Adhi Karya (Persero) Tbk PT

The company's capital structure is characterized by a high debt-to-equity ratio of 2.78, indicating a significant reliance on debt financing. Its liquidity position is assessed as medium, with a current ratio of 0.85, suggesting potential challenges in meeting short-term obligations. The company's price-to-book ratio of 0.6 and price-to-tangible-book ratio of 0.6 indicate that the market values the company's equity at a discount to its book value. Profitability metrics show a negative return on equity of -1.8854 and a negative return on assets of -0.1876, indicating that the company is not generating returns for its shareholders or effectively utilizing its assets. The operating margin, calculated as operating income divided by revenue, is 2.196%, which is significantly below the industry median for Construction & Engineering firms. The company's revenue is distributed across four segments: Engineering and Construction, Property and Hospitality, Manufacturing, and Investments and Concessions. The Engineering and Construction segment is the largest contributor, with projects including road construction, buildings, industrial engineering, and railroads. The Property and Hospitality segment includes property businesses such as apartments and landed houses, as well as hotels. The company's geographic exposure is primarily within Indonesia, with no significant international operations disclosed. The company's growth trajectory is mixed, with a revenue of 9,666,049,684,420 IDR in the latest period. However, the net income is negative at -5,402,521,013,170 IDR, indicating a significant decline in profitability. The company's free cash flow is negative at -5,542,353,204,870 IDR, which may limit its ability to reinvest in growth opportunities. The company faces several risk factors, including a high debt-to-equity ratio and a negative net cash position after subtracting total debt. The risk of dilution is assessed as low, but the company's liquidity risk is medium, which could impact its ability to meet short-term obligations. The company's capital expenditure of -63,453,161,240 IDR indicates a reduction in investment in long-term assets. Recent events include analyst estimates indicating a strong buy recommendation with a mean price target of 460.00 IDR. The company's current market price of 204.0 IDR is significantly below the analyst price targets, suggesting potential upside for investors.