Budi Starch & Sweetener Tbk PT

The company's capital structure is characterized by a debt-to-equity ratio of 1.3, indicating a moderate reliance on debt financing. Its liquidity position is assessed as medium, with a current ratio of 1.73, suggesting the company can cover its short-term obligations but with limited surplus. The price-to-book ratio of 0.6 and price-to-tangible-book ratio of 0.6 indicate that the company's market value is below its book value, potentially signaling undervaluation or asset impairment concerns. Profitability metrics show a return on equity (ROE) of 6.87% and a return on assets (ROA) of 2.6%, both below the typical thresholds for high-performing food processing firms. The gross profit margin is 13.93% (442.82 billion IDR gross profit on 3.18 trillion IDR revenue), and the operating margin is 6.93% (220.32 billion IDR operating income on 3.18 trillion IDR revenue), both of which are below the industry median for Food Processing firms. These metrics suggest the company is underperforming in terms of cost control and operational efficiency. The company operates in four segments: Tapioca Starch, Sweeteners, Citric Acid and Other Chemical Products, and Plastic Packaging. Revenue concentration data is not disclosed, but the company's exposure to the food and beverage sector is significant, with tapioca starch and sweeteners being key products. The plastics segment, while smaller, is a strategic diversification into packaging, which is sensitive to raw material price volatility. Growth trajectory is mixed. The company reported a revenue of 3.18 trillion IDR in the latest period, but no year-over-year growth data is provided. Analysts have recorded a last actual revenue of 2.5 trillion IDR, suggesting a potential recent uptick. However, the operating cash flow is negative at -95.31 billion IDR, and capital expenditures are high at -165.57 billion IDR, indicating aggressive investment in expansion or maintenance. The free cash flow of 89.49 billion IDR suggests the company is generating positive cash from operations after capital expenditures, but the negative net cash position raises concerns about liquidity. Risk factors include a medium liquidity risk due to the negative net cash position after subtracting total debt. The dilution risk is assessed as low, with no significant dilution potential in the basic shares outstanding. The company has not disclosed any recent equity issuance or shelf registration that would suggest imminent dilution. However, the high long-term debt of 2.01 trillion IDR and the debt-to-equity ratio of 1.3 indicate a need for careful monitoring of leverage. Recent events include the latest actual EPS of 14.00 IDR and revenue of 2.5 trillion IDR, as reported by analysts. No recent filings or transcripts are disclosed in the input data, so the narrative is based on the latest financial snapshot and analyst estimates. The company's performance appears to be stabilizing, but the negative operating cash flow and high capital expenditures suggest ongoing investment in the business.