Everest Textile Co Ltd

Everest Textile's capital structure is characterized by a debt-to-equity ratio of 0.94, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 1.18 and cash and equivalents of 644.54 million TWD. However, net cash is negative after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics reveal a weak performance, with a return on equity of 0.0011 and a return on assets of 0.0005. These figures fall significantly below the industry median for return on equity and return on assets, which are typically in the 5-8% and 3-6% ranges, respectively, for textile manufacturers. The company reported an operating loss of 19.90 million TWD, despite a gross profit of 275.26 million TWD, indicating high operating expenses or cost overruns.

Geographically, Everest Textile's revenue is concentrated in Asia, with a significant portion derived from China and Southeast Asia. The company's exposure to these regions is a strategic advantage given the proximity to raw materials and labor, but it also introduces concentration risk. No specific segment breakdown is available in the latest financial data, but the company's primary operations are in textile manufacturing.

The company's growth trajectory is mixed. While revenue for the latest period was 1.93 billion TWD, the operating loss suggests operational challenges. The outlook for the current fiscal year indicates a potential decline in revenue, with a negative delta expected. The next fiscal year's outlook is similarly cautious, with no significant growth anticipated.

Risk factors include liquidity constraints and the potential for dilution, although the latter is currently assessed as low. The company has not issued new shares recently, and there are no indications of imminent dilution through ATM or shelf offerings. However, the operating loss and negative net cash position could necessitate future financing, which may involve equity dilution.

Recent events include the filing of the latest financial results, which show a decline in operating income and a net profit of 6.76 million TWD. Analyst estimates for the last actual EPS and revenue were 0.55 TWD and 8.85 billion TWD, respectively, indicating a lower-than-expected performance.

Everest Textile generated positive free cash flow of TWD 78.7 million in fiscal 2018, marking a significant improvement from prior deficits.

The company achieved best-in-class cash conversion at 67.73%, significantly outperforming the cohort median of 0.98% in the textiles sector.

Gross profit expanded to TWD 1.12 billion in fiscal 2018, demonstrating improved top-line efficiency despite a decline in total revenue.

Long-term debt decreased to TWD 4.36 billion in fiscal 2018, reflecting a consistent deleveraging trend over the past three years.

Net income losses narrowed substantially to TWD 179 million in fiscal 2018, indicating a strong trajectory toward profitability recovery.

Operating margin of -1.03% places Everest Textile in the bottom quartile compared to the 4.69% median for the textiles cohort.

The company carries a high credit risk flag, signaling potential difficulties in meeting financial obligations or securing favorable financing terms.

Revenue declined by 2.0% year-over-year in the latest period, suggesting weakening demand or market share erosion in the textile sector.

A debt-to-equity ratio of 0.94 exceeds the cohort median of 0.43, indicating higher financial leverage and associated risk exposure.

Revenue TWD 1.76B, −16,8% YoY; Operating income −12,4% YoY.

• ▍Revenue TWD 1.76B, −16,8% YoY
• ▍Operating income −12,4% YoY
• ▍Net income +56,9% YoY
• ▍Free cash flow +81,2% YoY
• ▍Net margin -3.8%

Revenue TWD 1.53B, −12,6% YoY; Operating income +47,4% YoY.

• ▍Revenue TWD 1.53B, −12,6% YoY
• ▍Operating income +47,4% YoY
• ▍Net income −21,0% YoY
• ▍Free cash flow −13,9% YoY
• ▍Net margin -9.8%

Revenue TWD 2.17B, +12,4% YoY; Operating income +329,1% YoY.

• ▍Revenue TWD 2.17B, +12,4% YoY
• ▍Operating income +329,1% YoY
• ▍Net income +409,3% YoY
• ▍Free cash flow +219,9% YoY
• ▍Net margin 1.6%

Revenue TWD 2.46B; Operating income TWD 19.8M.

• ▍Revenue TWD 2.46B
• ▍Operating income TWD 19.8M
• ▍Net margin -0.2%

Revenue TWD 2.12B; Operating income -TWD 59.2M.

• ▍Revenue TWD 2.12B
• ▍Operating income -TWD 59.2M
• ▍Net margin -7.4%

Revenue TWD 1.75B; Operating income -TWD 141.8M.

• ▍Revenue TWD 1.75B
• ▍Operating income -TWD 141.8M
• ▍Net margin -7.1%

Revenue TWD 1.93B; Operating income -TWD 19.9M.

• ▍Revenue TWD 1.93B
• ▍Operating income -TWD 19.9M
• ▍Net margin 0.3%

Revenue TWD 7.49B, −9,4% YoY; Operating income +63,8% YoY.

• ▍Revenue TWD 7.49B, −9,4% YoY
• ▍Operating income +63,8% YoY
• ▍Net income +35,7% YoY
• ▍Free cash flow +175,1% YoY
• ▍Net margin -2.4%

Revenue TWD 8.26B, +5,4% YoY; Operating income +80,5% YoY.

• ▍Revenue TWD 8.26B, +5,4% YoY
• ▍Operating income +80,5% YoY
• ▍Net income +77,0% YoY
• ▍Free cash flow +87,5% YoY
• ▍Net margin -3.4%

Revenue TWD 7.84B, −20,1% YoY; Operating income −193,2% YoY.

• ▍Revenue TWD 7.84B, −20,1% YoY
• ▍Operating income −193,2% YoY
• ▍Net income −5 648,3% YoY
• ▍Free cash flow −451,5% YoY
• ▍Net margin -15.5%