Ege Seramik Sanayi ve Ticaret AS

Ege Seramik has a market price of 3.63 TRY and a market cap of 2.61 billion TRY, with a price-to-book ratio of 1.07 and a price-to-tangible-book ratio of 1.07, indicating a valuation close to its book value. The company’s enterprise value to EBITDA is negative at -15.95, reflecting a loss-making position, while its enterprise value to revenue is 3.03, suggesting a moderate revenue-based valuation. The company’s liquidity position is characterized by a current ratio of 2.55, but its operating cash flow is negative at -283.28 million TRY, and free cash flow is also negative at -393.93 million TRY.

Profitability metrics show significant underperformance. Return on equity is -16.01%, and return on assets is -11.55%, both well below the industry median for construction supplies and fixtures. The company reported a net loss of 391.98 million TRY and an operating loss of 174.83 million TRY, with a gross profit of only 28.88 million TRY. These figures indicate a severe decline in operational efficiency and profitability.

Geographically, Ege Seramik’s revenue is concentrated in Turkey, with no disclosed international segments. The company’s exposure to domestic economic conditions and currency fluctuations is high, as it operates in a local market with limited diversification. No material revenue is attributed to foreign operations, and the company does not report segment-specific revenue breakdowns.

The company’s growth trajectory is negative. Revenue for the latest period is 920.96 million TRY, but there is no indication of growth in the current or next fiscal year. The outlook for the current fiscal year is negative, with no numeric delta provided, and the next fiscal year is also expected to show no improvement. The company’s capital expenditures are modest at -33.41 million TRY, but this is not sufficient to offset the operating and free cash flow deficits.

Risk factors include a medium liquidity risk, as the company has negative net cash after subtracting total debt. The debt-to-equity ratio is 0.12, which is relatively low, but the negative operating and free cash flows raise concerns about the company’s ability to service its 305.88 million TRY in long-term debt. Dilution risk is assessed as low, with no near-term pressure expected, and no dilution sources are currently identified.

Recent events include a significant operating and net loss, with no disclosed material events such as acquisitions, divestitures, or regulatory actions in the latest filings. The company has not issued new shares or raised capital recently, and there are no notable transcripts or earnings calls that indicate a turnaround strategy.

Revenue grew 28.2% year-over-year to 4.5 billion TRY, demonstrating significant top-line expansion despite recent profitability challenges.

Operating income improved 23.4% year-over-year, indicating a positive trend in core operational performance relative to the prior period.

Free cash flow increased 47.1% year-over-year, suggesting an improvement in cash generation capabilities compared to the previous year.

The debt-to-equity ratio of 0.12 is well below the cohort median of 0.29, indicating a relatively conservative leverage position.

Dilution risk is assessed as low, providing some protection to existing shareholders against potential equity value erosion.

Credit risk is flagged as high, raising concerns about the company's ability to meet its financial obligations and service debt.

Liquidity risk is assessed as medium, indicating potential challenges in meeting short-term financial requirements without significant strain.

Cash conversion of 0.72 is below the cohort median of 1.01, suggesting weaker efficiency in converting operating income into cash.

Revenue TRY 4.27B, +302,2% YoY; Operating income +74,0% YoY.

• ▍Revenue TRY 4.27B, +302,2% YoY
• ▍Operating income +74,0% YoY
• ▍Net income −15,6% YoY
• ▍Free cash flow −134,2% YoY
• ▍Net margin 5.2%