Hepsor AS

Hepsor AS exhibits a capital structure with a debt-to-equity ratio of 3.04, indicating a high reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 2.15, suggesting it can cover short-term obligations but with limited buffer. The price-to-book ratio of 1.14 implies that the market values the company slightly above its book value, while the price-to-tangible-book ratio is identical, indicating no premium for intangible assets.

Profitability metrics are concerning, with a return on equity of -3.12% and a return on assets of -0.66%, both significantly below industry norms. The company reported a net loss of EUR 647,000 and an operating loss of EUR 292,000, reflecting operational inefficiencies and cost overruns. Gross profit of EUR 340,000 on revenue of EUR 5,151,000 suggests a gross margin of approximately 6.6%, which is below the industry median for construction and engineering firms.

Geographically, Hepsor AS's revenue is concentrated in a single region, with no disclosed diversification across multiple markets. The company operates as a single business segment, with no material diversification across product lines or services. This lack of diversification increases exposure to regional economic downturns and regulatory changes.

The company's growth trajectory is negative, with a net loss in the most recent fiscal year and no disclosed plans for future expansion or market entry. Historical revenue data shows no consistent growth pattern, and the outlook for the next fiscal year remains uncertain. Capital expenditures are minimal, with only EUR 8,000 spent in the latest period, indicating a lack of investment in long-term growth.

Risk factors include a negative net cash position, with operating cash flow of EUR -6,748,000 and free cash flow of EUR -514,000, signaling liquidity constraints. The company has a low dilution potential, with no recent share issuance or shelf registration activity reported. No material events were disclosed in recent filings or transcripts, and the company has not issued any press releases or investor updates in the past quarter.

Revenue grew at a 24% CAGR over four years, demonstrating strong historical top-line expansion for the company.

Cash conversion of 10.43 ranks best-in-class among 827 construction peers, indicating superior operational efficiency.

Capex to revenue ratio of -0.0016 is above the 75th percentile, suggesting low capital intensity relative to peers.

Dilution risk is assessed as low, providing some protection against equity value erosion from share issuance.

Debt-to-equity ratio of 3.04 is in the bottom quartile, indicating excessive leverage compared to peers.

Credit risk is flagged as high, suggesting significant potential for default or financial distress.