Hayleys Fabric PLC

Hayleys Fabric PLC maintains a debt-to-equity ratio of 1.17, indicating a moderate reliance on debt financing relative to equity. The company's liquidity position is characterized as medium risk, with a current ratio of 1.12, suggesting limited short-term liquidity cushion. Free cash flow is nearly negligible at $9,770, which is significantly lower than the operating cash flow of $18,991,040, indicating that capital expenditures have consumed most of the operating cash.

Profitability metrics show a return on equity (ROE) of 1.72% and a return on assets (ROA) of 0.49%, both of which are below the typical thresholds for healthy returns in the textiles and leather goods industry. The company's operating income of $3,602,850 and net income of $565,170 reflect a relatively narrow margin, with a gross profit of $6,150,450. These figures suggest that the company is operating with limited profitability, which could be a concern in a competitive and cyclical industry.

Hayleys Fabric PLC's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the provided data. This lack of diversification could expose the company to regional economic downturns or supply chain disruptions, which may impact its overall revenue stability.

The company's growth trajectory is modest, with the most recent actual revenue reported at $12,343,878,000 and an EPS of $1.44. While these figures represent the most recent performance, there is no indication of significant year-over-year growth or expansion in the data provided. The absence of a clear growth strategy or capital expenditure plans beyond the $3,846,870 in negative capex suggests a conservative approach to reinvestment.

Risk factors for Hayleys Fabric PLC include a medium liquidity risk and a low dilution risk. The company's net cash position is negative after accounting for total debt, which could limit its ability to respond to short-term financial obligations. However, the low dilution risk indicates that the company is not currently issuing new shares at a rate that would significantly dilute existing shareholders.

Recent events and disclosures do not provide specific details on new product launches, strategic partnerships, or regulatory changes that could impact the company's operations. The absence of recent filings or transcripts suggests a lack of public activity or announcements that could influence investor sentiment or market perception.

Cash conversion of 33.6% ranks as best-in-class, vastly outperforming the 0.98% cohort median for efficiency.

Revenue grew at a 17.2% compound annual rate over four years, indicating strong historical top-line expansion.

The company generated $5.3 million in free cash flow in 2024, showing positive cash generation capability.

Dilution risk is assessed as low, suggesting minimal threat to existing shareholder equity value from share issuance.

Credit risk is flagged as high, signaling significant potential for financial distress or default issues for the company.

Debt-to-equity ratio of 1.17 sits in the bottom quartile, indicating excessive leverage compared to peers.

Revenue declined 6.0% year-over-year in the latest period, marking a reversal of previous growth trends.

Revenue $146.0M, −6,0% YoY; Operating income −21,5% YoY.

• ▍Revenue $146.0M, −6,0% YoY
• ▍Operating income −21,5% YoY
• ▍Net income −10,5% YoY
• ▍Free cash flow −42,4% YoY
• ▍Net margin 4.8%

Revenue $155.3M, −6,8% YoY; Operating income +55,6% YoY.

• ▍Revenue $155.3M, −6,8% YoY
• ▍Operating income +55,6% YoY
• ▍Net income +594,1% YoY
• ▍Free cash flow +286,9% YoY
• ▍Net margin 5.1%

Revenue $166.6M, +10,9% YoY; Operating income +37,8% YoY.

• ▍Revenue $166.6M, +10,9% YoY
• ▍Operating income +37,8% YoY
• ▍Net income −91,1% YoY
• ▍Free cash flow −151,7% YoY
• ▍Net margin 0.7%

Revenue $150.2M, +94,4% YoY; Operating income +79,0% YoY.

• ▍Revenue $150.2M, +94,4% YoY
• ▍Operating income +79,0% YoY
• ▍Net income +231,7% YoY
• ▍Free cash flow +2 621,6% YoY
• ▍Net margin 8.5%

Revenue $77.3M; Operating income $4.7M.

• ▍Revenue $77.3M
• ▍Operating income $4.7M
• ▍Net margin 5.0%