Mundial SA Produtos de Consumo

Mundial's capital structure is highly leveraged, with a debt-to-equity ratio of 2.8, indicating significant reliance on debt financing. The company's liquidity position is weak, as evidenced by a current ratio of 0.75 and negative net cash after subtracting total debt. Free cash flow is negative at -4.32 million BRL, and operating cash flow of 15.3 million BRL is insufficient to cover capital expenditures of 8.78 million BRL.

Profitability metrics are underperforming relative to industry norms. Return on equity is 0.37%, and return on assets is 0.04%, both well below the typical thresholds for the Personal Products industry. Operating income of 36.07 million BRL represents a 15.97% margin, but net income is a mere 564,000 BRL, indicating high operating and financial costs.

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

Growth prospects are muted, with no significant revenue expansion in recent periods. Analyst estimates for revenue and EPS are in line with reported figures, suggesting limited upside. The company's capital expenditure of 8.78 million BRL is modest and does not indicate aggressive expansion.

Risk factors include liquidity constraints and a high debt load. The company's liquidity risk is rated as medium, and while dilution risk is currently low, the high debt-to-equity ratio could necessitate future equity issuance. No recent events or filings indicate material changes in the company's risk profile.

Recent financial filings and transcripts do not highlight any material events or strategic shifts. The company's financial performance remains stable but lacks momentum, with no significant changes in its business model or market position.

Cash conversion of 27.13% ranks as best-in-class compared to the cohort median of 0.97%, demonstrating strong cash generation capabilities.

Revenue grew 10.2% year-over-year to BRL 1.02 billion in FY2007, showing consistent top-line expansion despite recent net losses.

Operating income increased 250% year-over-year to BRL 143.3 million, highlighting significant improvement in core business profitability.

Debt-to-equity ratio of 2.8 places the company in the bottom quartile of its cohort, signaling excessive financial leverage and risk.

The company faces high credit risk according to risk flags, potentially impacting borrowing costs and financial stability.

Net margin of 0.25% is well below the cohort median of 4.86%, indicating poor bottom-line profitability relative to peers.

Free cash flow deteriorated to negative BRL 33.4 million in FY2007, reflecting ongoing cash burn despite operating income growth.

Return on equity of 0.37% is significantly below the cohort median of 3.03%, showing inefficient use of shareholder capital.

Revenue BRL 268.5M; Operating income BRL 38.7M.

• ▍Revenue BRL 268.5M
• ▍Operating income BRL 38.7M
• ▍Net margin -1.0%

Revenue BRL 250.6M; Operating income BRL 31.1M.

• ▍Revenue BRL 250.6M
• ▍Operating income BRL 31.1M
• ▍Net margin 2.1%

Revenue BRL 224.8M; Operating income BRL 27.6M.

• ▍Revenue BRL 224.8M
• ▍Operating income BRL 27.6M
• ▍Net margin 0.3%

Revenue BRL 289.0M, +7,6% YoY; Operating income +54,2% YoY.

• ▍Revenue BRL 289.0M, +7,6% YoY
• ▍Operating income +54,2% YoY
• ▍Net income +93,2% YoY
• ▍Free cash flow +98,9% YoY
• ▍Net margin -0.1%

Revenue BRL 256.3M, +2,3% YoY; Operating income −12,9% YoY.

• ▍Revenue BRL 256.3M, +2,3% YoY
• ▍Operating income −12,9% YoY
• ▍Net income −315,3% YoY
• ▍Free cash flow −2 541,8% YoY
• ▍Net margin -4.4%

Revenue BRL 226.1M, +0,6% YoY; Operating income +2,4% YoY.

• ▍Revenue BRL 226.1M, +0,6% YoY
• ▍Operating income +2,4% YoY
• ▍Net income −1 674,4% YoY
• ▍Free cash flow −3 356,9% YoY
• ▍Net margin -4.4%

Revenue BRL 247.5M, +9,4% YoY; Operating income −21,6% YoY.

• ▍Revenue BRL 247.5M, +9,4% YoY
• ▍Operating income −21,6% YoY
• ▍Net income −216,0% YoY
• ▍Free cash flow −23,9% YoY
• ▍Net margin -0.3%

Revenue BRL 226.1M; Operating income BRL 36.1M.

• ▍Revenue BRL 226.1M
• ▍Operating income BRL 36.1M
• ▍Net margin 0.2%

Revenue BRL 1.02B, +5,0% YoY; Operating income +7,3% YoY.

• ▍Revenue BRL 1.02B, +5,0% YoY
• ▍Operating income +7,3% YoY
• ▍Net income −675,4% YoY
• ▍Free cash flow −137,1% YoY
• ▍Net margin -2.2%

Revenue BRL 970.0M, +16,0% YoY; Operating income +29,0% YoY.

• ▍Revenue BRL 970.0M, +16,0% YoY
• ▍Operating income +29,0% YoY
• ▍Net income +155,9% YoY
• ▍Free cash flow −30,6% YoY
• ▍Net margin 0.4%

Revenue BRL 836.1M, +9,8% YoY; Operating income −86,1% YoY.

• ▍Revenue BRL 836.1M, +9,8% YoY
• ▍Operating income −86,1% YoY
• ▍Net income −100,8% YoY
• ▍Free cash flow −101,2% YoY
• ▍Net margin -0.8%