Northern Region Cement Company SJSC

Northern Region Cement Company SJSC has a debt-to-equity ratio of 0.47, indicating a relatively conservative capital structure. However, the company's current ratio of 0.91 suggests potential liquidity constraints, as current assets fall short of current liabilities. Free cash flow is negative at -66,029,670 SAR, and capital expenditures of -130,694,400 SAR reflect ongoing investment in operations. Profitability metrics show a return on equity of 2.48% and a return on assets of 1.51%, both below the industry median for Construction Materials firms. Operating income of 122,136,670 SAR and net income of 56,062,020 SAR indicate moderate profitability, but gross profit of 210,001,420 SAR suggests room for improvement in cost management. The company operates as a single segment, with all revenue derived from cement and related products. Geographic exposure is concentrated in Saudi Arabia, with no disclosed international revenue streams. This concentration increases vulnerability to regional economic shifts. Revenue for the latest period was 683,517,780 SAR, with no segment-specific growth data available. Analysts have assigned a mean price target of 6.20 SAR, with all recommendations neutral at 5.00 (strong sell). The company's free cash flow and capital expenditures suggest ongoing investment, but no significant revenue growth is projected. Risk factors include medium liquidity risk due to a current ratio below 1 and negative free cash flow. Dilution risk is low, with no near-term pressure from share issuance. However, the company's net cash position is negative after subtracting total debt, signaling potential refinancing needs. Recent filings and transcripts have not disclosed material events or strategic shifts. The company's operations remain stable, with no significant changes in production capacity or market share reported in the latest financial data.