Dallah Healthcare Company (4004.SR) stock analysis

In our weekly check, Dallah Healthcare Company is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7.

About Dallah Healthcare Company

Dallah Healthcare Company is a Healthcare company (Medical - Care Facilities), listed on SAU as 4004.SR.

What our checks show for 4004.SR

Red flags

• Net debt is 4.8x a year of EBITDA (debt/equity 1.02). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (1x): interest is paid from cash or new debt.
• Analysts expect the net margin to shrink by 3.9 points from today's 13.2%.
• Free cash flow is negative (-2% of revenue): the business spends more cash than it brings in.
• The dividend takes 141% of profit: little cushion if profit falls.
• The stock has fallen as much as 63% from a peak. Would you have held through that?
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The gross margin fell by 1.2 points, to 34.9%: costs are rising faster than prices.
• Operating cash flow is only 0.72x net profit: part of the reported profit does not arrive as cash.
• Analysts expect earnings per share to shrink about 2.3% a year.
• A small company (market value $1.89 billion): usually riskier and followed by fewer analysts.
• The stock is still below its previous peak.
• Thinly traded (about 161 thousand shares a day): buying and selling can move the price.

Strengths

• Revenue grew 17.8% a year over the last 3 years.
• Earnings per share grew 20.4% a year over the last 3 years.
• Net profit grew 25.2% a year over the last 3 years.
• The price is 9 times earnings (P/E), reasonable for its growth.
• Beta -0.47: the stock usually moves less than the market.

Similar companies

CHE · PACS · HIMS · LFST · UHS · ENSG

Questions

What grade does Dallah Healthcare Company (4004.SR) have?

In our weekly check, Dallah Healthcare Company is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 4004.SR stock?

This week's biggest flags for Dallah Healthcare Company: High debt, Weak interest cover, Margins expected to shrink. In total 13 of 25 checks show a warning or a red flag.

What does Dallah Healthcare Company do?

Dallah Healthcare Company is a Healthcare company (Medical - Care Facilities), listed on SAU as 4004.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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