Sucro Ltd

Sucro Ltd has a debt-to-equity ratio of 1.64, indicating a relatively high level of leverage compared to its equity base. The company's liquidity position is characterized as medium, with a current ratio of 1.43, suggesting it has sufficient short-term assets to cover its short-term liabilities, but not with a large margin of safety. The company's cash and equivalents amount to $3,074,000, which is significantly lower than its long-term debt of $265,445,000, resulting in a negative net cash position after subtracting total debt.

In terms of profitability, Sucro Ltd reports a return on equity (ROE) of 12.05% and a return on assets (ROA) of 3.7%. These figures suggest that the company is generating a moderate return on its equity and a relatively low return on its total assets. The company's operating income of $29,579,000 and net income of $19,471,000 indicate a healthy level of profitability, but the ROA suggests that the company may not be utilizing its assets as efficiently as it could be.

The company's revenue is concentrated in a single business segment, as no segmental breakdown is provided in the available data. This lack of diversification could expose the company to higher risk if demand for its primary product line fluctuates. There is no geographic breakdown provided, but the company's operations are likely concentrated in a single region, which could increase its exposure to local economic conditions.

Looking at the company's growth trajectory, there is no specific outlook provided for the current or next fiscal year. However, the company's capital expenditure of -$9,344,000 suggests that it is not investing in new projects or expanding its operations at the moment. The company's operating cash flow of $20,921,000 and free cash flow of $11,906,000 indicate that it has sufficient cash flow to maintain operations and potentially fund future growth.

The company's risk assessment indicates a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt highlights the company's reliance on debt financing and the potential for increased financial distress if it is unable to service its debt obligations. The company's dilution risk is low, suggesting that there is little likelihood of a significant increase in the number of shares outstanding in the near term.

Recent events, such as analyst estimates, indicate that the last actual EPS was $1.16 and the last actual revenue was $670,404,000. These figures provide a snapshot of the company's recent performance but do not offer insight into future expectations.

Sucro generated $669 million in FY0 revenue, representing a 31.7% year-over-year increase from the prior fiscal period.

Cash conversion ratio of 1.07 exceeds the cohort median of 0.98, suggesting effective translation of earnings into cash.

Debt-to-equity ratio of 1.64 is in the bottom quartile of the cohort, signaling significantly higher financial leverage risk.

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

Long-term debt increased to $356 million in FY0, up from $137 million four years prior, raising solvency concerns.

Revenue CAGR was negative 0.5% over the four-year span ending FY0, showing lack of long-term top-line growth.

Revenue $132.9M, −22,8% YoY; Operating income +30,4% YoY.

• ▍Revenue $132.9M, −22,8% YoY
• ▍Operating income +30,4% YoY
• ▍Net income +115,4% YoY
• ▍Free cash flow +137,5% YoY
• ▍Net margin 11.8%

Revenue $231.4M, +68,0% YoY; Operating income −30,5% YoY.

• ▍Revenue $231.4M, +68,0% YoY
• ▍Operating income −30,5% YoY
• ▍Net income −52,8% YoY
• ▍Free cash flow −21,1% YoY
• ▍Net margin 0.8%

Revenue $155.2M, −15,8% YoY; Operating income −29,8% YoY.

• ▍Revenue $155.2M, −15,8% YoY
• ▍Operating income −29,8% YoY
• ▍Net income −38,6% YoY
• ▍Free cash flow −39,7% YoY
• ▍Net margin 7.7%

Revenue $160.5M; Operating income -$1.8M.

• ▍Revenue $160.5M
• ▍Operating income -$1.8M
• ▍Net margin -4.5%

Revenue $668.9M, +2,2% YoY; Operating income +5,7% YoY.

• ▍Revenue $668.9M, +2,2% YoY
• ▍Operating income +5,7% YoY
• ▍Net income +73,3% YoY
• ▍Free cash flow +111,4% YoY
• ▍Net margin 6.1%