Many businesses have become obsolete, especially the news.
Simply put, technology and social media forced companies to adapt or die.
Unfortunately this seems to be the case for a Saudi Company founded operating since 1972
📈The Stock: SRMG (4210.SR)
The Saudi Research and Marketing Group, over the past 50 years they have built:
Regional Publishing across the middle east, newspapers and magazines.
As well as a few digital publications.
In short: It was cool for your grandparents, not for us.
💰Show me The Money
Metric | 2022 | 2023 | 2024 |
Revenue (Billions SAR) | 2.74 | 3.04 | 2.96 |
Net Income (Millions SAR) | 421.3 | 606.8 | 181.1 |
Return on Equity (%) | 13.85 | 18.15 | 6.28 |
This stock has been absolutely destroyed last year, mainly from the 70% Drop in net income.
And the nail in the coffin?
The cash they have on hand is SAR 642.83 M while the cashflow is –SAR 758.29 M .
Which means the company will have to take on more debt just to survive, which makes its net income weaker since it needs to pay off the loan.
It's a vicious cycle, one that is hard to get out of. If you own this stock, cut your losses and move on.
It won’t get any better…
See you Next Sunday