Electro Cable Egypt Co SAE

Electro Cable Egypt Co SAE has a market price of 2.95 EGP per share, with a market capitalization of 9.77 billion EGP. The company's price-to-earnings ratio is 18.26, and its price-to-book ratio is 3.22, indicating a premium valuation relative to its book value. The enterprise value to EBITDA ratio is 15.85, and the enterprise value to revenue ratio is 4.86, suggesting moderate valuation multiples in the context of its revenue and profitability.

The company's return on equity is 17.66%, which is relatively strong, and its return on assets is 4.99%, indicating that it is generating a reasonable return on its asset base. However, the company's debt-to-equity ratio is 1.84, which is significantly higher than the median for its industry, suggesting a higher financial leverage and potential risk. The current ratio of 1.28 indicates that the company has sufficient current assets to cover its current liabilities, but not by a large margin.

Electro Cable Egypt Co SAE's revenue is concentrated in a single business segment, with no disclosed geographic diversification. The company's revenue is primarily derived from the sale of electrical cables and related equipment, with no material exposure to other product lines or international markets. This concentration increases the company's vulnerability to sector-specific risks and economic downturns in its primary markets.

The company's revenue for the latest period is 3.07 billion EGP, and its outlook for the current fiscal year is for a modest increase in revenue. The company's capital expenditure for the period was 92.73 million EGP, and its free cash flow was 452.41 million EGP, indicating that the company is generating positive cash flow from operations after capital expenditures. The company's operating cash flow is negative, at -642.22 million EGP, which may be due to timing differences in cash inflows and outflows.

The company's risk assessment indicates a medium liquidity risk and a low dilution risk. The key flag is that the company's net cash is negative after subtracting total debt, which suggests that the company may need to rely on external financing to meet its obligations. The company's dilution risk is low, as there is no indication of significant share issuance or dilution potential in the near term.

Recent events and filings indicate that the company has not disclosed any material changes in its business operations or financial strategy. The company's latest financial statements and disclosures do not indicate any significant legal, regulatory, or operational risks that would impact its financial performance or valuation. The company's management has not provided any forward-looking guidance that would suggest a change in its current business strategy or financial outlook.

Revenue grew at a 42.0% CAGR over four years, showing strong historical top-line expansion.

Return on invested capital of 11.0% indicates efficient capital deployment relative to peers.

Debt-to-equity ratio of 1.84 is in the bottom quartile, signaling high leverage risk.

Cash conversion of -1.2 is in the bottom quartile, indicating poor cash flow quality.

Revenue declined 21.5% year-over-year, marking a significant contraction in sales volume.

Revenue EGP 5.70B, +114,2% YoY; Operating income +201,1% YoY.

• ▍Revenue EGP 5.70B, +114,2% YoY
• ▍Operating income +201,1% YoY
• ▍Net income +141,4% YoY
• ▍Free cash flow +67,1% YoY
• ▍Net margin 9.5%

Revenue EGP 2.66B; Operating income EGP 284.2M.

• ▍Revenue EGP 2.66B
• ▍Operating income EGP 284.2M
• ▍Net margin 8.4%