Universal Textile Co Ltd

Universal Textile Co Ltd has a debt-to-equity ratio of 0.98, indicating a relatively balanced capital structure, though its negative net income of TWD -113.2 million and operating loss of TWD -94.1 million suggest financial strain. Free cash flow is negative at TWD -143.8 million, and operating cash flow of TWD 144.8 million is insufficient to cover capital expenditures of TWD -9.5 million, signaling potential liquidity constraints. Profitability metrics are weak, with a return on equity of -5.33% and return on assets of -2.53%, both significantly below the industry median for Textiles & Leather Goods. Gross profit of TWD 87.0 million on revenue of TWD 770.1 million yields a gross margin of 11.3%, which is below the industry average, indicating cost pressures or pricing challenges. The company operates through two segments: Textile and False Twist. Revenue concentration data is not disclosed, but the company serves domestic and overseas markets, including Asia, Europe, and America. No segment-specific revenue breakdown is provided, limiting visibility into geographic or product concentration risks. Growth trajectory is uncertain, with no revenue growth data provided for the current or next fiscal year. The company reported a revenue of TWD 770.1 million in the latest period, but no year-over-year comparison is available. Analyst estimates suggest a revenue of TWD 2.1 billion for the most recent quarter, but this may not reflect full-year performance. Risk factors include medium liquidity risk due to negative free cash flow and a current ratio of 2.05, which is above 1 but insufficient to cover long-term obligations. Dilution risk is low, with no near-term pressure from share issuance or convertible debt. However, the company’s net cash position is negative after subtracting total debt, raising concerns about its ability to fund operations without external financing. Recent events include the 2023 annual report, which disclosed the company’s operating segments and financial performance. No recent earnings call transcripts or regulatory filings were provided to assess management commentary or strategic shifts.