CMR SAB de CV

CMR SAB de CV has a liquidity profile marked by a current ratio of 0.64, indicating that its current liabilities exceed its current assets, which is below the industry median for Restaurants & Bars. The company's liquidity_fpt score is moderate, with cash and equivalents amounting to 69.18 million MXN, which is insufficient to cover its total liabilities of 2.62 billion MXN. The debt-to-equity ratio of 4.43 suggests a high reliance on debt financing, which could constrain its financial flexibility.

Profitability metrics show a return on equity of -2.54% and a return on assets of -0.32%, both of which are negative and significantly below the industry median for Restaurants & Bars. The company reported a net loss of 9.76 million MXN, despite a gross profit of 467.89 million MXN, indicating high operating expenses or other non-operating costs. The operating income of 37.02 million MXN is also below the industry median, suggesting operational inefficiencies or competitive pressures.

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 downturns or regulatory changes. The absence of segment-specific data limits the ability to assess the performance of different parts of the business.

Looking ahead, the company's revenue is expected to grow, with the most recent actual revenue of 1.64 billion MXN. However, the net loss of 9.76 million MXN raises concerns about its ability to sustain profitability. The capital expenditure of -12.10 million MXN indicates ongoing investment in the business, but the free cash flow of 59.88 million MXN is modest and may not be sufficient to fund future growth without additional financing.

The risk assessment highlights a medium liquidity risk and a low dilution risk. The company's net cash is negative after subtracting total debt, which could lead to liquidity constraints. The dilution risk is low, as there is no indication of significant share issuance or dilution potential. However, the high debt-to-equity ratio and negative net income suggest that the company may need to raise additional capital, which could increase dilution risk in the future.

Recent events include the filing of financial data showing a net loss and a negative return on equity. The company's operating cash flow of 85.86 million MXN provides some liquidity, but it is not enough to cover the total debt. The absence of recent earnings calls or transcripts limits the visibility into management's strategic direction and operational performance.

Operating income surged 334.6% year-over-year, demonstrating significant operational leverage and improved core profitability despite revenue headwinds.

Free cash flow increased 71.0% year-over-year, indicating strong cash generation capabilities relative to recent prior periods.

Operating margin of 4.36% exceeds the 3.53% median for the Restaurants & Bars cohort, suggesting superior cost management.

Revenue grew 25.4% year-over-year, showing top-line expansion momentum in the most recent comparable period.

Capital expenditure intensity is above the 75th percentile of peers, implying lower reinvestment needs relative to revenue.

The company carries a high credit risk flag, signaling potential difficulties in meeting debt obligations or maintaining solvency.

Debt-to-equity ratio of 4.43 is in the bottom quartile of peers, indicating excessive leverage and financial fragility.

Net margin of -1.15% trails the 2.39% cohort median, reflecting an inability to convert revenue into net profit.

Revenue declined at a 1.4% CAGR over four years, indicating a long-term structural contraction in top-line growth.

Revenue MXN 1.01B, +11,0% YoY; Operating income −26,4% YoY.

• ▍Revenue MXN 1.01B, +11,0% YoY
• ▍Operating income −26,4% YoY
• ▍Net income −53,8% YoY
• ▍Free cash flow −16,0% YoY
• ▍Net margin 2.6%

Revenue MXN 970.4M, +7,5% YoY; Operating income +22,1% YoY.

• ▍Revenue MXN 970.4M, +7,5% YoY
• ▍Operating income +22,1% YoY
• ▍Net income −6 040,8% YoY
• ▍Free cash flow +1 077,9% YoY
• ▍Net margin -3.9%

Revenue MXN 980.7M, +5,9% YoY; Operating income +11,4% YoY.

• ▍Revenue MXN 980.7M, +5,9% YoY
• ▍Operating income +11,4% YoY
• ▍Net income −0,8% YoY
• ▍Free cash flow +147,0% YoY
• ▍Net margin 1.9%

Revenue MXN 902.1M, +6,1% YoY; Operating income +13,4% YoY.

• ▍Revenue MXN 902.1M, +6,1% YoY
• ▍Operating income +13,4% YoY
• ▍Net income −112,1% YoY
• ▍Free cash flow −56,1% YoY
• ▍Net margin -2.3%

Revenue MXN 3.86B, +7,6% YoY; Operating income −3,8% YoY.

• ▍Revenue MXN 3.86B, +7,6% YoY
• ▍Operating income −3,8% YoY
• ▍Net income −120,0% YoY
• ▍Free cash flow +50,2% YoY
• ▍Net margin -0.3%

Revenue MXN 3.59B, +1,6% YoY; Operating income +4,1% YoY.

• ▍Revenue MXN 3.59B, +1,6% YoY
• ▍Operating income +4,1% YoY
• ▍Net income −18,7% YoY
• ▍Free cash flow −27,3% YoY
• ▍Net margin 1.9%

Revenue MXN 3.53B, +5,6% YoY; Operating income +14,3% YoY.

• ▍Revenue MXN 3.53B, +5,6% YoY
• ▍Operating income +14,3% YoY
• ▍Net income +373,6% YoY
• ▍Free cash flow −4,0% YoY
• ▍Net margin 2.3%