Ambassador Hotel Ltd

Ambassador Hotel Ltd maintains a strong liquidity position with a current ratio of 10.15, indicating a robust ability to meet short-term obligations. The company holds TWD 2,830,382,000 in cash and equivalents, which is significantly higher than its long-term debt of TWD 3,636,183,000. However, the company's free cash flow is negative at TWD -5,130,000, suggesting that capital expenditures are outpacing operating cash flow.

Profitability metrics for Ambassador Hotel Ltd are weak, with a net loss of TWD -8,721,000 and an operating loss of TWD -17,079,000. The return on equity (ROE) is -0.02%, and the return on assets (ROA) is also -0.02%, both significantly below the industry median for Restaurants & Bars. The company's gross profit margin is 26.33%, which is in line with the industry median, but the operating margin is negative, indicating poor cost control and operational efficiency.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and regulatory changes. The company's revenue of TWD 296,608,000 is derived entirely from its core hospitality and food and beverage operations.

Looking ahead, the company is projected to experience a decline in revenue, with a negative outlook for the current fiscal year. The operating cash flow is expected to remain positive, but the free cash flow is likely to stay negative due to ongoing capital expenditures. The company's capital expenditure of TWD -120,617,000 indicates a commitment to maintaining and upgrading its facilities, which is a necessary investment in the hospitality sector.

The risk assessment for Ambassador Hotel Ltd highlights medium liquidity risk and low dilution risk. The company's net cash position is negative after accounting for total debt, which could impact its ability to fund operations without external financing. However, the low dilution risk suggests that the company is not likely to issue additional shares in the near term, preserving shareholder value.

Recent events and filings indicate that the company has not disclosed any major strategic changes or significant legal issues. The latest analyst estimates align closely with the company's reported revenue and EPS, suggesting that the market has a stable expectation for the company's performance. The company's financial statements show no signs of material misstatements or accounting irregularities.

Ambassador Hotel maintains a low debt-to-equity ratio of 0.1, significantly below the cohort median of 0.73.

The company generated TWD 1.02 billion in free cash flow in 2016, demonstrating strong historical cash generation capability.

Revenue grew 4.2% year-over-year in 2019, reaching TWD 1.36 billion, indicating modest top-line expansion.

Operating income improved by 53.7% year-over-year in 2019, showing a reduction in operational losses.

Dilution risk is assessed as low, suggesting limited immediate threat to existing shareholder equity value.

Operating and net margins rank in the bottom quartile of the Restaurants & Bars cohort, reflecting poor efficiency.

The company faces high credit risk, posing a significant threat to its financial stability and borrowing costs.

Return on equity is negative at -0.02%, underperforming the cohort median of 3.88% significantly.

Revenue TWD 378.5M, +0,8% YoY; Operating income −65,1% YoY.

• ▍Revenue TWD 378.5M, +0,8% YoY
• ▍Operating income −65,1% YoY
• ▍Net income +115,2% YoY
• ▍Free cash flow +86,2% YoY
• ▍Net margin 15.5%

Revenue TWD 362.2M, +11,2% YoY; Operating income +107,3% YoY.

• ▍Revenue TWD 362.2M, +11,2% YoY
• ▍Operating income +107,3% YoY
• ▍Net income +32,8% YoY
• ▍Free cash flow +5,2% YoY
• ▍Net margin -40.6%

Revenue TWD 306.7M, +3,4% YoY; Operating income +97,7% YoY.

• ▍Revenue TWD 306.7M, +3,4% YoY
• ▍Operating income +97,7% YoY
• ▍Net income +2 773,5% YoY
• ▍Free cash flow +375,1% YoY
• ▍Net margin 76.0%

Revenue TWD 375.6M; Operating income TWD 33.7M.

• ▍Revenue TWD 375.6M
• ▍Operating income TWD 33.7M
• ▍Net margin -103.0%

Revenue TWD 1.36B, +4,2% YoY; Operating income +53,7% YoY.

• ▍Revenue TWD 1.36B, +4,2% YoY
• ▍Operating income +53,7% YoY
• ▍Net income −79,3% YoY
• ▍Free cash flow −163,0% YoY
• ▍Net margin 15.5%

Revenue TWD 1.30B, +1,9% YoY; Operating income +87,5% YoY.

• ▍Revenue TWD 1.30B, +1,9% YoY
• ▍Operating income +87,5% YoY
• ▍Net income +105,8% YoY
• ▍Free cash flow +253,8% YoY
• ▍Net margin 77.9%

Revenue TWD 1.28B, −11,8% YoY; Operating income +65,3% YoY.

• ▍Revenue TWD 1.28B, −11,8% YoY
• ▍Operating income +65,3% YoY
• ▍Net income −54,7% YoY
• ▍Free cash flow −83,5% YoY
• ▍Net margin 38.5%

Revenue TWD 1.45B, −4,5% YoY; Operating income −135,2% YoY.

• ▍Revenue TWD 1.45B, −4,5% YoY
• ▍Operating income −135,2% YoY
• ▍Net income +1 327,8% YoY
• ▍Free cash flow +7 207,9% YoY
• ▍Net margin 75.1%

Revenue TWD 1.52B; Operating income -TWD 312.7M.

• ▍Revenue TWD 1.52B
• ▍Operating income -TWD 312.7M
• ▍Net margin -5.8%