Hotel Fitra International Tbk PT

The company's capital structure is highly leveraged, with a debt-to-equity ratio of 0.74 and long-term debt of IDR 20.8 billion, representing a significant portion of its total liabilities. Despite a market cap of IDR 472.15 billion, the company's price-to-book ratio of 16.77 and price-to-tangible-book ratio of 16.77 suggest a premium valuation relative to its book value. However, the company's liquidity position is weak, with a current ratio of 0.34, indicating that it has insufficient current assets to cover its short-term obligations.

Profitability is severely challenged, with a net loss of IDR 1.83 billion and an operating loss of IDR 1.84 billion in the latest reporting period. The return on equity (ROE) of -6.51% and return on assets (ROA) of -3.17% further underscore the company's inability to generate returns for shareholders or utilize its assets effectively. These metrics fall well below the industry's preferred performance benchmarks, which typically emphasize positive ROE and ROA as indicators of operational efficiency and profitability.

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 and operational risks. The absence of segment-specific revenue data limits the ability to assess the performance of individual business lines or geographic regions.

The company's growth trajectory is negative, with no indication of revenue expansion in the current or next fiscal year. The operating cash flow of -IDR 3.91 billion and free cash flow of -IDR 860 million suggest that the company is not generating sufficient cash to fund operations or reinvest in the business. The capital expenditure of -IDR 289 million indicates ongoing investment, but the negative cash flow implies that these investments are not yet generating returns.

The company faces significant financial risk, with a liquidity risk score of medium and a key flag indicating that net cash is negative after subtracting total debt. The dilution risk is currently low, but the company's weak financial position and negative cash flow could lead to future equity issuances to fund operations or reduce debt. The valuation adjustments applied in the custom valuations suggest that the market is pricing in a high level of risk, as evidenced by the negative EV/EBITDA ratio of -267.95 and the high EV/Revenue ratio of 133.52.

Recent filings and transcripts do not provide additional insight into the company's strategic direction or operational performance. The absence of recent positive developments or restructuring plans raises concerns about the company's ability to turn around its financial performance in the near term.

Revenue grew 12.7% year-over-year to IDR 13.3 billion, demonstrating top-line expansion despite ongoing profitability challenges.

The company achieved a four-year revenue CAGR of 25.4%, indicating strong historical growth momentum in its core operations.

Debt-to-equity ratio of 0.74 is below the cohort median of 0.38, suggesting a relatively conservative leverage position.

Cash conversion ratio of 2.13 exceeds the cohort median of 0.99, highlighting superior cash generation efficiency relative to peers.

Return on equity of -6.5% ranks in the bottom quartile, signaling poor capital efficiency relative to the industry.

High credit risk flags indicate significant financial distress, compounded by medium liquidity risk concerns for the issuer.