Impact Coatings AB (publ)

Impact Coatings operates with a current ratio of 2.7, indicating a moderate liquidity position, though its negative operating and free cash flows of -39.8 million SEK and -45.7 million SEK, respectively, suggest ongoing cash flow challenges. The company's debt-to-equity ratio of 0.18 reflects a relatively conservative capital structure, with long-term debt of 27.5 million SEK against total equity of 154.5 million SEK. Profitability metrics are sharply negative, with a return on equity of -29.71% and a return on assets of -22.28%, both well below industry norms for industrial machinery firms. The company reported a net loss of 45.9 million SEK and an operating loss of 45.2 million SEK in the latest period. These figures indicate a significant underperformance relative to the industry's preferred metrics of ROIC and EBITDA margins. The company's revenue is concentrated in undisclosed segments, with no geographic breakdown provided in the latest financials. However, the industrial coatings market is typically dominated by regional demand in Europe and North America, where Impact Coatings is likely to have a presence given its Swedish listing and industrial focus. Looking ahead, the company is projected to see a significant revenue increase, with analysts estimating 101 million SEK in the next reporting period, a 113% increase from the 47.3 million SEK reported in the latest period. However, this growth is expected to come alongside continued losses, as the mean EBIT estimate is -40 million SEK, and the mean EPS estimate is -0.39 SEK. Risk factors include liquidity concerns, as the company has negative net cash after subtracting total debt. The risk assessment flags this as a medium liquidity risk, with a low dilution risk due to no near-term share issuance pressure. The company has not disclosed any recent capital raising or dilutive events in the latest filings. Recent events include the publication of the latest financial results, which show a significant decline in profitability and cash flow. The company has not disclosed any major strategic shifts or new product launches in the latest available data. Analysts remain bearish, with the last actual EPS of -0.52 SEK undershooting the mean estimate of -0.39 SEK.