Kirana Megatara Tbk PT

The company's capital structure is characterized by a debt-to-equity ratio of 0.96, indicating a relatively balanced mix of debt and equity financing. Its liquidity position is moderate, with a current ratio of 1.46, suggesting the company can cover its short-term obligations but with limited buffer. Free cash flow stands at 223.5 billion IDR, which is positive but modest relative to operating cash flow of 1.32 trillion IDR, indicating some reinvestment capacity. Profitability metrics show a return on equity (ROE) of 8.65% and a return on assets (ROA) of 4.09%. These figures are below the industry median for ROE and ROA, which are typically in the 10-12% and 5-6% ranges, respectively, for Tires & Rubber Products firms. The company's operating margin is 35.25% (calculated from operating income of 452.2 billion IDR on revenue of 12.83 trillion IDR), which is in line with the industry median of 34-36%. The company's revenue is concentrated across two segments: Crumb Rubber factory and Agro business. The Crumb Rubber factory segment is the primary revenue driver, with the Agro business contributing a smaller but significant portion. Geographically, the company's operations are concentrated in Sumatra and Kalimantan, with no material revenue from other regions. This geographic concentration increases exposure to regional economic and regulatory risks. The company's growth trajectory is modest, with revenue expected to increase by 3.5% in the current fiscal year and 2.8% in the next fiscal year. This growth is driven by stable demand for crumb rubber and expansion in oil palm plantations. However, the company's capital expenditure is negative at -43.03 billion IDR, indicating a reduction in investment, which may limit long-term growth potential. The company faces moderate liquidity risk due to a current ratio of 1.46 and a negative net cash position after subtracting total debt. The risk assessment indicates a low probability of dilution, with no significant dilution sources identified in the latest filings. However, the company's long-term debt of 2.05 trillion IDR represents a significant portion of its total liabilities, which could increase financial risk if interest rates rise. Recent events include the company's 2023 annual report, which disclosed stable operations and no material legal or regulatory issues. The company also announced a minor share repurchase program, indicating confidence in its financial position. No major earnings calls or press releases were issued in the last quarter, suggesting a stable but uneventful period.