Edarat Communication and Information Technology Co.

Edarat Communication and Information Technology Co. is a Saudi Arabian IT services company listed on the Saudi Exchange under ticker 9557. The company specializes in providing advanced information technology solutions, including data center management, cloud services, cybersecurity, and digital transformation consulting. Edarat focuses on delivering high-quality IT infrastructure and managed services to enterprises, leveraging its expertise to support clients in optimizing their technology operations. With a market capitalization of 2.04 billion SAR, the company has established itself as a key player in the Kingdom's rapidly growing technology sector.

Edarat generates revenue primarily through the provision of IT services and solutions, including data center operations, cloud computing, and cybersecurity services. The company's business model is based on long-term contracts with clients, ensuring recurring revenue streams. In the most recent quarter (2025Q2), Edarat reported revenue of 46.78 million SAR and net income of 13.98 million SAR, reflecting strong growth. The company's high gross margin of 32.33% and operating margin of 21.52% indicate efficient operations and pricing power. Revenue grew 98.80% year-over-year, driven by increased demand for digital transformation services in Saudi Arabia.

Edarat operates in the Information Technology Services industry within the Technology sector. The company competes with other IT service providers in Saudi Arabia and the broader Middle East region. Its competitive positioning is strengthened by its focus on high-value services such as data center management and cybersecurity, which are in high demand as businesses accelerate their digital transformation. The company's EV/EBITDA of 45.23 and price-to-sales ratio of 10.59 reflect premium valuations, suggesting investors expect continued growth. Edarat's strong profitability metrics, including a profit margin of 18.89%, highlight its ability to generate returns in a competitive landscape.

Edarat's primary customers are enterprises and government entities in Saudi Arabia seeking advanced IT infrastructure and managed services. The company targets organizations undergoing digital transformation, including those in finance, healthcare, and telecommunications. Its main geographic market is Saudi Arabia, where it benefits from the government's Vision 2030 initiative, which emphasizes technology and innovation. With a cash position of 19.83 million SAR and minimal debt of 6.51 million SAR, Edarat maintains a healthy balance sheet to support its growth initiatives and serve its expanding client base.

An auto-generated descriptive profile based on company data, for informational purposes only.