Lumi Rental Company SJSC

Lumi Rental Company SJSC maintains a capital structure characterized by significant leverage, with a debt-to-equity ratio of 1.13. The company holds total liabilities of 2,006,424,020 SAR against total equity of 1,407,809,740 SAR. Long-term debt stands at 1,588,359,150 SAR, indicating a heavy reliance on debt financing. Liquidity is constrained, evidenced by a current ratio of 0.4, which suggests potential short-term solvency pressures. Despite this, the company generates positive free cash flow of 610,902,120 SAR, supported by operating cash flow of 164,923,360 SAR and modest capital expenditures of -32,040,720 SAR. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt.

Profitability metrics show a return on equity of 14.07% and a return on assets of 5.8%. The company reported revenue of 1,668,761,860 SAR and net income of 198,085,730 SAR for the latest period. Gross profit was 459,545,690 SAR, resulting in an operating income of 319,701,550 SAR. Without cohort median data for direct comparison, these returns must be evaluated against general industry standards for capital-intensive rental businesses.

Segment and geographic revenue breakdowns are not provided in the available data. The company’s activity is broadly classified as unclassified within the ground transportation industry, limiting specific insights into revenue concentration by product line or region.

Historical growth trajectory data is absent from the input. Consequently, trends in revenue and net income over the past five years or eight quarters cannot be analyzed.

Key risks include medium liquidity risk and low dilution risk. The primary flag is the negative net cash position after accounting for total debt. The current ratio of 0.4 further underscores liquidity constraints.

Recent analyst observations indicate a mean price target of 65.90 SAR and a median target of 70.00 SAR. The mean recommendation is 2.29, with five buy ratings and two hold ratings, but no strong buy ratings. The price target range spans from a low of 42.00 SAR to a high of 77.50 SAR.