Al Jouf Cement Company SJSC

### Capital Structure and Liquidity Al Jouf Cement Company SJSC has a debt-to-equity ratio of 0.5, indicating a moderate reliance on debt financing. However, the company's liquidity position is assessed as medium, with a current ratio of 0.97, suggesting limited short-term liquidity cushion. The firm reported negative net cash of SAR -6,853,800 in operating cash flow, yet it generated SAR 5,730,660 in free cash flow, reflecting uneven cash flow performance.

### Profitability and Returns The company's profitability is weak, with a net loss of SAR -5,794,570 and a negative return on equity of -0.47%. Return on assets is also negative at -0.28%, indicating underperformance relative to asset utilization. These metrics fall below the typical expectations for the Construction Materials industry, where positive returns and stable margins are key indicators of competitive strength.

### Segments and Geographic Exposure The company operates as a single business segment focused on cement production and distribution within Saudi Arabia. Revenue is entirely concentrated in the domestic market, exposing the firm to regional economic fluctuations and regulatory changes in the Kingdom.

### Growth Trajectory The company's growth trajectory is unclear, as no forward-looking revenue guidance is provided in the input data. Historical revenue of SAR 63,799,060 suggests a stable but modest scale of operations. Analysts have not issued any strong buy or buy recommendations, with a mean recommendation of 5.00 (strong sell) and a uniform price target of SAR 5.30.

### Risk Factors The company faces medium liquidity risk due to its current ratio of 0.97 and negative net cash position. Dilution risk is assessed as low, with no near-term pressure from share issuance or convertible instruments. The risk assessment does not identify any material regulatory or geopolitical exposures, but the firm's reliance on a single market and product line increases vulnerability to local demand shifts.

### Recent Events No recent filings, transcripts, or material events are disclosed in the input data to suggest operational or strategic changes in the near term.

The single analyst consensus price target of 5.3 SAR implies a modest 3.7% upside from the current market price.

Debt-to-equity ratio of 0.5 is below the 0.25 cohort median, suggesting a relatively conservative leverage position compared to industry peers.

The company carries a high credit risk flag, indicating significant concerns regarding its ability to meet financial obligations.

Revenue declined 4.8% year-over-year to 244.3 million SAR in fiscal 2026, demonstrating a contraction in top-line growth.

Revenue SAR 54.5M, −27,2% YoY; Operating income −130,8% YoY.

• ▍Revenue SAR 54.5M, −27,2% YoY
• ▍Operating income −130,8% YoY
• ▍Net income −350,1% YoY
• ▍Free cash flow −190,9% YoY
• ▍Net margin -46.0%

Revenue SAR 74.9M; Operating income SAR 31.2M.

• ▍Revenue SAR 74.9M
• ▍Operating income SAR 31.2M
• ▍Net margin 13.4%

Revenue SAR 59.8M; Operating income SAR 3.7M.

• ▍Revenue SAR 59.8M
• ▍Operating income SAR 3.7M
• ▍Net margin -16.9%

Revenue SAR 63.8M; Operating income SAR 4.5M.

• ▍Revenue SAR 63.8M
• ▍Operating income SAR 4.5M
• ▍Net margin -9.1%

Revenue SAR 244.3M, −4,8% YoY; Net income −644,9% YoY.

• ▍Revenue SAR 244.3M, −4,8% YoY
• ▍Net income −644,9% YoY
• ▍Net margin -84.5%

Revenue SAR 256.5M, −4,8% YoY; Operating income −128,4% YoY.

• ▍Revenue SAR 256.5M, −4,8% YoY
• ▍Operating income −128,4% YoY
• ▍Net income −173,6% YoY
• ▍Free cash flow −68,8% YoY
• ▍Net margin -10.8%

Revenue SAR 269.3M, +6,9% YoY; Operating income −17,9% YoY.

• ▍Revenue SAR 269.3M, +6,9% YoY
• ▍Operating income −17,9% YoY
• ▍Net income +22,0% YoY
• ▍Free cash flow −28,9% YoY
• ▍Net margin 14.0%

Revenue SAR 251.9M, +11,2% YoY; Operating income +1 062,7% YoY.

• ▍Revenue SAR 251.9M, +11,2% YoY
• ▍Operating income +1 062,7% YoY
• ▍Net income +133,3% YoY
• ▍Free cash flow +191,2% YoY
• ▍Net margin 12.3%

Revenue SAR 226.5M; Operating income -SAR 6.4M.

• ▍Revenue SAR 226.5M
• ▍Operating income -SAR 6.4M
• ▍Net margin -40.9%