2287.SR(2287.SR)

$24.44—

Chart

2287.SR(2287.SR)

$24.44—

Chart Studio

2287.SR(2287.SR)

2287.SR

Overview Notebook Intelligence Chart History Fundmntls TTM Earnings Analysts News Financials Segments Insiders Institl.DCF Peers

7/2/26

ARABIAN COMPANY FOR AGRICULTURAL AND INDUSTRIAL INVESTMENT (2287.SR)

Thursday

1:32 PM

Thesis: The combination of rising raw material costs and negative net margins is leading to increased skepticism about the company's ability to return to profitability.

Revenue Outlook

Metric	FY2025	FY2026E	FY2027E
Revenue	$1.4B	$1.5B	$1.6B
Rev. Growth	+8.5%	+9.8%	+6.6%
EPS	$-4.10	$-0.20	$0.70
EPS Growth	-556%	+95.1%	+450%
P/E (fwd)	—	—	34.9×

★ Analysts see FY2026 revenue reaching $1.5B — +9.8% growth in a single year.

What Could Go Wrong

1The company is experiencing a significant increase in raw material costs, with wheat prices up 20% YoY, which could further compress margins.
2The company's operating cash flow has remained flat despite revenue growth, indicating potential liquidity issues ahead.
3Regulatory changes in food safety and agricultural practices
4Long-term shifts in consumer preferences towards healthier or organic options
5Increased competition from local and international packaged food brands
6Potential market entry of disruptive food technology companies
7High debt levels could lead to liquidity issues if cash flow does not improve
8Negative net margins indicate ongoing profitability challenges

FY2025 Snapshot

Revenue: $1.4B
Rev. Growth: +8.5%
Gross Margin: 9.4%
Op. Margin: -5.5%
Net Margin: -9.1%
Net Income: $-123M
NI Growth: -554%
EPS: $-4.10
1Y Return: -44.1%

2287.SR Chart

My Notes

"Management's recent comments highlight concerns over rising costs and competitive pressures."
Moat: The company's established brand presence provides some competitive advantage, but it is vulnerable to price competition.
Watch: The rise of e-commerce and direct-to-consumer food brands poses a significant threat to traditional distribution models.
value - Investors may see potential in turnaround opportunities given the low price-to-sales ratio (0.5x).
The company's high debt-to-equity ratio (2.96) means that rising interest rates could increase financing costs…
Watch on earnings: Wheat futures price (ZWUSX), Corn futures price (ZCUSX), Operating cash flow.

One Sentence Summary:

The bear case: the company is experiencing a significant increase in raw material costs, with wheat prices up 20% yoy, which could further compress margins.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

Writing up the research note…

First read for a new ticker takes about 20–30 seconds while we build the analysis from the latest fundamentals, estimates, and intelligence. It's saved after this, so future visits are instant.

Explore More

S&P 500 Screener

Filter and sort all 500 stocks

Market Movers

Today's biggest gainers and losers

Market Heatmap

Visual sector performance

Metric

FY2025

FY2026E

FY2027E

P/E (fwd)

—

34.9×

What Could Go Wrong

1The company is experiencing a significant increase in raw material costs, with wheat prices up 20% YoY, which could further compress margins.

2The company's operating cash flow has remained flat despite revenue growth, indicating potential liquidity issues ahead.

3Regulatory changes in food safety and agricultural practices

4Long-term shifts in consumer preferences towards healthier or organic options

5Increased competition from local and international packaged food brands

6Potential market entry of disruptive food technology companies

7High debt levels could lead to liquidity issues if cash flow does not improve

8Negative net margins indicate ongoing profitability challenges

My Notes

"Management's recent comments highlight concerns over rising costs and competitive pressures."

Moat: The company's established brand presence provides some competitive advantage, but it is vulnerable to price competition.

Watch: The rise of e-commerce and direct-to-consumer food brands poses a significant threat to traditional distribution models.

value - Investors may see potential in turnaround opportunities given the low price-to-sales ratio (0.5x).

The company's high debt-to-equity ratio (2.96) means that rising interest rates could increase financing costs…

Watch on earnings: Wheat futures price (ZWUSX), Corn futures price (ZCUSX), Operating cash flow.