Saudi Electricity Company (5110.SR) stock analysis

In our weekly check, Saudi Electricity Company is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 5, red flags: 8.

About Saudi Electricity Company

Saudi Electricity Company is an Utilities company (Regulated Electric), listed on SAU as 5110.SR.

What our checks show for 5110.SR

Red flags

• Net debt is 5.4x a year of EBITDA (debt/equity 0.91). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 8.2 points over 5 years, to 12.5%: the company keeps less of each sale as profit.
• The gross margin fell by 9.4 points, to 20.2%: costs are rising faster than prices.
• Analysts expect the net margin to shrink by 7 points from today's 12.5%.
• Free cash flow is negative (-33.9% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 83% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 3.4%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Operating profit covers interest only 3.6 times: a weak year could make the payments hard.
• Analysts expect earnings per share to shrink about 23.4% a year.
• Earnings per share fell 4.1% a year over the last 3 years.
• Net profit fell 3.9% a year over the last 3 years.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 3.99x net profit: the profit arrives as real cash.
• The dividend takes 22% of profit: there is a cushion.
• The price is 4.7 times earnings (P/E), reasonable for its growth.
• A large company: market value $16.63 billion.
• Beta -0.06: the stock usually moves less than the market.

Next earnings report: 2026-11-11

Similar companies

D · AEP · ETR · 5347.KL · XEL · EXC

Questions

What grade does Saudi Electricity Company (5110.SR) have?

In our weekly check, Saudi Electricity Company is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 5, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 5110.SR stock?

This week's biggest flags for Saudi Electricity Company: High debt, Margins falling, Gross margin falling. In total 13 of 25 checks show a warning or a red flag.

What does Saudi Electricity Company do?

Saudi Electricity Company is an Utilities company (Regulated Electric), listed on SAU as 5110.SR.

When does Saudi Electricity Company report earnings next?

The next earnings report is expected on 2026-11-11. 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 2026-10-31

Open the full analysis