Highwood Asset Management Ltd

Highwood Asset Management Ltd has a debt-to-equity ratio of 0.85, indicating a moderate level of leverage, while its current ratio of 0.47 suggests potential liquidity constraints. The company's free cash flow is negative at -20.78 million CAD, and capital expenditure is -25.66 million CAD, reflecting significant investment in operations. The return on equity is -0.53%, and return on assets is -0.2%, indicating poor profitability relative to its equity and asset base.

The company's net income is -544,000 CAD, and operating income is 2.47 million CAD, suggesting that while it generates some operational profit, it is not sufficient to cover all expenses. The company's profitability and returns are below the industry's preferred metrics, as it is not generating positive returns on equity or assets.

Highwood Asset Management Ltd's revenue is concentrated in a single segment, with no disclosed geographic diversification, which could expose the company to regional economic fluctuations. The company's growth trajectory is uncertain, as the outlook for the current fiscal year does not provide specific numeric deltas for revenue growth.

The company faces a medium liquidity risk, as indicated by its current ratio and negative free cash flow. The risk assessment also notes that net cash is negative after subtracting total debt, which could lead to liquidity pressures. The dilution risk is low, with no near-term pressure expected.

Recent events include analyst estimates with a mean price target of 7.00 CAD and a median price target of 7.00 CAD, with three buy recommendations and no strong buy or hold recommendations. No specific filings or transcripts have been disclosed in the provided data.

The company's recent performance and financial health suggest a need for careful monitoring of its liquidity and profitability metrics. The negative net income and low return on equity indicate that the company is not currently generating value for its shareholders.

Analysts project 31.8% upside to a mean price target of $7.00, reflecting a consensus buy recommendation.

The company generated positive free cash flow of $984,000 in FY-3, indicating periods of cash generation capability.

Dilution risk is assessed as low, suggesting limited immediate threat to shareholder equity from share issuance.

Free cash flow deteriorated to negative $14.6 million in FY0, indicating severe cash burn and liquidity pressure.

Long-term debt increased to $105.5 million in FY0, while credit risk is flagged as high by risk indicators.

Net margin of -3.4% falls in the bottom quartile of the cohort, signaling poor profitability relative to peers.

Return on equity of -0.53% ranks in the bottom quartile, highlighting inefficient use of shareholder capital.

Debt-to-equity ratio of 0.85 is significantly higher than the 0.24 cohort median, indicating elevated leverage risk.

Revenue C$25.4M, +20,0% YoY; Operating income +85,4% YoY.

• ▍Revenue C$25.4M, +20,0% YoY
• ▍Operating income +85,4% YoY
• ▍Net income +198,8% YoY
• ▍Free cash flow +166,6% YoY
• ▍Net margin 22.5%

Revenue C$18.3M, −51,8% YoY; Operating income −87,7% YoY.

• ▍Revenue C$18.3M, −51,8% YoY
• ▍Operating income −87,7% YoY
• ▍Net income −98,5% YoY
• ▍Free cash flow −155,6% YoY
• ▍Net margin 1.4%

Revenue C$37.1M, +8,2% YoY; Operating income +27,6% YoY.

• ▍Revenue C$37.1M, +8,2% YoY
• ▍Operating income +27,6% YoY
• ▍Net income +27,8% YoY
• ▍Free cash flow +26,4% YoY
• ▍Net margin 36.1%

Revenue C$21.0M, +31,6% YoY; Operating income +127,3% YoY.

• ▍Revenue C$21.0M, +31,6% YoY
• ▍Operating income +127,3% YoY
• ▍Net income +532,9% YoY
• ▍Free cash flow −24,5% YoY
• ▍Net margin 11.2%

Revenue C$21.2M; Operating income C$5.4M.

• ▍Revenue C$21.2M
• ▍Operating income C$5.4M
• ▍Net margin 9.0%

Revenue C$38.1M; Operating income C$23.8M.

• ▍Revenue C$38.1M
• ▍Operating income C$23.8M
• ▍Net margin 42.3%

Revenue C$34.3M; Operating income C$16.7M.

• ▍Revenue C$34.3M
• ▍Operating income C$16.7M
• ▍Net margin 30.5%

Revenue C$16.0M; Operating income C$2.5M.

• ▍Revenue C$16.0M
• ▍Operating income C$2.5M
• ▍Net margin -3.4%

Revenue C$101.9M, −7,0% YoY; Operating income −17,6% YoY.

• ▍Revenue C$101.9M, −7,0% YoY
• ▍Operating income −17,6% YoY
• ▍Net income −22,3% YoY
• ▍Free cash flow −15,7% YoY
• ▍Net margin 21.3%

Revenue C$109.5M, +166,8% YoY; Operating income −11,0% YoY.

• ▍Revenue C$109.5M, +166,8% YoY
• ▍Operating income −11,0% YoY
• ▍Net income −39,4% YoY
• ▍Free cash flow −136,3% YoY
• ▍Net margin 25.5%

Revenue C$41.0M, +520,1% YoY; Operating income +7 901,2% YoY.

• ▍Revenue C$41.0M, +520,1% YoY
• ▍Operating income +7 901,2% YoY
• ▍Net income +1 954,5% YoY
• ▍Free cash flow +3 425,0% YoY
• ▍Net margin 112.4%