Saudi Basic Industries Corporation SJSC

Saudi Basic Industries Corporation maintains a conservative capital structure with a debt-to-equity ratio of 0.29 and a current ratio of 1.8, indicating adequate short-term liquidity coverage. The balance sheet reflects total assets of 244.3 billion SAR against total liabilities of 115.6 billion SAR, resulting in total equity of 128.7 billion SAR. Long-term debt stands at 37.1 billion SAR, while cash and equivalents are minimal at 0.6 billion SAR, leading to a negative net cash position after subtracting total debt. The market capitalization is 167.3 billion SAR, trading at a price-to-book ratio of 1.3 and an EV/Revenue multiple of 1.88.

Profitability metrics are severely impaired, with a return on equity of -18.56% and a return on assets of -9.78%, driven by a net income loss of 25.9 billion SAR against revenue of 116.5 billion SAR. The gross profit margin is approximately 18.7%, while operating income is a modest 2.9 billion SAR, suggesting significant non-operating expenses or impairments contributing to the bottom-line loss. The EV/EBITDA multiple is elevated at 40.0, reflecting the depressed earnings base. These returns are well below typical industry medians for stable chemical manufacturers, indicating a cyclical trough or structural margin compression.

Revenue concentration and segment details are not explicitly provided in the available data, preventing a granular analysis of product mix or geographic exposure. The company operates globally as a major chemical producer, but specific revenue breakdowns by segment or region are absent from the current snapshot. Without this data, the degree of reliance on specific commodity cycles or regional markets cannot be quantified, though the classification as Commodity & Specialty Chemicals implies exposure to global feedstock and product pricing volatility.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot shows a significant disconnect between top-line revenue of 116.5 billion SAR and the substantial net loss, suggesting that recent performance has deteriorated sharply compared to prior periods. Operating cash flow remains positive at 16.0 billion SAR, providing a buffer against the net loss, but free cash flow is negative at -6.0 billion SAR due to capital expenditures of 8.8 billion SAR. This indicates that the company is investing heavily despite current profitability challenges.

Risk assessment highlights medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, which constrains financial flexibility despite the strong current ratio. The low dilution risk is supported by the fact that basic and diluted shares outstanding are identical at 3.0 billion shares, indicating no immediate options or convertible securities impacting share count. The primary risk stems from the volatility of chemical margins and the company's ability to generate sufficient cash flow to service debt and fund capex during periods of negative net income.

Recent observations from investor relations data show a mean analyst price target of 60.71 SAR, implying upside from the current market price of 55.75 SAR. The mean recommendation is 2.85, with 11 hold ratings and 2 buy ratings, and no strong buy ratings, reflecting cautious sentiment among analysts. The high price target of 64.50 SAR and low of 56.00 SAR suggest a narrow consensus range, indicating limited near-term catalysts for significant re-rating. No specific filing, news, or transcript observations are provided to detail recent corporate actions or strategic shifts.

Analysts project 8.9% upside to a mean price target of 60.71 SAR, suggesting undervaluation relative to current market price.

The company maintains a debt-to-equity ratio of 0.29, which is below the cohort median of 0.38, indicating conservative leverage.

Dilution risk is assessed as low, providing reassurance to existing shareholders regarding potential equity erosion from new issuances.

The company faces high credit risk, raising concerns about its ability to meet financial obligations amidst deteriorating performance.

Revenue SAR 26.15B, −24,4% YoY; Operating income +287,0% YoY.

• ▍Revenue SAR 26.15B, −24,4% YoY
• ▍Operating income +287,0% YoY
• ▍Net income +167,4% YoY
• ▍Free cash flow +60,1% YoY
• ▍Net margin 3.1%

Revenue SAR 12.03B, −3,4% YoY; Operating income +71,8% YoY.

• ▍Revenue SAR 12.03B, −3,4% YoY
• ▍Operating income +71,8% YoY
• ▍Net income −1 012,0% YoY
• ▍Free cash flow +3 819,7% YoY
• ▍Net margin -175.1%

Revenue SAR 34.33B, −6,9% YoY; Operating income −32,9% YoY.

• ▍Revenue SAR 34.33B, −6,9% YoY
• ▍Operating income −32,9% YoY
• ▍Net income −56,6% YoY
• ▍Free cash flow +7,5% YoY
• ▍Net margin 1.3%

Revenue SAR 35.57B, −0,4% YoY; Operating income −189,7% YoY.

• ▍Revenue SAR 35.57B, −0,4% YoY
• ▍Operating income −189,7% YoY
• ▍Net income −286,2% YoY
• ▍Free cash flow −170,1% YoY
• ▍Net margin -11.4%

Revenue SAR 34.59B; Operating income -SAR 773.4M.

• ▍Revenue SAR 34.59B
• ▍Operating income -SAR 773.4M
• ▍Net margin -3.5%

Revenue SAR 12.45B; Operating income SAR 2.25B.

• ▍Revenue SAR 12.45B
• ▍Operating income SAR 2.25B
• ▍Net margin -15.2%

Revenue SAR 36.88B; Operating income SAR 2.48B.

• ▍Revenue SAR 36.88B
• ▍Operating income SAR 2.48B
• ▍Net margin 2.7%

Revenue SAR 35.72B; Operating income SAR 2.10B.

• ▍Revenue SAR 35.72B
• ▍Operating income SAR 2.10B
• ▍Net margin 6.1%

Revenue SAR 116.53B, −1,0% YoY; Operating income −64,2% YoY.

• ▍Revenue SAR 116.53B, −1,0% YoY
• ▍Operating income −64,2% YoY
• ▍Net income −1 784,2% YoY
• ▍Free cash flow −35 721,0% YoY
• ▍Net margin -22.2%

Revenue SAR 117.74B, −16,8% YoY; Operating income +116,1% YoY.

• ▍Revenue SAR 117.74B, −16,8% YoY
• ▍Operating income +116,1% YoY
• ▍Net income +155,5% YoY
• ▍Free cash flow +99,7% YoY
• ▍Net margin 1.3%

Revenue SAR 141.54B, −22,7% YoY; Operating income −83,8% YoY.

• ▍Revenue SAR 141.54B, −22,7% YoY
• ▍Operating income −83,8% YoY
• ▍Net income −116,8% YoY
• ▍Free cash flow −139,1% YoY
• ▍Net margin -2.0%

Revenue SAR 183.08B, +4,7% YoY; Operating income −31,8% YoY.

• ▍Revenue SAR 183.08B, +4,7% YoY
• ▍Operating income −31,8% YoY
• ▍Net income −28,3% YoY
• ▍Free cash flow −49,0% YoY
• ▍Net margin 9.0%