Metrod Holdings Bhd

Metrod Holdings Bhd has a debt-to-equity ratio of 1.85, indicating a capital structure that is moderately leveraged. The company's liquidity position is assessed as medium, with a current ratio of 1.11, suggesting it has just enough current assets to cover its current liabilities. Free cash flow is negative at -8.97 million MYR, and operating cash flow is 50.77 million MYR, highlighting a cash flow imbalance that may require attention.

Profitability metrics show a return on equity (ROE) of 0.52% and a return on assets (ROA) of 0.16%, both of which are below the industry median for electrical components and equipment. These figures suggest that the company is not generating strong returns relative to its equity and asset base, which could be a concern for investors.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and sector-specific risks. The absence of segment or geographic breakdown in the financial data limits the ability to assess the company's risk profile in detail.

Looking ahead, the company's revenue is expected to remain flat or decline slightly in the next fiscal year, with no significant growth drivers identified in the financial data. Capital expenditures are negative at -21.65 million MYR, indicating a reduction in investment in long-term assets, which may affect future growth potential.

The risk assessment indicates a medium liquidity risk and a low dilution risk. However, the company's net cash position is negative after subtracting total debt, which could impact its ability to meet short-term obligations. No dilution sources were identified in the risk assessment, and the dilution potential is assessed as low.

Recent filings and transcripts do not provide additional insights into the company's strategic direction or operational performance. The lack of detailed disclosures in the latest filings suggests limited transparency, which may affect investor confidence.

Revenue grew at a 13.7% CAGR over four years, demonstrating consistent top-line expansion despite margin pressures.

Cash conversion of 17.56% ranks best-in-class among peers, indicating superior efficiency in generating cash from operations.

Capex intensity is above median at -1.63% of revenue, suggesting lower capital requirements relative to industry peers.

Dilution risk is assessed as low, providing some protection to existing shareholders against equity value erosion.

Operating income remained relatively stable year-over-year with only a 1.0% decline, showing resilience in core operations.

Debt-to-equity ratio of 1.85 sits in the bottom quartile, indicating excessive leverage compared to peer median of 0.24.

Credit risk is flagged as high, raising concerns about the company's ability to meet its financial obligations.

Net margin of 0.22% is significantly below the cohort median of 3.76%, reflecting weak pricing power or cost control.

Revenue MYR 1.33B; Operating income MYR 26.5M.

• ▍Revenue MYR 1.33B
• ▍Operating income MYR 26.5M
• ▍Net margin 0.2%

Revenue MYR 5.09B, +16,8% YoY; Operating income +42,3% YoY.

• ▍Revenue MYR 5.09B, +16,8% YoY
• ▍Operating income +42,3% YoY
• ▍Net income +87,3% YoY
• ▍Free cash flow +93,7% YoY
• ▍Net margin 0.4%

Revenue MYR 4.36B, +5,1% YoY; Operating income +11,2% YoY.

• ▍Revenue MYR 4.36B, +5,1% YoY
• ▍Operating income +11,2% YoY
• ▍Net income −30,6% YoY
• ▍Free cash flow −267,2% YoY
• ▍Net margin 0.3%

Revenue MYR 4.15B, +18,2% YoY; Operating income +88,8% YoY.

• ▍Revenue MYR 4.15B, +18,2% YoY
• ▍Operating income +88,8% YoY
• ▍Net income +97,2% YoY
• ▍Free cash flow +7,3% YoY
• ▍Net margin 0.4%

Revenue MYR 3.51B; Operating income MYR 33.8M.

• ▍Revenue MYR 3.51B
• ▍Operating income MYR 33.8M
• ▍Net margin 0.2%