Pan Brothers Tbk PT

The company's capital structure is highly leveraged, with total liabilities of $384.2 million and total equity of -$93.2 million, resulting in a debt-to-equity ratio of -3.61. Liquidity is constrained, as evidenced by a current ratio of 1.02 and negative free cash flow of -$437.1 million. The negative net cash position after subtracting total debt further highlights the company's liquidity challenges.

Profitability is severely underperforming, with a net loss of $436.7 million and an operating loss of $129.9 million. Return on equity is 4.69, but this is misleading due to the negative equity base. Return on assets is -1.50%, indicating poor asset utilization. These metrics fall well below the industry median for profitability and returns, suggesting operational inefficiencies and potential market share erosion.

The company's revenue is concentrated in a single geographic market, with no disclosed segment breakdown, making it difficult to assess diversification. This lack of geographic or product diversification increases exposure to regional economic downturns and shifts in consumer demand.

Growth trajectory is negative, with a reported revenue of $66.7 million. Analyst estimates for the current fiscal year align with the reported revenue, but no forward-looking guidance is available to assess future performance. The absence of capital expenditure and positive operating cash flow further limits the company's ability to invest in growth initiatives.

Risk factors include high liquidity risk due to negative free cash flow and a current ratio near 1.0. The risk assessment indicates a low probability of dilution, but the company's negative equity and high debt levels could necessitate equity issuance in the near term. No recent filings or transcripts are available to provide additional context on the company's strategic direction or risk mitigation efforts.

Pan Brothers generated positive operating income of $95.9 million in fiscal year 2016, marking a significant turnaround from the previous year's operating loss.

The company achieved positive free cash flow of $24.1 million in fiscal year 2016, reversing the substantial negative cash flow recorded in the prior year.

Long-term debt decreased significantly to $86.6 million in fiscal year 2016, down from $336.5 million in fiscal year 2015, improving the balance sheet.

Return on equity of 4.69% ranks in the best-in-class quartile compared to the Apparel & Accessories cohort median of 3.56%.

The debt-to-equity ratio of -3.61 is classified as best-in-class within the Apparel & Accessories cohort, indicating a distinct capital structure.

Revenue declined by 15.7% year-over-year to $273.3 million in fiscal year 2016, indicating a contraction in top-line sales performance.

Operating margin of -1.95% and net margin of -6.54% both fall into the bottom quartile of the Apparel & Accessories cohort.

The company carries a high credit risk flag, suggesting significant concerns regarding its ability to meet financial obligations or maintain creditworthiness.

Cash conversion ratio of 0.03 is below the cohort median of 0.61, indicating inefficient translation of earnings into actual cash.

Revenue $273.3M, −14,6% YoY; Operating income +122,9% YoY.

• ▍Revenue $273.3M, −14,6% YoY
• ▍Operating income +122,9% YoY
• ▍Net income +105,8% YoY
• ▍Free cash flow +105,3% YoY
• ▍Net margin 9.6%

Revenue $319.9M, −45,0% YoY; Operating income −1 782,4% YoY.

• ▍Revenue $319.9M, −45,0% YoY
• ▍Operating income −1 782,4% YoY
• ▍Net income −36 752,2% YoY
• ▍Free cash flow −128 550,9% YoY
• ▍Net margin -140.1%