Yanbu Cement Company SJSC

Yanbu Cement maintains a conservative capital structure with a debt-to-equity ratio of 0.06, indicating minimal leverage relative to its equity base of 2.51 billion SAR. The company holds a current ratio of 2.61, suggesting adequate short-term liquidity to cover immediate obligations. However, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, implying that while the balance sheet is not heavily leveraged, cash reserves may be tight relative to total liabilities. Operating cash flow stands at 388 million SAR, significantly higher than free cash flow of 51 million SAR, driven by capital expenditures of 28.7 million SAR.

Profitability metrics show a return on equity of 4.46% and a return on assets of 3.68%, which are modest returns for a capital-intensive industry. The company generated a gross profit of 283 million SAR on revenue of 1.08 billion SAR, resulting in a gross margin of approximately 26.1%. Operating income was 128 million SAR, leading to a net income of 104 million SAR, indicating an operating margin of roughly 11.8% and a net margin of 9.6%. Without cohort median data for direct comparison, these margins appear stable but not exceptional, reflecting the competitive nature of the cement market.

Revenue concentration and segment details are not explicitly provided in the available data, limiting the ability to assess specific product or geographic exposure. The company’s primary activity is identified as unclassified within the broader Construction Materials sector, suggesting a focus on core cement production without diversified revenue streams disclosed in the current snapshot.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The latest normalized period shows revenue of 1.08 billion SAR, but without prior year or quarterly comparisons, year-over-year growth rates cannot be calculated. The stability of the share count at 157.5 million basic and diluted shares suggests no recent equity issuances or buybacks.

Risk factors include medium liquidity risk and low dilution risk. The key flag regarding negative net cash after debt subtraction highlights a potential constraint on financial flexibility, although the low debt-to-equity ratio mitigates solvency concerns. The absence of strong buy or buy recommendations from analysts, with a mean recommendation of 3.20 (Hold), suggests a neutral market sentiment.

Recent events are reflected in the analyst estimates, with a mean price target of 16.10 SAR and a median of 15.40 SAR. The high price target is 17.60 SAR, while the low is 15.00 SAR, indicating a relatively narrow range of analyst expectations. There are no strong buy or buy ratings, with four analysts holding a neutral view, suggesting limited near-term catalysts for significant price appreciation.

Operating and net margins significantly exceed cohort medians, indicating superior profitability relative to peers.

Cash conversion ratio is best-in-class at 3.46, far surpassing the cohort median of 1.2.

Debt-to-equity ratio of 0.06 is above the 75th percentile, reflecting a conservative capital structure.

Revenue grew 23.6% year-over-year in FY0, demonstrating strong top-line expansion momentum.

Long-term debt decreased to 156 million SAR in FY0, reducing leverage compared to prior years.

Analysts assign a hold rating with negative upside, suggesting limited near-term price appreciation potential.

Net income CAGR is negative 10.0% over four years, highlighting long-term earnings deterioration.

Revenue SAR 254.1M, −4,6% YoY; Operating income +19,1% YoY.

• ▍Revenue SAR 254.1M, −4,6% YoY
• ▍Operating income +19,1% YoY
• ▍Net income +25,5% YoY
• ▍Free cash flow −3,5% YoY
• ▍Net margin 14.8%

Revenue SAR 245.7M, +10,9% YoY; Operating income −0,4% YoY.

• ▍Revenue SAR 245.7M, +10,9% YoY
• ▍Operating income −0,4% YoY
• ▍Net income −12,1% YoY
• ▍Free cash flow −84,6% YoY
• ▍Net margin 10.0%

Revenue SAR 297.5M, +41,2% YoY; Operating income −8,2% YoY.

• ▍Revenue SAR 297.5M, +41,2% YoY
• ▍Operating income −8,2% YoY
• ▍Net income −8,8% YoY
• ▍Free cash flow −131,8% YoY
• ▍Net margin 9.5%

Revenue SAR 274.3M, +41,2% YoY; Operating income −40,5% YoY.

• ▍Revenue SAR 274.3M, +41,2% YoY
• ▍Operating income −40,5% YoY
• ▍Net income −45,6% YoY
• ▍Free cash flow +220,8% YoY
• ▍Net margin 7.9%

Revenue SAR 266.4M; Operating income SAR 35.9M.

• ▍Revenue SAR 266.4M
• ▍Operating income SAR 35.9M
• ▍Net margin 11.2%

Revenue SAR 221.5M; Operating income SAR 34.8M.

• ▍Revenue SAR 221.5M
• ▍Operating income SAR 34.8M
• ▍Net margin 12.6%

Revenue SAR 210.7M; Operating income SAR 32.7M.

• ▍Revenue SAR 210.7M
• ▍Operating income SAR 32.7M
• ▍Net margin 14.8%

Revenue SAR 194.2M; Operating income SAR 47.0M.

• ▍Revenue SAR 194.2M
• ▍Operating income SAR 47.0M
• ▍Net margin 20.5%

Revenue SAR 1.08B, +23,6% YoY; Operating income −28,5% YoY.

• ▍Revenue SAR 1.08B, +23,6% YoY
• ▍Operating income −28,5% YoY
• ▍Net income −33,5% YoY
• ▍Free cash flow −36,1% YoY
• ▍Net margin 9.6%

Revenue SAR 876.7M, +6,0% YoY; Operating income +42,4% YoY.

• ▍Revenue SAR 876.7M, +6,0% YoY
• ▍Operating income +42,4% YoY
• ▍Net income +31,0% YoY
• ▍Free cash flow +477,2% YoY
• ▍Net margin 17.9%

Revenue SAR 827.2M, −15,7% YoY; Operating income −45,9% YoY.

• ▍Revenue SAR 827.2M, −15,7% YoY
• ▍Operating income −45,9% YoY
• ▍Net income −44,3% YoY
• ▍Free cash flow −87,4% YoY
• ▍Net margin 14.5%

Revenue SAR 981.2M, +5,0% YoY; Operating income +32,8% YoY.

• ▍Revenue SAR 981.2M, +5,0% YoY
• ▍Operating income +32,8% YoY
• ▍Net income +35,0% YoY
• ▍Free cash flow +137,4% YoY
• ▍Net margin 22.0%