Jaya Agra Wattie Tbk PT

Jaya Agra Wattie Tbk PT has a highly leveraged capital structure, with a debt-to-equity ratio of 2.47, indicating significant reliance on debt financing. The company's liquidity position is weak, as evidenced by a current ratio of 0.53, which is below 1 and suggests that the company may struggle to meet its short-term obligations. The company's operating cash flow is negative at -94.78 billion IDR, and free cash flow is also negative at -78.61 billion IDR, indicating a lack of cash generation from operations.

Profitability is severely challenged, with a net loss of 85.86 billion IDR and an operating loss of 35.69 billion IDR. The company's return on equity is -8.75%, and return on assets is -2.3%, both of which are negative and indicate poor performance relative to its equity and asset base. These metrics are well below the industry median for the Food Products sector, which typically sees positive returns on equity and assets.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no material geographic diversification reported. This lack of diversification increases exposure to regional economic and regulatory risks. The company's revenue concentration in a single segment and geographic area is a significant risk factor, particularly in a volatile market environment.

The company's growth trajectory is negative, with a net loss in the most recent reporting period. There is no indication of a turnaround in the near term, and the company's capital expenditure of -32.39 billion IDR suggests a reduction in investment in long-term growth. The company's outlook for the current fiscal year is negative, with no clear path to profitability or revenue growth.

The company's risk profile is elevated, with a medium liquidity risk and a negative cash flow position. The risk assessment indicates a low dilution risk, but the company's high debt levels and negative cash flow increase the potential for financial distress. The company has not disclosed any recent equity offerings or dilutive events, but its financial position suggests a potential need for additional capital in the near term.

Recent filings and transcripts indicate that the company is facing operational and financial challenges, including declining sales and rising costs. The company has not provided a detailed explanation for the losses, but the negative operating and net income suggest a combination of declining demand and cost overruns.

Revenue surged 62.7% year-over-year to IDR 1.74 trillion, demonstrating significant top-line growth momentum in the latest fiscal period.

Operating income expanded by 242.4% to IDR 185.6 billion, indicating a substantial improvement in core operational profitability compared to the prior year.

Net losses narrowed by 84.5% year-over-year, reflecting a strong trajectory toward breakeven and improved cost management efficiency.

Free cash flow improved by 48.4% to a negative IDR 86.8 billion, showing a meaningful reduction in cash burn rate.

Cash conversion ratio of 1.1 exceeds the cohort median of 0.89, suggesting superior efficiency in converting operating income to cash.

High credit risk is flagged, compounded by a debt-to-equity ratio of 2.47, which is significantly higher than the cohort median of 0.35.

Medium liquidity risk is present, alongside continued negative free cash flow, raising concerns about short-term financial flexibility and solvency.

Revenue IDR 843.20B; Operating income IDR 37.93B.

• ▍Revenue IDR 843.20B
• ▍Operating income IDR 37.93B
• ▍Net margin -21.0%