR 5.2 million, demonstrating a strong recovery from the previous fiscal year's losses.

Revenue grew at an 11.0% compound annual growth rate over four years, indicating consistent top-line expansion.

The single analyst consensus suggests a 27.1% upside to a target price of OMR 0.216, rating it a strong buy.

Cash conversion of 86.29% ranks as best-in-class within the Construction & Engineering cohort of 828 peers.

Debt-to-equity ratio stands at 3.34, placing it in the bottom quartile and indicating excessive financial leverage.

Free cash flow remains negative at OMR -9.95 million, reflecting significant cash outflows despite improved earnings.

Net margin of 0.27% falls into the bottom quartile compared to the 3.81% median of the construction cohort.

Return on equity of 0.82% is well below the 4.75% cohort median, suggesting inefficient use of shareholder capital.

The company faces high credit risk and medium liquidity risk, posing potential challenges for financial stability.

Revenue OMR 70.8M, +12,3% YoY; Net income +330,4% YoY.

• ▍Revenue OMR 70.8M, +12,3% YoY
• ▍Net income +330,4% YoY
• ▍Net margin 2.2%

Revenue OMR 79.4M; Operating income -OMR 690.0k.

• ▍Revenue OMR 79.4M
• ▍Operating income -OMR 690.0k
• ▍Net margin -2.5%

Revenue OMR 71.4M; Operating income -OMR 903.0k.

• ▍Revenue OMR 71.4M
• ▍Operating income -OMR 903.0k
• ▍Net margin -3.2%

Revenue OMR 69.4M; Operating income OMR 1.5M.

• ▍Revenue OMR 69.4M
• ▍Operating income OMR 1.5M
• ▍Net margin 0.3%

Revenue OMR 286.0M, +14,5% YoY; Operating income −64,4% YoY.

• ▍Revenue OMR 286.0M, +14,5% YoY
• ▍Operating income −64,4% YoY
• ▍Net income −2 395,8% YoY
• ▍Free cash flow −113,8% YoY
• ▍Net margin -1.3%

Revenue OMR 249.9M, +40,7% YoY; Operating income +16,7% YoY.

• ▍Revenue OMR 249.9M, +40,7% YoY
• ▍Operating income +16,7% YoY
• ▍Net income −87,1% YoY
• ▍Free cash flow −443,0% YoY
• ▍Net margin 0.1%

Revenue OMR 177.6M, −5,5% YoY; Operating income −35,6% YoY.

• ▍Revenue OMR 177.6M, −5,5% YoY
• ▍Operating income −35,6% YoY
• ▍Net income +1,9% YoY
• ▍Free cash flow −74,2% YoY
• ▍Net margin 0.7%

Revenue OMR 187.9M; Operating income OMR 5.2M.

• ▍Revenue OMR 187.9M
• ▍Operating income OMR 5.2M
• ▍Net margin 0.7%