GMM Grammy PCL

GMM Grammy maintains a market price of 3.06 THB, with a market capitalization of 2,509,046,170.74 THB, and a price-to-earnings ratio of 12.91, which is in line with the industry median. The company's liquidity position is characterized by 698,478,000 THB in cash and equivalents, but its long-term debt of 2,336,078,000 THB results in a debt-to-equity ratio of 1.43, indicating a leveraged capital structure. The current ratio of 0.88 suggests potential short-term liquidity constraints.

Profitability metrics show a return on equity of 11.93% and a return on assets of 3.01%, which are below the industry median for ROE but in line with the median ROA. The company's operating income of 268,180,000 THB and net income of 194,401,000 THB reflect a healthy gross margin of 46.34% (630,317,000 THB / 1,360,214,000 THB), but its operating margin of 19.72% (268,180,000 THB / 1,360,214,000 THB) is slightly below the industry median.

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.

Outlook data indicates a projected revenue growth of 10.0% for the current fiscal year and 8.0% for the next fiscal year. This growth is supported by a recent increase in digital content production and distribution, which has driven higher revenue per user. The company's free cash flow of 126,763,000 THB and operating cash flow of 224,311,000 THB support its capital expenditure of -132,121,000 THB, indicating a net outflow for investment.

Risk factors include a medium liquidity risk due to a current ratio of 0.88 and a debt-to-equity ratio of 1.43. The company has a low dilution risk, with no near-term pressure from share issuance. However, the risk assessment highlights a key flag: net cash is negative after subtracting total debt, which could impact financial flexibility.

Recent events include the filing of the latest annual report, which disclosed a 5.0% increase in digital content revenue and a 3.0% decline in physical media sales. The company also announced a new partnership with a regional streaming platform to expand its digital distribution network.

Revenue grew at an 11.0% compound annual growth rate over the four-year period ending in 2020.

Cash conversion ratio of 1.15 exceeds the 0.73 median for the Entertainment Production cohort.

Debt-to-equity ratio of 1.43 places the company in the bottom quartile of its cohort.

The company faces a high credit risk level according to the provided risk flags.

Revenue THB 1.60B, −13,4% YoY; Operating income −693,1% YoY.

• ▍Revenue THB 1.60B, −13,4% YoY
• ▍Operating income −693,1% YoY
• ▍Net income −38,1% YoY
• ▍Free cash flow −80,3% YoY
• ▍Net margin -3.2%

Revenue THB 1.32B, −8,0% YoY; Operating income −158,7% YoY.

• ▍Revenue THB 1.32B, −8,0% YoY
• ▍Operating income −158,7% YoY
• ▍Net income −430,6% YoY
• ▍Free cash flow −90,8% YoY
• ▍Net margin -8.8%

Revenue THB 1.29B, −11,5% YoY; Operating income −43,8% YoY.

• ▍Revenue THB 1.29B, −11,5% YoY
• ▍Operating income −43,8% YoY
• ▍Net income −109,2% YoY
• ▍Free cash flow +37,6% YoY
• ▍Net margin -0.2%

Revenue THB 1.60B, +17,3% YoY; Operating income −13,3% YoY.

• ▍Revenue THB 1.60B, +17,3% YoY
• ▍Operating income −13,3% YoY
• ▍Net income −46,5% YoY
• ▍Free cash flow −64,9% YoY
• ▍Net margin 6.5%

Revenue THB 1.85B; Operating income -THB 16.3M.

• ▍Revenue THB 1.85B
• ▍Operating income -THB 16.3M
• ▍Net margin -2.0%

Revenue THB 1.44B; Operating income THB 48.2M.

• ▍Revenue THB 1.44B
• ▍Operating income THB 48.2M
• ▍Net margin -1.5%

Revenue THB 1.46B; Operating income THB 49.4M.

• ▍Revenue THB 1.46B
• ▍Operating income THB 49.4M
• ▍Net margin 1.8%

Revenue THB 1.36B; Operating income THB 268.2M.

• ▍Revenue THB 1.36B
• ▍Operating income THB 268.2M
• ▍Net margin 14.3%

Revenue THB 5.82B, −5,7% YoY; Operating income −73,8% YoY.

• ▍Revenue THB 5.82B, −5,7% YoY
• ▍Operating income −73,8% YoY
• ▍Net income −133,5% YoY
• ▍Free cash flow −1 037,0% YoY
• ▍Net margin -1.1%

Revenue THB 6.17B, +4,0% YoY; Operating income +1 064,1% YoY.

• ▍Revenue THB 6.17B, +4,0% YoY
• ▍Operating income +1 064,1% YoY
• ▍Net income +247,5% YoY
• ▍Free cash flow +90,0% YoY
• ▍Net margin 3.2%

Revenue THB 5.93B, +13,6% YoY; Operating income −142,0% YoY.

• ▍Revenue THB 5.93B, +13,6% YoY
• ▍Operating income −142,0% YoY
• ▍Net income −179,7% YoY
• ▍Free cash flow −195,4% YoY
• ▍Net margin -2.2%

Revenue THB 5.22B, +36,1% YoY; Operating income −68,5% YoY.

• ▍Revenue THB 5.22B, +36,1% YoY
• ▍Operating income −68,5% YoY
• ▍Net income −66,5% YoY
• ▍Free cash flow −47,2% YoY
• ▍Net margin 3.2%