Kafr El Zayat Pesticides and Chemicals Co SAE

Kafr El Zayat Pesticides and Chemicals Co SAE maintains a debt-to-equity ratio of 1.2, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium risk, with a current ratio of 1.31, suggesting it can cover short-term obligations but with limited buffer. Despite holding 144.4 million EGP in cash and equivalents, the firm's long-term debt of 763.4 million EGP exceeds its cash reserves, resulting in a negative net cash position.

The company's profitability is reflected in a return on equity (ROE) of 20.16% and a return on assets (ROA) of 7.32%, both of which are strong indicators of efficient capital use and asset management. These figures suggest the company is generating solid returns relative to its equity and total assets, outperforming the typical expectations for the Agricultural Chemicals industry.

The company's revenue is concentrated in a single business segment, as disclosed in its financial reporting, with no material geographic diversification beyond its primary market. This lack of diversification may expose the company to regional economic or regulatory risks, particularly in the volatile agricultural chemicals sector.

Looking ahead, the company is projected to see a revenue increase from 684.16 million EGP to 791.17 million EGP, representing a year-over-year growth of 15.7%. This growth is supported by a stable capital expenditure of -27.97 million EGP, indicating ongoing investment in operational capacity. However, the company's operating cash flow remains negative at -200.50 million EGP, signaling potential challenges in generating sufficient cash from operations to support its debt obligations.

The company's risk profile is marked by a medium liquidity risk and a low dilution risk. The negative net cash position is a key flag, as it suggests the company may need to rely on external financing to meet long-term obligations. No dilution sources are currently identified, and the firm's shares outstanding remain unchanged between basic and diluted shares, indicating no imminent pressure from equity dilution.

Recent financial filings and disclosures show no material changes in the company's operations or strategic direction. The firm continues to report consistent revenue and profitability, with no significant events disclosed in the latest filings that would alter its current trajectory.

Revenue EGP 529.7M, −51,1% YoY; Operating income −120,4% YoY.

• ▍Revenue EGP 529.7M, −51,1% YoY
• ▍Operating income −120,4% YoY
• ▍Net income −186,4% YoY
• ▍Free cash flow −380,1% YoY
• ▍Net margin -13.0%

Revenue EGP 518.4M, −46,6% YoY; Operating income −76,7% YoY.

• ▍Revenue EGP 518.4M, −46,6% YoY
• ▍Operating income −76,7% YoY
• ▍Net income −168,9% YoY
• ▍Free cash flow −414,6% YoY
• ▍Net margin -7.7%

Revenue EGP 757.8M, +4,6% YoY; Operating income −23,2% YoY.

• ▍Revenue EGP 757.8M, +4,6% YoY
• ▍Operating income −23,2% YoY
• ▍Net income −59,9% YoY
• ▍Free cash flow −113,4% YoY
• ▍Net margin 5.3%

Revenue EGP 1.15B, +45,3% YoY; Operating income +36,0% YoY.

• ▍Revenue EGP 1.15B, +45,3% YoY
• ▍Operating income +36,0% YoY
• ▍Net income −12,8% YoY
• ▍Free cash flow +1 425,8% YoY
• ▍Net margin 9.7%

Revenue EGP 1.08B; Operating income EGP 43.3M.

• ▍Revenue EGP 1.08B
• ▍Operating income EGP 43.3M
• ▍Net margin -2.2%

Revenue EGP 970.8M; Operating income EGP 168.2M.

• ▍Revenue EGP 970.8M
• ▍Operating income EGP 168.2M
• ▍Net margin 6.0%

Revenue EGP 724.5M; Operating income EGP 216.6M.

• ▍Revenue EGP 724.5M
• ▍Operating income EGP 216.6M
• ▍Net margin 14.0%

Revenue EGP 2.96B, −17,2% YoY; Operating income −27,7% YoY.

• ▍Revenue EGP 2.96B, −17,2% YoY
• ▍Operating income −27,7% YoY
• ▍Net income −83,4% YoY
• ▍Free cash flow −327,8% YoY
• ▍Net margin 1.5%

Revenue EGP 3.57B, +55,0% YoY; Operating income +50,5% YoY.

• ▍Revenue EGP 3.57B, +55,0% YoY
• ▍Operating income +50,5% YoY
• ▍Net income +38,5% YoY
• ▍Free cash flow +30,8% YoY
• ▍Net margin 7.4%

Revenue EGP 2.30B, +47,4% YoY; Operating income +114,6% YoY.

• ▍Revenue EGP 2.30B, +47,4% YoY
• ▍Operating income +114,6% YoY
• ▍Net income +49,2% YoY
• ▍Free cash flow +296,5% YoY
• ▍Net margin 8.2%