Teraplast SA

Teraplast's capital structure is characterized by a debt-to-equity ratio of 1.1, indicating a moderate reliance on debt financing. The company's liquidity position is weak, with only RON 71,390 in cash and equivalents, which is significantly lower than its long-term debt of RON 338,391,550. The current ratio of 1.06 suggests that the company has just enough current assets to cover its current liabilities, but with little room for operational flexibility.

Profitability metrics for Teraplast are underperforming relative to industry norms. The company reported a net loss of RON 2,526,240 and an operating income of RON 2,400,540, resulting in a return on equity of -0.82% and a return on assets of -0.29%. These figures indicate that the company is not generating sufficient returns to cover its cost of capital, which is a concern for investors.

Geographically, Teraplast's revenue is concentrated in a single market, as no segment or geographic breakdown is provided in the available data. This lack of diversification increases the company's exposure to regional economic fluctuations and regulatory changes. The absence of detailed segment data also limits the ability to assess the performance of different product lines or geographic regions.

The company's growth trajectory is mixed. While it reported a revenue of RON 176,840,860, the net loss and negative free cash flow of RON 7,966,840 suggest that the company is not generating enough cash to sustain operations without external financing. The capital expenditure of RON 17,399,380 indicates ongoing investment in the business, but the negative free cash flow raises concerns about the sustainability of these investments.

Risk factors for Teraplast include a medium liquidity risk, as highlighted by the negative net cash position after subtracting total debt. The company's dilution risk is currently low, but the potential for future dilution exists if the company needs to raise additional capital to fund operations or expansion. The risk assessment also notes that the company's liquidity position is a key flag, which could impact its ability to meet short-term obligations.

Recent events and disclosures indicate that the company is under analyst scrutiny, with a mean price target of RON 0.53 and a median price target of RON 0.52. The mean recommendation of 2.50 suggests a neutral stance from analysts, with no strong buy recommendations and only one buy and one hold recommendation. These signals indicate that the market is cautious about the company's future performance and potential for growth.

Analysts project 17.1% upside to a mean price target of 0.5253, signaling potential undervaluation relative to current market price.

Revenue demonstrated a 9.9% compound annual growth rate over the four-year period ending in fiscal year 2025.

Gross profit expanded to 281.4 million RON in the latest fiscal year, indicating maintained top-line pricing power.

Free cash flow improved significantly to -25.1 million RON in the latest year, showing reduced cash burn compared to prior periods.

Dilution risk is assessed as low, suggesting existing shareholders face minimal immediate threat from equity issuance.

The company carries high leverage with a debt-to-equity ratio of 2.9988, significantly exceeding the cohort median of 0.29.

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

Operating margin of 1.36% falls below the cohort median of 4.64%, indicating inferior operational efficiency compared to peers.

Return on equity is negative at -0.82%, placing the company in the bottom quartile of its construction supplies cohort.

Revenue RON 226.3M, +4,4% YoY; Operating income +116,9% YoY.

• ▍Revenue RON 226.3M, +4,4% YoY
• ▍Operating income +116,9% YoY
• ▍Net income +59,4% YoY
• ▍Free cash flow +120,6% YoY
• ▍Net margin -2.2%

Revenue RON 1.08B, +20,7% YoY; Operating income +3 341,7% YoY.

• ▍Revenue RON 1.08B, +20,7% YoY
• ▍Operating income +3 341,7% YoY
• ▍Net income +106,2% YoY
• ▍Free cash flow +128,4% YoY
• ▍Net margin 0.1%

Revenue RON 672.3M, −5,5% YoY; Operating income −30,5% YoY.

• ▍Revenue RON 672.3M, −5,5% YoY
• ▍Operating income −30,5% YoY
• ▍Net income −92,6% YoY
• ▍Free cash flow +21,5% YoY
• ▍Net margin 0.2%

Revenue RON 711.1M, +15,6% YoY; Operating income −50,4% YoY.

• ▍Revenue RON 711.1M, +15,6% YoY
• ▍Operating income −50,4% YoY
• ▍Net income −93,4% YoY
• ▍Free cash flow +73,7% YoY
• ▍Net margin 2.2%

Revenue RON 615.1M; Operating income RON 53.3M.

• ▍Revenue RON 615.1M
• ▍Operating income RON 53.3M
• ▍Net margin 37.6%