World Gym Corp

World Gym Corp maintains a high debt-to-equity ratio of 2.98, indicating a capital structure heavily reliant on debt financing. The company's liquidity position is constrained, with a current ratio of 0.41 and only TWD 122.2 million in cash and equivalents, which is significantly lower than its long-term debt of TWD 10.09 billion. This suggests a potential liquidity risk, especially if operating cash flows do not remain stable or grow. The company's price-to-book ratio of 2.64 and price-to-tangible-book ratio of 2.64 indicate that the market values the company at a premium to its book value, but this is not uncommon in the leisure and recreation sector.

Profitability metrics for World Gym Corp show a return on equity (ROE) of 3.96% and a return on assets (ROA) of 0.76%, both of which are below the typical thresholds for strong performance in the leisure and recreation industry. The company's net income of TWD 133.9 million and operating income of TWD 190 million suggest modest profitability, but these figures must be compared to industry benchmarks to assess relative performance. The company's gross profit of TWD 431.4 million and operating margin of 7.7% (calculated from operating income and revenue) indicate that it is managing to maintain some level of profitability despite high operating costs.

World Gym Corp's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no significant geographic diversification reported. This lack of diversification could expose the company to regional economic downturns or regulatory changes that affect the fitness industry in its primary market. The company's revenue of TWD 2.46 billion is derived primarily from its domestic operations, and there is no indication of international expansion in the latest financial data.

The company's growth trajectory is modest, with no significant revenue growth reported in the latest financial period. The operating cash flow of TWD 1.09 billion and free cash flow of TWD 431.5 million suggest that the company is generating positive cash flows, but these figures must be sustained to support future growth initiatives. The capital expenditure of TWD 503.9 million indicates that the company is investing in its operations, but the scale of these investments must be balanced against the company's debt obligations.

Risk factors for World Gym Corp include its high debt load and the potential for liquidity constraints. The company's liquidity risk is rated as medium, and the risk assessment notes that net cash is negative after subtracting total debt. The dilution risk is rated as low, and there are no immediate signs of dilution pressure in the form of recent share issuances or shelf registrations. The company's capital structure and debt levels could become a concern if interest rates rise or if the company's operating cash flows decline.

Recent events for World Gym Corp include the release of its latest financial statements, which show a stable but modest performance. There are no significant recent filings or transcripts that indicate major changes in the company's strategy or operations. The company's price target from analysts is TWD 110.50, with a mean recommendation of 1.50, indicating a generally positive outlook from the investment community.

Analysts project 35.1% upside to a mean target price of 110.5 TWD, reflecting strong buy consensus.

Operating margin of 7.7% exceeds the 6.5% Leisure & Recreation cohort median, indicating superior operational efficiency.

Net income grew 15.1% year-over-year to 409 million TWD, demonstrating accelerating profitability trends.

Cash conversion ratio of 8.12 is best-in-class compared to the 1.04 cohort median.

Return on equity of 3.96% slightly outperforms the 3.89% median for the Leisure & Recreation sector.

Debt-to-equity ratio of 2.98 is in the bottom quartile versus the 0.30 cohort median, signaling high leverage.

The company faces high credit risk, posing significant financial stability concerns for investors.

Revenue CAGR of -1.0% over four years indicates a long-term contraction in top-line growth.

Revenue TWD 2.81B, +9,4% YoY.

• ▍Revenue TWD 2.81B, +9,4% YoY

Revenue TWD 2.88B, +13,3% YoY; Operating income +132,3% YoY.

• ▍Revenue TWD 2.88B, +13,3% YoY
• ▍Operating income +132,3% YoY
• ▍Net income +175,8% YoY
• ▍Free cash flow +3 198,2% YoY
• ▍Net margin 5.8%

Revenue TWD 2.82B, +14,1% YoY; Operating income +65,6% YoY.

• ▍Revenue TWD 2.82B, +14,1% YoY
• ▍Operating income +65,6% YoY
• ▍Net income +79,5% YoY
• ▍Free cash flow +124,9% YoY
• ▍Net margin 4.0%

Revenue TWD 2.71B, +10,0% YoY; Operating income −24,9% YoY.

• ▍Revenue TWD 2.71B, +10,0% YoY
• ▍Operating income −24,9% YoY
• ▍Net income −40,5% YoY
• ▍Free cash flow −113,5% YoY
• ▍Net margin 2.9%

Revenue TWD 2.57B; Operating income TWD 94.3M.

• ▍Revenue TWD 2.57B
• ▍Operating income TWD 94.3M
• ▍Net margin 1.9%

Revenue TWD 2.54B; Operating income TWD 106.6M.

• ▍Revenue TWD 2.54B
• ▍Operating income TWD 106.6M
• ▍Net margin 2.4%

Revenue TWD 2.48B; Operating income TWD 104.7M.

• ▍Revenue TWD 2.48B
• ▍Operating income TWD 104.7M
• ▍Net margin 2.5%

Revenue TWD 2.46B; Operating income TWD 190.0M.

• ▍Revenue TWD 2.46B
• ▍Operating income TWD 190.0M
• ▍Net margin 5.4%

Revenue TWD 10.98B, +11,9% YoY; Operating income +20,8% YoY.

• ▍Revenue TWD 10.98B, +11,9% YoY
• ▍Operating income +20,8% YoY
• ▍Net income +16,3% YoY
• ▍Free cash flow +85,8% YoY
• ▍Net margin 3.7%

Revenue TWD 9.82B, +4,1% YoY; Operating income +4,3% YoY.

• ▍Revenue TWD 9.82B, +4,1% YoY
• ▍Operating income +4,3% YoY
• ▍Net income +0,7% YoY
• ▍Free cash flow −62,1% YoY
• ▍Net margin 3.6%