National Gas and Industrialization Company SJSC

The company maintains a conservative capital structure with a debt-to-equity ratio of 0.04, indicating minimal leverage and a strong equity base. Liquidity is moderate, with a current ratio of 1.11, and free cash flow of SAR 29.2 million, though net cash is negative after subtracting total debt. The company's liquidity position is supported by SAR 6.3 million in cash and equivalents, but its long-term debt of SAR 69.95 million suggests some exposure to refinancing risk.

Profitability metrics show a return on equity of 2.98% and a return on assets of 2.18%, both below the typical thresholds for high-performing utilities. The operating margin is 4.64% (SAR 29.84 million operating income on SAR 642.88 million revenue), and the net profit margin is 9.02% (SAR 57.99 million net income on SAR 642.88 million revenue). These figures suggest the company is generating acceptable but not exceptional returns for its asset base.

The company's revenue is concentrated in a single economic region, Saudi Arabia, with no disclosed segment or geographic diversification. This lack of diversification increases exposure to local economic and regulatory shifts.

The company's growth trajectory is modest, with no disclosed revenue growth rates or future projections. Capital expenditures of SAR 75.24 million in the latest period indicate ongoing investment in infrastructure, but the negative value suggests a net outflow. The company's operating cash flow of SAR 53.89 million supports its capital needs but does not indicate aggressive expansion.

Risk factors include moderate liquidity risk due to the current ratio and negative net cash position, and low dilution risk as shares outstanding remain unchanged between basic and diluted counts. The risk assessment flags net cash as negative after subtracting total debt, signaling potential refinancing challenges.

Recent filings and transcripts are not available in the provided data, but the company's ESG score of 18.60 and a D+ grade suggest significant environmental and governance concerns. The environment pillar score is 0, indicating no positive environmental impact, while the governance pillar is 37.05, suggesting room for improvement in corporate governance practices.

Revenue grew at a 14.5% CAGR over four years, demonstrating strong top-line expansion for the company.

Operating income surged 29.8% year-over-year, indicating significant improvement in core operational profitability and efficiency.

The company maintains a low debt-to-equity ratio of 0.04, reflecting a conservative capital structure with minimal leverage risk.

Net margin of 9.0% exceeds the natural gas utilities cohort median of 4.5%, highlighting superior bottom-line performance.

Dilution risk is assessed as low, suggesting current ownership structures are stable and protected from significant share issuance.

Net income growth stagnated at just 0.2% year-over-year, failing to keep pace with substantial revenue increases.

The company faces medium liquidity and credit risks, which could constrain financial flexibility and increase borrowing costs.

Revenue SAR 1.90B; Operating income SAR 73.5M.

• ▍Revenue SAR 1.90B
• ▍Operating income SAR 73.5M
• ▍Net margin 10.6%