Saudi Energy Company Sjsc

Saudi Energy Company Sjsc maintains a capital structure characterized by significant leverage, with long-term debt of 199.87 billion SAR against total equity of 257.68 billion SAR, resulting in a debt-to-equity ratio of 0.78. The company’s liquidity position is constrained, evidenced by a current ratio of 0.42, which indicates that current liabilities exceed current assets. Despite generating 49.64 billion SAR in operating cash flow, the company reports negative free cash flow of -55.79 billion SAR due to substantial capital expenditures of 88.37 billion SAR, reflecting heavy investment in infrastructure. The market values the company at a market capitalization of 70.21 billion SAR, implying a price-to-book ratio of 0.27 and an EV/EBITDA of 13.57.

Profitability metrics show a net income of 12.97 billion SAR on revenue of 102.22 billion SAR, yielding a net margin of approximately 12.7%. The return on equity stands at 5.37%, while return on assets is 2.18%. These returns are generated from a gross profit of 20.79 billion SAR and operating income of 19.08 billion SAR. Without specific cohort median data provided in the input, direct comparative analysis against industry peers is omitted, but the absolute profitability levels indicate a stable earnings base typical of regulated utility operations.

The company’s revenue is derived from its core activity in electric utilities, with no specific segment or geographic breakdown provided in the available data. The total revenue of 102.22 billion SAR suggests a dominant position in its domestic market, consistent with the profile of a national energy provider. The absence of detailed segment data prevents further analysis of revenue concentration risks or diversification benefits across different business lines or regions.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot reflects a single normalized period, preventing the calculation of year-over-year revenue or net income growth rates. Consequently, trends in top-line expansion or bottom-line consistency cannot be quantified from the provided information.

Risk assessment indicates medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, highlighting the company’s reliance on debt financing and its negative free cash flow position. The low dilution risk is supported by the fact that basic and diluted shares outstanding are identical at 4.17 billion shares, indicating no immediate options or convertible securities impacting share count.

Recent observations from investor relations data show a mean analyst price target of 16.42 SAR, with a median target of 16.40 SAR, compared to the current market price of 16.85 SAR. The mean recommendation is 2.67, suggesting a neutral to slightly positive outlook, with one strong buy, one buy, and three hold ratings. Competitor context lists Duke Energy, NextEra Energy, and Southern Company, but no specific comparative metrics are provided for these entities.

Revenue grew 15.3% year-over-year to SAR 102.2 billion in FY2026, demonstrating strong top-line expansion momentum.

Net income surged 88.9% year-over-year to SAR 12.97 billion in FY2026, indicating significant profitability recovery.

Cash conversion ratio of 3.59 ranks in the top quartile of the Electric Utilities cohort, suggesting strong cash generation.

Free cash flow deteriorated sharply to negative SAR 55.8 billion in FY2026, signaling severe liquidity pressure and capital intensity.

Long-term debt increased to SAR 199.9 billion in FY2026, raising concerns about high leverage and potential credit risk.

Return on equity of 5.37% trails the Electric Utilities cohort median of 6.28%, indicating subpar capital efficiency.

Analysts assign a hold rating with a mean price target of SAR 16.42, implying 2.5% downside from the current price.

Revenue SAR 21.34B, +9,4% YoY; Operating income +35,1% YoY.

• ▍Revenue SAR 21.34B, +9,4% YoY
• ▍Operating income +35,1% YoY
• ▍Net income +89,3% YoY
• ▍Free cash flow +25,9% YoY
• ▍Net margin 8.6%

Revenue SAR 23.95B, +8,3% YoY; Operating income +171,8% YoY.

• ▍Revenue SAR 23.95B, +8,3% YoY
• ▍Operating income +171,8% YoY
• ▍Net income +126,4% YoY
• ▍Free cash flow +2,2% YoY
• ▍Net margin 5.8%

Revenue SAR 31.05B, +9,7% YoY; Operating income −15,3% YoY.

• ▍Revenue SAR 31.05B, +9,7% YoY
• ▍Operating income −15,3% YoY
• ▍Net income −22,7% YoY
• ▍Free cash flow −341,4% YoY
• ▍Net margin 17.2%

Revenue SAR 27.72B, +23,9% YoY; Operating income +20,9% YoY.

• ▍Revenue SAR 27.72B, +23,9% YoY
• ▍Operating income +20,9% YoY
• ▍Net income +21,6% YoY
• ▍Free cash flow −161,9% YoY
• ▍Net margin 19.1%

Revenue SAR 19.50B; Operating income SAR 2.35B.

• ▍Revenue SAR 19.50B
• ▍Operating income SAR 2.35B
• ▍Net margin 5.0%

Revenue SAR 22.11B; Operating income -SAR 4.12B.

• ▍Revenue SAR 22.11B
• ▍Operating income -SAR 4.12B
• ▍Net margin -23.8%

Revenue SAR 28.32B; Operating income SAR 8.28B.

• ▍Revenue SAR 28.32B
• ▍Operating income SAR 8.28B
• ▍Net margin 24.4%

Revenue SAR 22.38B; Operating income SAR 5.59B.

• ▍Revenue SAR 22.38B
• ▍Operating income SAR 5.59B
• ▍Net margin 19.4%

Revenue SAR 102.22B, +15,3% YoY; Operating income +62,1% YoY.

• ▍Revenue SAR 102.22B, +15,3% YoY
• ▍Operating income +62,1% YoY
• ▍Net income +89,0% YoY
• ▍Free cash flow −83,4% YoY
• ▍Net margin 12.7%

Revenue SAR 88.67B, +17,7% YoY; Operating income −16,9% YoY.

• ▍Revenue SAR 88.67B, +17,7% YoY
• ▍Operating income −16,9% YoY
• ▍Net income −33,0% YoY
• ▍Free cash flow −493,2% YoY
• ▍Net margin 7.7%

Revenue SAR 75.33B, +4,5% YoY; Operating income −21,2% YoY.

• ▍Revenue SAR 75.33B, +4,5% YoY
• ▍Operating income −21,2% YoY
• ▍Net income −32,3% YoY
• ▍Free cash flow −382,7% YoY
• ▍Net margin 13.6%

Revenue SAR 72.08B, +4,0% YoY; Operating income +2,4% YoY.

• ▍Revenue SAR 72.08B, +4,0% YoY
• ▍Operating income +2,4% YoY
• ▍Net income +5,2% YoY
• ▍Free cash flow −65,0% YoY
• ▍Net margin 21.0%