Arabian Drilling Company (2381.SR) stock analysis

In our weekly check, Arabian Drilling Company is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 13 pass, warnings: 2, red flags: 8.

About Arabian Drilling Company

Arabian Drilling Company is an Energy company (Oil & Gas Drilling), listed on SAU as 2381.SR.

What our checks show for 2381.SR

Red flags

• Operating profit does not cover the interest bill (0.2x): interest is paid from cash or new debt.
• The net margin fell by 18.1 points over 5 years, to -5.6%: the company keeps less of each sale as profit.
• The gross margin fell by 14.3 points, to 7.4%: costs are rising faster than prices.
• Earnings per share fell 33.1% a year over the last 3 years.
• The company is losing money: the net margin is -5.6%.
• Arabian Drilling Company pays a dividend while losing money: it is funded from reserves or debt.
• The stock has fallen as much as 65% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 0.5%.

Warning signs

• The stock is still below its previous peak.
• Thinly traded (about 124 thousand shares a day): buying and selling can move the price.

Strengths

• Operating cash flow is 5.01x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 49.9% a year over the next years.
• Analysts expect the net margin to improve by 19.3 points from today's -5.6%.
• Beta 0.65: the stock usually moves less than the market.
• Pay in shares is only 0% of free cash flow.

Similar companies

NE · RIG · VAL · PTEN · 2382.SR · HP

Questions

What grade does Arabian Drilling Company (2381.SR) have?

In our weekly check, Arabian Drilling Company is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 13 pass, warnings: 2, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 2381.SR stock?

This week's biggest flags for Arabian Drilling Company: Weak interest cover, Margins falling, Gross margin falling. In total 10 of 23 checks show a warning or a red flag.

What does Arabian Drilling Company do?

Arabian Drilling Company is an Energy company (Oil & Gas Drilling), listed on SAU as 2381.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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