Elamex SA de CV

Elamex SA de CV has a liquidity position that is relatively stable, with a current ratio of 1.1, indicating that the company has just enough current assets to cover its current liabilities. However, the company's cash and equivalents amount to $2.3 million, which is significantly lower than its long-term debt of $23.5 million, resulting in a negative net cash position. This suggests that the company may need to rely on external financing or asset sales to meet long-term obligations.

The company's profitability is a major concern, as it reported a net loss of $23.7 million and an operating loss of $20.1 million in the latest period. Its return on equity is negative at -74.9%, which is far below the industry median for food processing companies. This indicates that the company is not generating returns for its shareholders and is underperforming relative to its peers.

Elamex SA de CV operates as a single-segment company, with all revenue derived from its food processing activities. There is no geographic diversification disclosed in the available data, and the company's revenue concentration is entirely within one business line. This lack of diversification increases the company's exposure to sector-specific risks, such as supply chain disruptions or changes in consumer demand.

The company's growth trajectory is currently negative, with a net loss and declining operating income. There is no indication of a turnaround in the near term, and the company's capital expenditures of $6.4 million suggest ongoing investment in operations. However, without a corresponding increase in revenue or improvement in margins, these expenditures may not lead to improved profitability.

The risk assessment for Elamex SA de CV highlights a medium liquidity risk due to its negative net cash position and a low dilution risk, as there is no indication of imminent share issuance or dilution. The company's debt-to-equity ratio of 0.74 is relatively moderate, but the negative net income and operating cash flow raise concerns about its ability to service debt in the long term.

There are no recent events or filings disclosed in the available data that would indicate a material change in the company's operations or financial position. The company's financial performance appears to be deteriorating, and without significant operational improvements or external financing, the company may face challenges in maintaining its current operations.

Net income improved significantly by 85.1% year-over-year, indicating a substantial reduction in losses compared to the prior period.

Operating income surged 98.8% year-over-year, suggesting a marked improvement in core operational efficiency and cost management.

Long-term debt decreased to $12.2 million, reflecting a deleveraging trend that reduces financial risk and interest obligations.

Gross profit reached $23.0 million, demonstrating the company's ability to generate positive gross margins despite operating losses.

Dilution risk is assessed as low, providing reassurance to existing shareholders regarding potential equity value erosion.

Liquidity risk is rated as medium, indicating potential challenges in meeting short-term financial obligations or trading constraints.

Revenue $28.0M, +11,6% YoY; Operating income −381,4% YoY.

• ▍Revenue $28.0M, +11,6% YoY
• ▍Operating income −381,4% YoY
• ▍Net income −134,8% YoY
• ▍Net margin -8.1%

Revenue $27.3M, +16,8% YoY; Operating income +159,9% YoY.

• ▍Revenue $27.3M, +16,8% YoY
• ▍Operating income +159,9% YoY
• ▍Net income +577,0% YoY
• ▍Net margin 7.1%

Revenue $29.4M, −22,7% YoY; Operating income +92,6% YoY.

• ▍Revenue $29.4M, −22,7% YoY
• ▍Operating income +92,6% YoY
• ▍Net income +89,7% YoY
• ▍Net margin -8.3%

Revenue $25.1M; Operating income $601.0k.

• ▍Revenue $25.1M
• ▍Operating income $601.0k
• ▍Net margin -3.8%

Revenue $38.0M; Operating income -$20.1M.

• ▍Revenue $38.0M
• ▍Operating income -$20.1M
• ▍Net margin -62.3%

Revenue $134.3M, +1,7% YoY; Operating income +94,0% YoY.

• ▍Revenue $134.3M, +1,7% YoY
• ▍Operating income +94,0% YoY
• ▍Net income +45,5% YoY
• ▍Net margin -4.5%

Revenue $132.0M, −24,4% YoY; Operating income −72,9% YoY.

• ▍Revenue $132.0M, −24,4% YoY
• ▍Operating income −72,9% YoY
• ▍Net income −163,5% YoY
• ▍Net margin -8.4%

Revenue $174.7M; Operating income -$12.4M.

• ▍Revenue $174.7M
• ▍Operating income -$12.4M
• ▍Net margin 10.0%