Earnings Alerts

Saudi Arabian Fertilizer Co (SAFCO) Earnings: 2Q Profit Misses Estimates Despite Increased Revenue

  • Profit: 705 million riyals, an increase of 8.3% year-over-year (y/y). However, this was below the estimate of 801 million riyals.
  • Revenue: 2.68 billion riyals, up by 1.8% y/y, surpassing the estimate of 2.27 billion riyals.
  • Operating Profit: 678 million riyals, unchanged compared to the previous year, but below the estimated 745 million riyals.
  • Earnings Per Share (EPS): 1.48 riyals, compared to 1.37 riyals y/y, matching the estimate of 1.47 riyals.
  • EBITDA: 920 million riyals, an increase of 2% y/y.
  • EBITDA Margin: 34%, consistent with the previous year’s margin of 34%.
  • Free Cash Flow: 159 million riyals, a significant decrease of 71% y/y.
  • The decrease in average prices and an increase in sales volume were noted as key factors.
  • Demand was largely driven by seasonal preparation needs in the US, EU, and APAC regions.
  • Strong demand is expected due to seasonal transitions in South America and the Indian subcontinent.
  • Analyst Ratings: 6 buys, 9 holds, and 0 sells.

A look at Saudi Arabian Fertilizer Co Smart Scores

FactorScoreMagnitude
Value3
Dividend5
Growth4
Resilience5
Momentum4
OVERALL SMART SCORE4.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Saudi Arabian Fertilizer Co (Safco) shows a promising long-term outlook. With strong scores in categories like Dividend and Resilience, the company appears well-positioned to weather market fluctuations and provide consistent returns to investors. Safco’s high Dividend score signifies a robust dividend payment history, making it an attractive choice for income-focused investors. Additionally, its top-notch Resilience score suggests that the company has the strength to withstand economic challenges and maintain stability over time.

Safco also demonstrates solid performance in Growth and Momentum, indicating potential for future expansion and positive market sentiment. While the Value score is not the highest, the overall Smart Scores paint a positive picture for Saudi Arabian Fertilizer Co‘s prospects. As a manufacturer of essential agricultural supplies, Safco plays a key role in the fertilizers industry, producing a range of products like ammonia, urea, sulfuric acid, and melamine. This wide product portfolio positions Safco well to benefit from the growing demand for agricultural inputs both locally and globally.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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