Miahona Co SCJSC

Miahona Co SCJSC maintains a liquidity position with a current ratio of 2.48, indicating the company can cover its short-term obligations with its current assets. However, the company's liquidity is constrained by a negative net cash position after subtracting total debt, which is flagged as a key risk. The company's free cash flow of 13.1 million SAR is modest relative to its operating cash flow of 54.6 million SAR, suggesting capital expenditures are consuming a significant portion of operating cash.

Profitability metrics show a return on equity of 1.87% and a return on assets of 0.72%, both below the typical thresholds for capital-intensive utility firms. These returns are suboptimal for a company in the Water & Related Utilities industry, where stable and predictable returns are expected. The company's operating margin of 12.9% (calculated as operating income of 9.04 million SAR on revenue of 70.24 million SAR) is in line with industry norms, but the net margin of 11.3% (7.93 million SAR net income) suggests some pressure from interest and tax expenses.

Miahona operates as a single-segment utility, with all revenue derived from its core water and utility services in Saudi Arabia. The company's geographic exposure is entirely domestic, with no disclosed international operations or revenue diversification. This concentration increases vulnerability to local regulatory and economic shifts.

The company's growth trajectory is modest, with revenue of 70.24 million SAR in the latest period. Analyst estimates suggest a slight decline in revenue to 699.65 million SAR, indicating a potential contraction in the near term. The company's capital expenditures of 26.86 million SAR are a drag on free cash flow, but necessary for maintaining infrastructure in a regulated utility environment.

Risk factors include a medium liquidity risk due to the negative net cash position and a debt-to-equity ratio of 1.2, which is relatively high for a utility firm. The company's dilution risk is low, with no near-term pressure from share issuance or convertible debt. However, the company's reliance on long-term debt (506.86 million SAR) exposes it to interest rate volatility and refinancing risk.

Recent events include the latest financial filing (market data), which provides the most recent revenue and profitability figures. No recent earnings call transcripts or material regulatory filings have been disclosed in the available data.

Revenue surged 18.7% year-over-year to SAR 699.7 million, demonstrating strong top-line growth momentum.

Cash conversion ratio of 6.89 ranks best-in-class, significantly outperforming the cohort median of 1.72.

Free cash flow reached SAR 70.3 million, providing solid liquidity for operations and debt service.

Dilution risk is assessed as low, protecting existing shareholders from immediate equity value erosion.

Debt-to-equity ratio of 1.2 is in the bottom quartile, indicating excessive leverage compared to peers.

Credit risk is flagged as high, suggesting significant potential for loan losses or default events.

Revenue SAR 162.8M, +18,8% YoY; Operating income −98,4% YoY.

• ▍Revenue SAR 162.8M, +18,8% YoY
• ▍Operating income −98,4% YoY
• ▍Net income +72,8% YoY
• ▍Free cash flow −321,3% YoY
• ▍Net margin -0.6%

Revenue SAR 175.1M, +97,9% YoY; Operating income −59,2% YoY.

• ▍Revenue SAR 175.1M, +97,9% YoY
• ▍Operating income −59,2% YoY
• ▍Net income −72,4% YoY
• ▍Free cash flow −74,5% YoY
• ▍Net margin 2.6%

Revenue SAR 186.6M, +165,6% YoY; Operating income +9,8% YoY.

• ▍Revenue SAR 186.6M, +165,6% YoY
• ▍Operating income +9,8% YoY
• ▍Net income −7,2% YoY
• ▍Free cash flow +4,2% YoY
• ▍Net margin 3.9%

Revenue SAR 175.2M; Operating income SAR 65.9M.

• ▍Revenue SAR 175.2M
• ▍Operating income SAR 65.9M
• ▍Net margin 35.1%

Revenue SAR 699.7M, +81,7% YoY; Operating income +53,5% YoY.

• ▍Revenue SAR 699.7M, +81,7% YoY
• ▍Operating income +53,5% YoY
• ▍Net income +77,8% YoY
• ▍Free cash flow −5,6% YoY
• ▍Net margin 10.4%