Champ Resto Indonesia Tbk PT

Champ Resto Indonesia Tbk PT has a debt-to-equity ratio of 1.89, indicating a capital structure that is significantly leveraged. The company's liquidity position is assessed as medium, with a current ratio of 0.36, suggesting limited short-term liquidity to cover immediate liabilities. The company's free cash flow of 109,747,333,340 IDR supports operational flexibility, but its cash and equivalents of 3,365,615,980 IDR are insufficient to offset its long-term debt of 562,521,386,290 IDR.

Profitability metrics show a return on equity of 12.13% and a return on assets of 3.47%, which are below the industry median for Restaurants & Bars. The company's operating margin is 12.81%, and its net margin is 8.82%, both of which are in line with the industry average. However, the company's gross margin of 64.47% is slightly above the industry median, indicating efficient cost control in its core operations.

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 concentration in a single segment also limits its ability to hedge against sector-specific downturns.

Looking ahead, the company is projected to grow revenue by 5.2% in the current fiscal year and 3.8% in the next fiscal year. This growth trajectory is supported by a stable operating cash flow of 121,964,081,360 IDR and a capital expenditure of -25,737,874,710 IDR, indicating disciplined reinvestment. The company's capital expenditure is primarily focused on maintaining existing operations rather than expanding into new markets.

The company's risk profile is characterized by a medium liquidity risk and a low dilution risk. The key risk flag is the negative net cash position after subtracting total debt, which could constrain the company's ability to fund new initiatives without external financing. The company has not issued any new shares in the past 12 months, and there are no indications of dilution in the near term.

Recent events include the company's 2023 annual report, which disclosed a 4.1% increase in revenue compared to the previous year. The report also highlighted the company's focus on cost optimization and menu innovation to drive customer retention. No significant regulatory changes or legal proceedings were disclosed in the latest filings.

Cash conversion ratio of 3.37 is well above the 1.67 cohort median, reflecting strong operational cash generation efficiency.

Free cash flow grew 13.9% year-over-year to IDR 109 billion, providing liquidity for potential debt reduction or expansion.

Debt-to-equity ratio of 1.89 places the company in the bottom quartile of peers, indicating excessive financial leverage.

High credit risk flag suggests potential difficulties in meeting financial obligations given the elevated leverage and recent losses.

Revenue growth stalled at just 1.2% year-over-year, indicating limited top-line expansion momentum in the current period.

Revenue IDR 1.54T, +8,0% YoY; Operating income −6,0% YoY.

• ▍Revenue IDR 1.54T, +8,0% YoY
• ▍Operating income −6,0% YoY
• ▍Net income −16,4% YoY
• ▍Free cash flow +139,8% YoY
• ▍Net margin 1.2%

Revenue IDR 1.27T, +60,3% YoY; Operating income +437,2% YoY.

• ▍Revenue IDR 1.27T, +60,3% YoY
• ▍Operating income +437,2% YoY
• ▍Net income +950,1% YoY
• ▍Free cash flow +53,6% YoY
• ▍Net margin 4.9%