Arabian Centres Company (4321.SR) stock analysis

In our weekly check, Arabian Centres Company is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 6, red flags: 5.

About Arabian Centres Company

Arabian Centres Company is a Real Estate company (Real Estate - Services), listed on SAU as 4321.SR.

What our checks show for 4321.SR

Red flags

• Net debt is 9.4x a year of EBITDA (debt/equity 1.1). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0.5x): interest is paid from cash or new debt.
• Analysts expect the net margin to shrink by 24.3 points from today's 55%.
• The dividend takes 159% of profit: little cushion if profit falls.
• Return on capital (ROCE) is only 4.9%.

Warning signs

• Operating cash flow is only 0.69x net profit: part of the reported profit does not arrive as cash.
• Analysts expect earnings per share to shrink about 3% a year.
• Revenue grew only 0.9% a year over the last 3 years.
• A small company (market value $1.72 billion): usually riskier and followed by fewer analysts.
• The stock has fallen as much as 58% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• The net margin rose by 33.6 points over 5 years, to 55%.
• The gross margin is 82.7% and has risen by 26.1 points: pricing power is holding.
• The company keeps 55% of its revenue as net profit.
• Free cash flow is 37.1% of revenue: cash for dividends, buybacks or growth.
• The price is 5.1 times earnings (P/E), reasonable for its growth.
• Beta 0.38: the stock usually moves less than the market.

Similar companies

PSPN.SW · HHH · LI.PA

Questions

What grade does Arabian Centres Company (4321.SR) have?

In our weekly check, Arabian Centres Company is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 6, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 4321.SR stock?

This week's biggest flags for Arabian Centres Company: High debt, Weak interest cover, Margins expected to shrink. In total 11 of 25 checks show a warning or a red flag.

What does Arabian Centres Company do?

Arabian Centres Company is a Real Estate company (Real Estate - Services), listed on SAU as 4321.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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