Efficient E-Solutions Bhd

Efficient E-Solutions Bhd maintains a strong liquidity position with a current ratio of 4.45, indicating the company can cover its short-term obligations multiple times over. However, the company reported negative free cash flow of -17,850 MYR, suggesting that capital expenditures exceeded operating cash flow in the period. The company's capital structure is largely equity-driven, with total liabilities of 15,276,100 MYR and total equity of 167,410,550 MYR, resulting in a debt-to-equity ratio of 0.0.

In terms of profitability, the company's return on equity (ROE) of 1.67% and return on assets (ROA) of 1.53% are below the typical thresholds for high-performing industrial services firms. These metrics suggest that the company is generating modest returns relative to its equity and asset base, which may indicate inefficiencies or a low-margin business model.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no geographic diversification reported. This lack of diversification could expose the company to regional economic downturns or regulatory changes that affect its primary market.

Looking at the growth trajectory, the company's revenue of 8,749,020 MYR and net income of 2,788,370 MYR indicate a stable but not rapidly growing business. The capital expenditure of -3,592,790 MYR suggests the company is investing in its operations, but the negative free cash flow indicates that these investments are not yet generating positive cash returns.

The risk assessment highlights a medium liquidity risk due to the company's negative net cash position after accounting for total debt. The dilution risk is low, as the number of shares outstanding has not changed between basic and diluted shares, indicating no imminent threat from share issuance. The company's recent financial filings do not disclose any significant events that would alter its current risk profile.

Recent events, as disclosed in the company's financial filings, include the continuation of its core industrial services operations without any material changes in business strategy or significant new projects. The company's latest actual EPS of 0.02 MYR and revenue of 58,751,000 MYR align with its reported financial performance, indicating consistency in its earnings and revenue generation.

Revenue grew at a 42% CAGR over four years, demonstrating strong top-line expansion momentum.

Gross profit reached nearly 20 million MYR in FY2011, reflecting robust underlying profitability before operating expenses.

Operating income swung to a 1.1 million MYR loss, reversing the previous year's positive performance.

Cash conversion ratio of 0.63 is below the 1.15 cohort median, indicating weaker cash realization from earnings.

Revenue MYR 8.7M; Operating income MYR 2.7M.

• ▍Revenue MYR 8.7M
• ▍Operating income MYR 2.7M
• ▍Net margin 31.9%

Revenue MYR 39.2M, +9,9% YoY; Operating income −126,0% YoY.

• ▍Revenue MYR 39.2M, +9,9% YoY
• ▍Operating income −126,0% YoY
• ▍Net income −154,2% YoY
• ▍Free cash flow −97,0% YoY
• ▍Net margin -4.2%

Revenue MYR 35.7M, +78,2% YoY; Operating income +404,5% YoY.

• ▍Revenue MYR 35.7M, +78,2% YoY
• ▍Operating income +404,5% YoY
• ▍Net income +744,2% YoY
• ▍Free cash flow +229,7% YoY
• ▍Net margin 8.6%

Revenue MYR 20.0M, +5,9% YoY; Operating income +67,9% YoY.

• ▍Revenue MYR 20.0M, +5,9% YoY
• ▍Operating income +67,9% YoY
• ▍Net income +61,7% YoY
• ▍Free cash flow +53,5% YoY
• ▍Net margin -2.4%

Revenue MYR 18.9M, +95,8% YoY; Operating income +3,8% YoY.

• ▍Revenue MYR 18.9M, +95,8% YoY
• ▍Operating income +3,8% YoY
• ▍Net income +63,2% YoY
• ▍Free cash flow −23,1% YoY
• ▍Net margin -6.6%

Revenue MYR 9.6M; Operating income -MYR 4.4M.

• ▍Revenue MYR 9.6M
• ▍Operating income -MYR 4.4M
• ▍Net margin -35.0%