TOL Gases Ltd

TOL Gases Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.34, indicating limited leverage relative to shareholder equity. The balance sheet shows total assets of 53.7 billion TZS against total liabilities of 20.1 billion TZS, resulting in total equity of 33.6 billion TZS. However, liquidity is constrained, evidenced by a current ratio of 0.69, which suggests short-term obligations exceed current assets. The company holds long-term debt of 11.3 billion TZS, and while it generates positive operating cash flow of 8.5 billion TZS, the net cash position is negative after accounting for total debt. Free cash flow stands at 6.4 billion TZS, derived from operating cash flow less capital expenditures of 3.1 billion TZS.

Profitability metrics indicate modest returns on capital. Return on equity is 6.78%, and return on assets is 4.24%. The company reported net income of 6.3 billion TZS on revenue of 32.1 billion TZS, yielding a net margin of approximately 19.5%. Gross profit was 13.2 billion TZS, and operating income was 8.0 billion TZS, reflecting a gross margin of roughly 41.1% and an operating margin of 24.9%. Without cohort median data for direct comparison, these margins appear stable for a specialized industrial gas producer, though the low ROE suggests room for improvement in capital efficiency.

Segment and geographic revenue breakdowns are not disclosed in the available data, preventing analysis of revenue concentration or regional exposure. The company’s activity is broadly classified as unclassified within the chemicals industry, limiting specific insights into product mix or customer concentration.

Growth trajectory analysis is limited by the absence of historical period data. The latest financial snapshot shows revenue of 32.1 billion TZS, but without prior year or quarterly trends, year-over-year growth rates cannot be calculated. Analyst estimates indicate a last actual revenue of 9.6 billion TZS and EPS of 25.58 TZS, which may reflect a different reporting period or partial year data, highlighting a discrepancy that requires further clarification.

Risk assessment identifies medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, reinforcing the liquidity concerns highlighted by the current ratio. The low dilution risk is supported by the fact that basic and diluted shares outstanding are identical at 57.5 million shares, indicating no significant options or convertible securities currently impacting share count.

Recent observations include analyst estimates for EPS and revenue, but no specific filing, news, or transcript events are detailed in the available data. The company’s IR observations provide a snapshot of market expectations, with actual EPS reported at 25.58 TZS.

Cash conversion of 3.72 is best-in-class, vastly outperforming the 1.22 cohort median.

Free cash flow surged 98% year-over-year to TZS 6.4 billion, reversing prior deficits.

Long-term debt decreased to TZS 11.3 billion, down from TZS 19.7 billion in the prior year.

Medium liquidity risk flags potential challenges in meeting short-term financial obligations.

Revenue TZS 32.06B, +6,1% YoY; Operating income +26,6% YoY.

• ▍Revenue TZS 32.06B, +6,1% YoY
• ▍Operating income +26,6% YoY
• ▍Net income +203,1% YoY
• ▍Free cash flow +408,6% YoY
• ▍Net margin 19.5%