Madusari Murni Indah Tbk PT
The company's capital structure is characterized by a low debt-to-equity ratio of 0.01, indicating a conservative leverage approach. The liquidity position is reflected in a current ratio of 7.85, suggesting strong short-term liquidity. The price-to-book ratio of 0.64 and price-to-tangible-book ratio of 0.64 indicate that the company is trading at a discount to its book value [doc:Valuation snapshot]. In terms of profitability, the company's return on equity of 6.1% and return on assets of 4.67% are below the industry benchmarks for Renewable Fuels. The operating margin, calculated as operating income of 130,223,091,000.0 divided by revenue of 1,497,999,187,000.0, is 8.7%, which is also below the median for the industry [doc:Financial snapshot]. The company's revenue is concentrated across two segments: Ethanol and fertilizer, and Carbon dioxide and others. The Ethanol and fertilizer segment is the primary revenue driver, with the Carbon dioxide and others segment contributing to a lesser extent. The geographic exposure is primarily within Indonesia, with no significant international operations disclosed [doc:HA-latest]. The company's growth trajectory is reflected in its revenue of 1,497,999,187,000.0 and net income of 75,455,816,000.0. The outlook for the current fiscal year indicates a positive direction, with the potential for revenue growth. The capital expenditure of -23,893,575,000.0 suggests a reduction in investment, which may impact future growth [doc:Financial snapshot]. The risk assessment indicates a medium liquidity risk and a low dilution risk. The key flag of net cash being negative after subtracting total debt suggests potential liquidity constraints. The dilution potential is low, with no significant dilution sources identified in the recent filings [doc:Risk assessment]. Recent events include the company's financial performance as disclosed in the latest financial snapshot. The operating cash flow of 446,870,557,000.0 and free cash flow of 108,483,380,000.0 indicate strong cash generation capabilities. The company's capital expenditure of -23,893,575,000.0 suggests a reduction in investment, which may be a strategic decision to focus on core operations [doc:Financial snapshot].
Business. PT Madusari Murni Indah Tbk is an Indonesia-based holding company engaged in manufacturing food grade ethanol, liquid carbon dioxide (CO2), and fertilizer, operating through two segments: Ethanol and fertilizer, and Carbon dioxide and others [doc:HA-latest].
Classification. The company is classified under the Renewable Fuels industry within the Renewable Energy business sector, with a classification confidence of 0.92 [doc:verified market data].
- The company has a conservative capital structure with a low debt-to-equity ratio of 0.01.
- The liquidity position is strong, as indicated by a current ratio of 7.85.
- The company's profitability metrics, such as return on equity and return on assets, are below industry benchmarks.
- The company's revenue is concentrated across two segments, with the Ethanol and fertilizer segment being the primary driver.
- The company has a low dilution risk, with no significant dilution sources identified.
- # RATIONALES
- **margin_outlook_rationale**: The company's operating margin of 8.7% is below the industry median, indicating potential for margin improvement through cost optimization.
- **rd_outlook_rationale**: The company's R&D outlook is not explicitly provided, but the focus on renewable fuels suggests ongoing innovation in the ethanol and CO2 production segments.
- Net cash is negative after subtracting total debt.