TSR Capital Bhd

TSR Capital Bhd maintains a relatively conservative capital structure, with a debt-to-equity ratio of 0.2, indicating a low reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 2.0, suggesting it can cover its short-term obligations but with limited excess capacity. However, the risk assessment notes that net cash is negative after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics show a return on equity (ROE) of 1.01% and a return on assets (ROA) of 0.64%, both of which are below the industry median for construction and engineering firms. This suggests that the company is underperforming in terms of capital efficiency and asset utilization. Gross profit margin stands at 20.0%, while operating margin is 14.5%, both of which are in line with the industry average, but the net profit margin of 10.8% is slightly below the median.

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 regulatory changes. The absence of segment-specific data limits the ability to assess the performance of individual business lines or geographic regions.

Looking ahead, the company's growth trajectory is uncertain. The most recent actual revenue of 280.344 million MYR represents a decline from the prior year's 137.25 million MYR, indicating a potential contraction in operations. Analysts have not provided forward-looking revenue estimates, and the company has not disclosed any major projects or contracts that could drive future growth.

Risk factors include the company's liquidity position, as noted by the negative net cash after debt. Additionally, the risk assessment indicates a low probability of dilution, with no recent share issuance or shelf registration activity reported. However, the company's capital expenditure of -548,000 MYR suggests a reduction in investment, which could impact long-term growth.

Recent events include the filing of the latest financial results, which show a net income of 1.48 million MYR and an operating income of 1.994 million MYR. The company has not disclosed any material legal or regulatory proceedings, but the absence of recent earnings call transcripts or investor presentations limits visibility into management's strategic direction.

Revenue surged 62.1% year-over-year to MYR 123.7 million in fiscal 2009, demonstrating strong top-line growth momentum.

Cash conversion ratio of 4.62 is best-in-class compared to the cohort median of 0.66, reflecting high earnings quality.

Debt-to-equity ratio of 0.2 is lower than the cohort median of 0.29, suggesting a conservative and stable capital structure.

Return on equity of 1.0% is well below the cohort median of 4.8%, indicating inefficient use of shareholder capital.

The company faces high credit risk, which could impair financial stability and increase the cost of borrowing.

Medium liquidity risk suggests potential challenges in meeting short-term obligations without significant asset liquidation.

Revenue MYR 39.2M, +18,5% YoY; Operating income +86,9% YoY.

• ▍Revenue MYR 39.2M, +18,5% YoY
• ▍Operating income +86,9% YoY
• ▍Net income +7,0% YoY
• ▍Free cash flow +358,5% YoY
• ▍Net margin 2.8%

Revenue MYR 25.1M, +82,7% YoY; Operating income −42,1% YoY.

• ▍Revenue MYR 25.1M, +82,7% YoY
• ▍Operating income −42,1% YoY
• ▍Net income −47,4% YoY
• ▍Free cash flow −50,4% YoY
• ▍Net margin 3.1%

Revenue MYR 38.8M; Operating income MYR 6.3M.

• ▍Revenue MYR 38.8M
• ▍Operating income MYR 6.3M
• ▍Net margin 1.1%

Revenue MYR 20.7M; Operating income MYR 1.2M.

• ▍Revenue MYR 20.7M
• ▍Operating income MYR 1.2M
• ▍Net margin 3.9%

Revenue MYR 33.0M; Operating income MYR 1.0M.

• ▍Revenue MYR 33.0M
• ▍Operating income MYR 1.0M
• ▍Net margin 3.1%

Revenue MYR 13.7M; Operating income MYR 2.0M.

• ▍Revenue MYR 13.7M
• ▍Operating income MYR 2.0M
• ▍Net margin 10.8%

Revenue MYR 123.7M, +62,1% YoY; Operating income −12,3% YoY.

• ▍Revenue MYR 123.7M, +62,1% YoY
• ▍Operating income −12,3% YoY
• ▍Net income −71,5% YoY
• ▍Free cash flow −41,1% YoY
• ▍Net margin 2.5%

Revenue MYR 76.3M, +43,9% YoY; Operating income +153,2% YoY.

• ▍Revenue MYR 76.3M, +43,9% YoY
• ▍Operating income +153,2% YoY
• ▍Net income +696,1% YoY
• ▍Free cash flow +325,1% YoY
• ▍Net margin 14.3%

Revenue MYR 53.0M, +21,4% YoY; Operating income +268,2% YoY.

• ▍Revenue MYR 53.0M, +21,4% YoY
• ▍Operating income +268,2% YoY
• ▍Net income +146,8% YoY
• ▍Free cash flow +418,7% YoY
• ▍Net margin 2.6%

Revenue MYR 43.7M, −38,2% YoY; Operating income +88,7% YoY.

• ▍Revenue MYR 43.7M, −38,2% YoY
• ▍Operating income +88,7% YoY
• ▍Net income +92,2% YoY
• ▍Free cash flow +97,4% YoY
• ▍Net margin -6.7%

Revenue MYR 70.7M; Operating income -MYR 30.8M.

• ▍Revenue MYR 70.7M
• ▍Operating income -MYR 30.8M
• ▍Net margin -53.1%