Al Rajhi Banking and Investment Corporation (1120.SR) stock analysis

In our weekly check, Al Rajhi Banking and Investment Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 1, red flags: 11.

About Al Rajhi Banking and Investment Corporation

Al Rajhi Banking and Investment Corporation is a Financial Services company (Banks - Regional), listed on SAU as 1120.SR.

What our checks show for 1120.SR

Red flags

• The net margin fell by 23 points over 5 years, to 34.5%: the company keeps less of each sale as profit.
• The gross margin fell by 39.5 points, to 60.5%: costs are rising faster than prices.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Analysts expect revenue to shrink about 10.8% a year.
• Free cash flow is negative (-36.1% of revenue): the business spends more cash than it brings in.
• The dividend takes 134% of profit: little cushion if profit falls.
• The stock has fallen as much as 72% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 11.6 years.
• Return on capital (ROCE) is only 2.8%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect earnings per share to shrink about 4% a year.

Strengths

• Analysts expect the net margin to improve by 6 points from today's 34.5%.
• Revenue grew 36% a year over the last 3 years.
• Earnings per share grew 11.3% a year over the last 3 years.
• Net profit grew 13.1% a year over the last 3 years.
• The company keeps 34.5% of its revenue as net profit.
• The price is 12.2 times earnings (P/E), reasonable for its growth.

Next earnings report: 2026-10-26

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Questions

What grade does Al Rajhi Banking and Investment Corporation (1120.SR) have?

In our weekly check, Al Rajhi Banking and Investment Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 1, red flags: 11. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1120.SR stock?

This week's biggest flags for Al Rajhi Banking and Investment Corporation: Margins falling, Gross margin falling, Profits not backed by cash. In total 12 of 25 checks show a warning or a red flag.

What does Al Rajhi Banking and Investment Corporation do?

Al Rajhi Banking and Investment Corporation is a Financial Services company (Banks - Regional), listed on SAU as 1120.SR.

When does Al Rajhi Banking and Investment Corporation report earnings next?

The next earnings report is expected on 2026-10-26. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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