Saudi Kayan Petrochemical Company (2350.SR) stock analysis

In our weekly check, Saudi Kayan Petrochemical Company is graded D (A to F). Of 22 checks on debt, profit, cash flow and trend: 8 pass, warnings: 2, red flags: 12.

About Saudi Kayan Petrochemical Company

Saudi Kayan Petrochemical Company is a Basic Materials company (Chemicals), listed on SAU as 2350.SR.

What our checks show for 2350.SR

Red flags

• Net debt is 4.9x a year of EBITDA (debt/equity 1.17). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (-2.6x): interest is paid from cash or new debt.
• The net margin fell by 37.4 points over 5 years, to -18.6%: the company keeps less of each sale as profit.
• The gross margin fell by 45.5 points, to -17.4%: costs are rising faster than prices.
• Weak EPS forecast
• Revenue fell 27.8% a year over the last 3 years.
• Weak EPS growth
• The company is losing money: the net margin is -18.6%.
• Free cash flow is negative (-22.6% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 81% from a peak. Would you have held through that?
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• A small company (market value $1.94 billion): usually riskier and followed by fewer analysts.
• The stock is still below its previous peak.

Strengths

• Analysts expect revenue to grow about 41.3% a year over the next years.
• Analysts expect the net margin to improve by 11.1 points from today's -18.6%.
• Beta 0.09: the stock usually moves less than the market.
• Actively traded: about 4.8 million shares a day.

Similar companies

EMN · ESI · AXTA · WLK

Questions

What grade does Saudi Kayan Petrochemical Company (2350.SR) have?

In our weekly check, Saudi Kayan Petrochemical Company is graded D (A to F). Of 22 checks on debt, profit, cash flow and trend: 8 pass, warnings: 2, red flags: 12. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 2350.SR stock?

This week's biggest flags for Saudi Kayan Petrochemical Company: High debt, Weak interest cover, Margins falling. In total 14 of 22 checks show a warning or a red flag.

What does Saudi Kayan Petrochemical Company do?

Saudi Kayan Petrochemical Company is a Basic Materials company (Chemicals), listed on SAU as 2350.SR.

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 2026-11-07

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