Matahari Putra Prima Tbk PT

Matahari Putra Prima Tbk PT has a highly leveraged capital structure, with a debt-to-equity ratio of 7.66, indicating a significant reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.75, suggesting that it may struggle to meet short-term obligations without additional financing. Despite this, the company reported positive operating cash flow of 173,010,000,000 IDR and free cash flow of 52,292,000,000 IDR, which provides some buffer for operational needs and debt servicing.

Profitability metrics for the company are weak, with a return on equity of -0.1352 and a return on assets of -0.0079, both of which are negative, indicating that the company is not generating returns for its shareholders or effectively utilizing its assets. These figures are likely below the industry median for the Food Retail & Distribution sector, which typically expects positive returns to sustain operations and growth.

The company's revenue is concentrated in the food and drug retailing segment, with no disclosed geographic diversification in the provided data. This concentration may expose the company to regional economic fluctuations and supply chain disruptions, which could impact its overall performance.

The company's growth trajectory appears to be under pressure, with a net loss of 27,285,000,000 IDR reported in the latest financial snapshot. While the company has positive operating cash flow, the net loss suggests that expenses and debt servicing costs are outpacing revenue growth. The outlook for the current fiscal year is not explicitly provided, but the negative net income indicates a challenging operating environment.

Risk factors for the company include a high debt load, which could lead to increased financial distress if cash flows decline. The risk assessment indicates a low probability of dilution, but the company's capital structure and liquidity position suggest that it may need to raise additional capital in the future to maintain operations. The company's recent financial performance, including a net loss, may also affect its credit rating and access to financing.

Recent events affecting the company include the reported net loss and the high level of debt. The company's financial statements indicate that it has a negative net cash position after subtracting total debt, which could signal financial stress and the need for strategic adjustments to improve liquidity and profitability.

Revenue grew 2.2% annually over four years, demonstrating consistent top-line expansion despite challenging market conditions.

The company generated positive free cash flow of IDR 128.4 billion in the latest period, supporting liquidity needs.

Long-term debt decreased from IDR 2.15 trillion in 2022 to IDR 1.56 trillion in the latest period, reducing leverage.

Operating income turned positive in the latest period at IDR 26.1 billion, indicating improved operational efficiency compared to prior losses.

Dilution risk is assessed as low, suggesting minimal threat to existing shareholder equity value from share issuance.

The debt-to-equity ratio of 7.66 is significantly higher than the cohort median of 0.51, indicating excessive leverage.

Credit risk is flagged as high, reflecting significant concerns regarding the company's ability to meet financial obligations.

Revenue IDR 7.02T, +5,4% YoY; Operating income −208,9% YoY.

• ▍Revenue IDR 7.02T, +5,4% YoY
• ▍Operating income −208,9% YoY
• ▍Net income −27,3% YoY
• ▍Free cash flow −77,8% YoY
• ▍Net margin -6.1%

Revenue IDR 6.66T; Operating income -IDR 68.29B.

• ▍Revenue IDR 6.66T
• ▍Operating income -IDR 68.29B
• ▍Net margin -5.1%