PT Erajaya Swasembada Tbk

PT Erajaya Swasembada Tbk maintains a capital structure characterized by significant leverage, with long-term debt of IDR 9.4 trillion against total equity of IDR 9.1 trillion, resulting in a debt-to-equity ratio of 1.03. The company holds minimal cash and equivalents of IDR 210.8 billion, leading to a negative net cash position after subtracting total debt. Liquidity is assessed as medium, supported by a current ratio of 1.16, which indicates adequate short-term coverage but limited buffer. The market values the company at a market capitalization of IDR 5.3 trillion, reflecting a price-to-book ratio of 0.58 and an EV/EBITDA of 7.11.

Profitability metrics show a return on equity of 10.73% and a return on assets of 3.4%. The company generated net income of IDR 1.2 trillion on revenue of IDR 76.6 trillion, yielding a net margin of approximately 1.56%. Operating income stands at IDR 2.4 trillion, indicating an operating margin of roughly 3.18%. While specific cohort medians are not provided for direct comparison, the low valuation multiples suggest the market prices in modest growth expectations or higher risk relative to peers.

Revenue concentration and segment details are not explicitly broken down in the available data, but the classification as Specialty Retail implies a focus on consumer-facing goods. Geographic exposure is not detailed in the provided snapshot, limiting the ability to assess regional risk concentration. The company’s activity is broadly categorized under Consumer Discretionary, suggesting sensitivity to consumer spending cycles.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The latest normalized period shows revenue of IDR 76.6 trillion and free cash flow of IDR 1.5 trillion, which is positive despite capital expenditures of IDR 904.6 billion. The positive free cash flow indicates that operating cash flows of IDR 225.2 billion are sufficient to cover capital needs, although the operating cash flow figure appears lower than net income, suggesting working capital adjustments or non-cash items.

Risk assessment highlights medium liquidity risk and low dilution risk. A key flag is the negative net cash position, which increases interest rate sensitivity and refinancing risk. The debt-to-equity ratio of 1.03 is elevated, requiring careful management of debt covenants and interest coverage. Dilution risk is low, with basic and diluted shares outstanding being identical at 15.6 billion shares.

Recent observations indicate strong analyst sentiment, with a mean recommendation of 1.50 (Strong Buy) and a mean price target of IDR 595.00, significantly above the current market price of IDR 338.00. The high price target of IDR 680.00 and low of IDR 500.00 suggest a consensus view of undervaluation. There are no specific filing, news, or transcript observations provided in the input data.

Revenue is projected to grow 17.4% year-over-year to IDR 76.6 trillion in fiscal year 2026.

Free cash flow is expected to surge 23.7% to IDR 1.5 trillion, indicating strong liquidity generation.

Analysts assign a mean price target of IDR 586, implying 48.7% upside from the current market price.

Operating income is forecast to reach IDR 2.4 trillion in 2026, reflecting consistent top-line expansion.

The company faces high credit risk, posing a significant threat to asset quality and future earnings.

Debt-to-equity ratio of 1.03 is in the bottom quartile, signaling elevated financial leverage compared to peers.

Cash conversion of 0.23 is in the bottom quartile, suggesting poor efficiency in turning earnings into cash.

Net income CAGR of 4.3% over four years lags behind the 15.2% revenue growth rate.

Revenue IDR 76.61T, +17,4% YoY; Operating income +14,2% YoY.

• ▍Revenue IDR 76.61T, +17,4% YoY
• ▍Operating income +14,2% YoY
• ▍Net income +15,8% YoY
• ▍Free cash flow +23,7% YoY
• ▍Net margin 1.6%

Revenue IDR 65.28T, +8,6% YoY; Operating income +15,5% YoY.

• ▍Revenue IDR 65.28T, +8,6% YoY
• ▍Operating income +15,5% YoY
• ▍Net income +25,0% YoY
• ▍Free cash flow +199,2% YoY
• ▍Net margin 1.6%

Revenue IDR 60.14T, +21,6% YoY; Operating income +2,9% YoY.

• ▍Revenue IDR 60.14T, +21,6% YoY
• ▍Operating income +2,9% YoY
• ▍Net income −18,4% YoY
• ▍Free cash flow −28,7% YoY
• ▍Net margin 1.4%

Revenue IDR 49.47T, +13,8% YoY; Operating income +8,1% YoY.

• ▍Revenue IDR 49.47T, +13,8% YoY
• ▍Operating income +8,1% YoY
• ▍Net income +0,1% YoY
• ▍Free cash flow −38,1% YoY
• ▍Net margin 2.0%

Revenue IDR 43.47T; Operating income IDR 1.66T.

• ▍Revenue IDR 43.47T
• ▍Operating income IDR 1.66T
• ▍Net margin 2.3%