Arabian Internet and Communications Services Co. Ltd. (7202.SR) stock analysis

In our weekly check, Arabian Internet and Communications Services Co. Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 4, red flags: 4.

About Arabian Internet and Communications Services Co. Ltd.

Arabian Internet and Communications Services Co. Ltd. is a Communication Services company (Telecommunications Services), listed on SAU as 7202.SR.

What our checks show for 7202.SR

Red flags

• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Free cash flow is negative (-2.2% of revenue): the business spends more cash than it brings in.
• The dividend takes 298% of profit: little cushion if profit falls.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The gross margin fell by 0.8 points, to 21%: costs are rising faster than prices.
• The stock has fallen as much as 56% from a peak. Would you have held through that?
• The stock is still below its previous peak.
• Thinly traded (about 376 thousand shares a day): buying and selling can move the price.

Strengths

• Debt is low: 0.26x equity.
• The net margin rose by 1.1 points over 5 years, to 11.8%.
• Earnings per share grew 12.5% a year over the last 3 years.
• Net profit grew 12.6% a year over the last 3 years.
• The price is 14.4 times earnings (P/E), reasonable for its growth.
• Beta 0.28: the stock usually moves less than the market.

Similar companies

GIB-A.TO · BR · CAP.PA · CDW · AMS.MC

Questions

What grade does Arabian Internet and Communications Services Co. Ltd. (7202.SR) have?

In our weekly check, Arabian Internet and Communications Services Co. Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 4, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 7202.SR stock?

This week's biggest flags for Arabian Internet and Communications Services Co. Ltd.: Profits not backed by cash, Weak free cash flow, Dividend stretched. In total 8 of 25 checks show a warning or a red flag.

What does Arabian Internet and Communications Services Co. Ltd. do?

Arabian Internet and Communications Services Co. Ltd. is a Communication Services company (Telecommunications Services), listed on SAU as 7202.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

Open the full analysis