Advanced Petrochemical Co SJSC

The company’s capital structure is highly leveraged, with a debt-to-equity ratio of 2.37, indicating significant reliance on long-term debt to fund operations. Despite holding 150 million SAR in cash and equivalents, the firm’s liquidity is constrained by a negative free cash flow of -480.6 million SAR and a net cash position that is negative after subtracting total debt. The current ratio of 1.39 suggests moderate short-term liquidity, but the firm’s ability to meet long-term obligations remains a concern.

Profitability metrics are weak relative to the Commodity Chemicals industry. Return on equity (ROE) of 1.31% and return on assets (ROA) of 0.35% fall below the typical thresholds for capital-intensive chemical producers, which often require ROE above 10% and ROA above 5% to justify reinvestment. Operating income of 75.1 million SAR and net income of 41.6 million SAR reflect thin margins, with a gross profit margin of 18.9% (122.9 million SAR / 649.1 million SAR revenue) that is below the industry median for commodity chemical producers.

Geographically, the firm is concentrated in Saudi Arabia, with no disclosed international revenue segments. Segment-wise, the company operates as a single business unit, which increases exposure to regional economic and regulatory shifts. The lack of diversification amplifies the impact of domestic demand fluctuations and policy changes on revenue.

Growth prospects are muted, with no disclosed revenue growth in the latest period. Analysts project a mean price target of 33.19 SAR, but the firm’s capital expenditure of -1.26 billion SAR indicates a drawdown rather than investment in future capacity. The absence of a clear growth strategy, combined with weak returns and high leverage, suggests limited upside in the near term.

The firm faces moderate liquidity risk and low dilution risk. While the risk assessment flags negative net cash as a concern, the dilution potential is low due to no recent share issuance and no disclosed ATM or shelf registration. However, the firm’s high debt load and negative free cash flow could necessitate future financing, which may involve equity dilution or higher interest costs.

Recent filings and transcripts do not disclose material events, but the firm’s financial snapshot highlights a significant drawdown in capital expenditures and a negative free cash flow, which may signal operational or strategic challenges. Analysts have issued a mixed outlook, with three strong-buy, three buy, and three hold ratings, reflecting uncertainty about the firm’s ability to improve returns or reduce leverage.

Analysts project 25.2% upside to a mean price target of 33.19 SAR, reflecting strong buy consensus.

Revenue surged 59.7% year-over-year to 3.5 billion SAR in FY2026, demonstrating strong top-line growth.

Cash conversion of 1.98 is above the cohort median of 1.1, suggesting efficient cash generation.

Debt-to-equity ratio of 2.37 is in the bottom quartile, indicating significantly higher leverage than peers.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations.

Free cash flow remains deeply negative at -1.06 billion SAR in FY2026, draining liquidity.

Return on equity of 1.3% is well below the 3.6% cohort median, showing poor capital efficiency.

Long-term debt increased to 9.4 billion SAR in FY2026, exacerbating financial leverage concerns.

Revenue SAR 1.08B, +75,7% YoY; Operating income +68,7% YoY.

• ▍Revenue SAR 1.08B, +75,7% YoY
• ▍Operating income +68,7% YoY
• ▍Net income −58,3% YoY
• ▍Free cash flow +108,6% YoY
• ▍Net margin 2.8%

Revenue SAR 1.17B, +102,2% YoY; Operating income +154,1% YoY.

• ▍Revenue SAR 1.17B, +102,2% YoY
• ▍Operating income +154,1% YoY
• ▍Net income +100,4% YoY
• ▍Free cash flow +88,5% YoY
• ▍Net margin 0.1%

Revenue SAR 1.02B, +58,3% YoY; Operating income +139,4% YoY.

• ▍Revenue SAR 1.02B, +58,3% YoY
• ▍Operating income +139,4% YoY
• ▍Net income +57,8% YoY
• ▍Free cash flow −18,2% YoY
• ▍Net margin 7.1%

Revenue SAR 698.4M, +7,6% YoY; Operating income +23,1% YoY.

• ▍Revenue SAR 698.4M, +7,6% YoY
• ▍Operating income +23,1% YoY
• ▍Net income +96,4% YoY
• ▍Free cash flow +20,1% YoY
• ▍Net margin 11.7%

Revenue SAR 614.1M; Operating income SAR 73.3M.

• ▍Revenue SAR 614.1M
• ▍Operating income SAR 73.3M
• ▍Net margin 11.7%

Revenue SAR 579.4M; Operating income -SAR 236.2M.

• ▍Revenue SAR 579.4M
• ▍Operating income -SAR 236.2M
• ▍Net margin -49.7%

Revenue SAR 643.0M; Operating income SAR 75.9M.

• ▍Revenue SAR 643.0M
• ▍Operating income SAR 75.9M
• ▍Net margin 7.1%

Revenue SAR 649.1M; Operating income SAR 75.1M.

• ▍Revenue SAR 649.1M
• ▍Operating income SAR 75.1M
• ▍Net margin 6.4%

Revenue SAR 3.50B, +59,7% YoY; Operating income +529,5% YoY.

• ▍Revenue SAR 3.50B, +59,7% YoY
• ▍Operating income +529,5% YoY
• ▍Net income +187,3% YoY
• ▍Free cash flow +53,9% YoY
• ▍Net margin 6.5%

Revenue SAR 2.19B, −7,6% YoY; Operating income −139,3% YoY.

• ▍Revenue SAR 2.19B, −7,6% YoY
• ▍Operating income −139,3% YoY
• ▍Net income −251,5% YoY
• ▍Free cash flow +26,3% YoY
• ▍Net margin -11.8%

Revenue SAR 2.37B, −19,5% YoY; Operating income −29,4% YoY.

• ▍Revenue SAR 2.37B, −19,5% YoY
• ▍Operating income −29,4% YoY
• ▍Net income −41,9% YoY
• ▍Free cash flow −30,2% YoY
• ▍Net margin 7.2%

Revenue SAR 2.95B, −5,2% YoY; Operating income −53,9% YoY.

• ▍Revenue SAR 2.95B, −5,2% YoY
• ▍Operating income −53,9% YoY
• ▍Net income −63,9% YoY
• ▍Free cash flow −146,5% YoY
• ▍Net margin 10.0%