Cosma SA
Cosma SA's capital structure shows a debt-to-equity ratio of 0.31, indicating a relatively low level of leverage. The company's liquidity position is characterized by a current ratio of 1.0, suggesting that its current assets are equal to its current liabilities. However, the company's operating cash flow is negative at -1,028,430 PLN, and its free cash flow is also negative at -5,037,500 PLN, indicating cash flow challenges. In terms of profitability, Cosma SA reported a net income of -4,883,590 PLN and an operating income of -4,086,840 PLN, reflecting a loss-making position. The company's return on equity is -0.4381 and return on assets is -0.2073, both significantly below industry norms, indicating poor capital efficiency and asset utilization. The company's revenue is primarily derived from the dietary supplements and hemp products industries, with a focus on consumer health and raw materials. The geographic exposure is concentrated in Poland, with no significant international revenue disclosed. The company's product portfolio includes hemp food, dietary supplements, feed additives, cosmetics, and plant extracts. Cosma SA's growth trajectory is uncertain, with no specific revenue growth projections provided. The company's recent financial performance shows a decline in profitability, with a negative operating income and net income. The capital expenditure of -1,395,410 PLN indicates ongoing investment, but the negative free cash flow suggests that these investments are not yet generating positive returns. The company faces several risk factors, including liquidity risks due to negative operating and free cash flows. The risk assessment indicates a medium liquidity risk and a low dilution risk. The company's negative net cash position after subtracting total debt is a key flag, suggesting potential challenges in meeting short-term obligations. Recent events and filings do not provide specific details on new product launches or strategic initiatives. The company's financial statements highlight the need for improved cash flow management and cost control to address its current financial challenges.
Business. Cosma SA is a Poland-based company primarily engaged in the dietary supplements industry, offering hemp-based products for human and pet consumption under the brands Cosma, Full Spectrum, and Green Paw.
Classification. Cosma SA is classified under the Healthcare economic sector, specifically in the Pharmaceuticals & Medical Research business sector and the Pharmaceuticals industry, with a confidence level of 0.92.
- Cosma SA is experiencing significant financial losses, with a net income of -4,883,590 PLN and an operating income of -4,086,840 PLN.
- The company's liquidity position is weak, with a current ratio of 1.0 and negative operating and free cash flows.
- Cosma SA's return on equity and return on assets are both negative, indicating poor capital efficiency and asset utilization.
- The company's revenue is concentrated in the dietary supplements and hemp products industries, with a focus on consumer health and raw materials.
- The company faces liquidity risks due to its negative cash flow position and needs to improve its cash flow management to address these challenges.
- # RATIONALES
- {
- "margin_outlook_rationale": "The company's margin outlook is negative due to its current financial losses and poor capital efficiency.",
- Net cash is negative after subtracting total debt.