Keo PLC

KEO.CY maintains a conservative capital structure with a debt-to-equity ratio of 0.13, significantly below the industry median of 0.45, indicating a low reliance on debt financing. The company holds 11.299 million euros in cash and equivalents, but its long-term debt of 13.444 million euros results in a net cash position of -2.145 million euros, raising liquidity concerns. The current ratio of 2.99 suggests strong short-term liquidity, with current assets comfortably covering current liabilities.

Profitability metrics show KEO.CY generating a return on equity (ROE) of 10.91%, which is above the Brewers industry median of 8.2%, and a return on assets (ROA) of 8.41%, also exceeding the industry median of 6.1%. Gross profit of 26.687 million euros on 75.329 million euros in revenue yields a gross margin of 35.4%, slightly above the industry median of 34.2%. Operating income of 9.293 million euros reflects an operating margin of 12.3%, compared to the industry median of 11.5%.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the latest financials. This lack of segmental or geographic diversification increases exposure to regional economic shifts and regulatory changes.

KEO.CY's revenue growth trajectory is not explicitly provided in the latest data, but the company reported a net income of 10.978 million euros, up from a negative EPS of -0.03 euros in the most recent quarter. The free cash flow of 5.768 million euros indicates the company is generating sufficient cash to fund operations and potentially reinvest in growth. However, capital expenditures of -4.233 million euros suggest a reduction in investment in new assets, which may signal a strategic shift or cost-cutting measures.

Risk factors include a medium liquidity risk due to the net cash deficit and a low dilution risk, as shares outstanding remain unchanged between basic and diluted counts. The risk assessment highlights a key flag: net cash is negative after subtracting total debt, which could constrain the company's ability to fund operations or pursue growth opportunities without external financing.

Recent events include the filing of financial results showing a net income of 10.978 million euros and a negative EPS of -0.03 euros, indicating a recent earnings challenge despite overall profitability. No major regulatory or geopolitical events are disclosed in the latest data, but the Brewers industry is subject to evolving regulations on alcohol content, labeling, and health warnings, which could impact future performance.