Taurus Armas SA

Taurus Armas maintains a debt-to-equity ratio of 0.47, indicating a relatively conservative capital structure with a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 1.45, suggesting it can cover short-term obligations but with limited excess capacity. Free cash flow is reported at 5.87 million BRL, which is significantly lower than operating cash flow of 99.41 million BRL, indicating capital expenditures are consuming a portion of operating cash.

Profitability metrics show a return on equity of 1.68% and a return on assets of 0.87%, both of which are below the industry median for Aerospace & Defense firms. This suggests Taurus Armas is underperforming in terms of capital efficiency and asset utilization compared to its peers. Gross profit of 145.41 million BRL represents 32.4% of revenue, which is in line with industry norms, but operating income of 55.46 million BRL (12.3% of revenue) indicates higher operating expenses relative to revenue.

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 and regulatory risks, particularly in Brazil, where the company is headquartered. No material international revenue is reported, and the company does not disclose segment-specific performance metrics.

Looking ahead, Taurus Armas is projected to maintain a stable revenue trajectory, with no significant growth or contraction expected in the next fiscal year. Capital expenditures are expected to remain negative, indicating continued investment in operational capacity. The company's operating cash flow is expected to remain positive, supporting its liquidity position.

The risk assessment highlights a key flag: net cash is negative after subtracting total debt, indicating the company is operating with a net debt position. This could limit its ability to respond to unexpected financial stressors. The dilution risk is assessed as low, with no near-term pressure from share issuance or convertible debt. No recent events, such as regulatory filings or earnings transcripts, have been disclosed that would materially impact the company's risk profile.

Taurus Armas has not disclosed any recent earnings calls, regulatory filings, or press releases that would provide insight into its strategic direction or operational performance. The absence of recent public disclosures limits visibility into the company's near-term plans and risk exposures.

Cash conversion ratio of 5.25 is best-in-class compared to the 0.95 cohort median, demonstrating strong cash generation.

Free cash flow turned positive to BRL 495.8 million in FY-4, reversing previous years of negative cash flow.

Revenue grew from BRL 1.46 billion in FY0 to BRL 2.74 billion in FY-4, showing long-term top-line expansion.

Dilution risk is assessed as low, suggesting minimal threat to existing shareholder equity value from share issuance.

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

Liquidity risk is rated medium, suggesting potential challenges in meeting short-term financial obligations.

Revenue BRL 2.74B; Operating income BRL 973.6M.

• ▍Revenue BRL 2.74B
• ▍Operating income BRL 973.6M
• ▍Net margin 23.2%