Zen Corporation Group PCL

Zen Corporation Group PCL maintains a debt-to-equity ratio of 0.81, indicating a moderate reliance on debt financing, while its liquidity position is assessed as medium. The company's cash and equivalents amount to 250.13 million THB, but this is offset by long-term debt of 1.13 billion THB, resulting in a negative net cash position. The current ratio of 0.9 suggests the company may struggle to meet short-term obligations with its current assets, highlighting a potential liquidity constraint.

Profitability metrics reveal a return on equity (ROE) of 1.12% and a return on assets (ROA) of 0.48%, both of which are below the typical thresholds for strong performance in the Restaurants & Bars industry. The operating margin, calculated as operating income of 38.70 million THB on revenue of 1.01 billion THB, is 3.82%, which is relatively low compared to industry benchmarks. This suggests that the company is not efficiently converting revenue into profit, which could be a concern for investors.

The company'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 increases the company's exposure to regional economic fluctuations and operational risks. The absence of detailed segment reporting limits the ability to assess the performance of different parts of the business.

Looking ahead, the company's revenue is projected to grow, but the exact rate is not specified. The capital expenditure of -45.96 million THB indicates a reduction in investment in physical assets, which may signal a strategic shift or financial constraints. The company's growth trajectory is further complicated by its low profitability and liquidity challenges, which could hinder its ability to expand or invest in new opportunities.

Risk factors include a medium liquidity risk due to the current ratio and negative net cash position, as well as a low dilution risk. The company's risk assessment does not indicate any immediate plans for share dilution, which is a positive sign for existing shareholders. However, the company's financial health is closely tied to its ability to improve profitability and manage its debt effectively.

Recent events, such as analyst estimates, suggest a cautious outlook with a mean price target of 5.80 THB and a median price target of 5.80 THB. The mean recommendation of 3.00 indicates a neutral stance from analysts, with no strong buy or buy ratings. This reflects the market's uncertainty about the company's future performance and its ability to overcome current financial challenges.

Zen Corporation generates best-in-class cash conversion of 5.44, significantly outperforming the 1.67 median for the Restaurants & Bars cohort.

Operating margin of 3.82% exceeds the 3.53% cohort median, indicating superior operational efficiency relative to 218 peer companies.

Analysts project 8.4% upside to a mean price target of 5.8 THB, suggesting modest valuation improvement potential.

Free cash flow reached 322 million THB in FY2026, demonstrating the company's ability to generate positive cash despite profit declines.

Capital expenditure intensity of -4.53% is slightly better than the -4.58% cohort median, reflecting efficient capital management.

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

Return on equity of 1.12% lags the 3.88% cohort median, reflecting poor capital efficiency compared to 217 peers.

Net margin of 1.54% falls below the 2.39% cohort median, highlighting weaker bottom-line performance than industry competitors.

Revenue THB 977.3M, −5,0% YoY; Operating income −3,7% YoY.

• ▍Revenue THB 977.3M, −5,0% YoY
• ▍Operating income −3,7% YoY
• ▍Net income −37,7% YoY
• ▍Free cash flow −8,2% YoY
• ▍Net margin 1.1%

Revenue THB 960.4M, −5,0% YoY; Operating income −32,2% YoY.

• ▍Revenue THB 960.4M, −5,0% YoY
• ▍Operating income −32,2% YoY
• ▍Net income −50,4% YoY
• ▍Free cash flow −19,6% YoY
• ▍Net margin 1.2%

Revenue THB 1.01B, −0,2% YoY; Operating income +107,5% YoY.

• ▍Revenue THB 1.01B, −0,2% YoY
• ▍Operating income +107,5% YoY
• ▍Net income +1 719,1% YoY
• ▍Free cash flow +15,6% YoY
• ▍Net margin 1.1%

Revenue THB 1.00B, −1,4% YoY; Operating income +9,9% YoY.

• ▍Revenue THB 1.00B, −1,4% YoY
• ▍Operating income +9,9% YoY
• ▍Net income −18,5% YoY
• ▍Free cash flow +19,3% YoY
• ▍Net margin 1.3%

Revenue THB 3.95B, −2,9% YoY; Operating income +2,6% YoY.

• ▍Revenue THB 3.95B, −2,9% YoY
• ▍Operating income +2,6% YoY
• ▍Net income −19,4% YoY
• ▍Free cash flow +14,2% YoY
• ▍Net margin 1.2%

Revenue THB 4.07B, +3,9% YoY; Operating income −41,6% YoY.

• ▍Revenue THB 4.07B, +3,9% YoY
• ▍Operating income −41,6% YoY
• ▍Net income −63,9% YoY
• ▍Free cash flow +28,9% YoY
• ▍Net margin 1.4%

Revenue THB 3.91B, +15,7% YoY; Operating income +3,3% YoY.

• ▍Revenue THB 3.91B, +15,7% YoY
• ▍Operating income +3,3% YoY
• ▍Net income +2,4% YoY
• ▍Free cash flow −23,8% YoY
• ▍Net margin 4.0%

Revenue THB 3.38B, +53,2% YoY; Operating income +438,4% YoY.

• ▍Revenue THB 3.38B, +53,2% YoY
• ▍Operating income +438,4% YoY
• ▍Net income +268,1% YoY
• ▍Free cash flow +30,9% YoY
• ▍Net margin 4.5%