Yuh Shan Environmental Engineering Co Ltd

Yuh Shan Environmental Engineering Co Ltd maintains a relatively balanced capital structure, with a debt-to-equity ratio of 0.32, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 2.83, suggesting it has sufficient short-term assets to cover its liabilities. However, the company's net cash position is negative after subtracting total debt, which could pose a liquidity risk if cash flow from operations does not remain stable.

In terms of profitability, the company's return on equity (ROE) is 10.88%, and its return on assets (ROA) is 6.81%. These figures are in line with the industry's preferred metrics, which emphasize operational efficiency and asset utilization. The company's operating margin, calculated as operating income divided by revenue, is 9.41%, which is a key indicator of its ability to generate profit from core operations.

The company's revenue is primarily concentrated in its core environmental services and equipment segment, with no significant geographic diversification reported in the available data. This concentration may expose the company to regional economic fluctuations and regulatory changes specific to its primary market.

Looking ahead, the company's growth trajectory is expected to remain stable, with no significant revenue growth or decline projected in the next fiscal year. The company's capital expenditure of -34,362,000 TWD indicates a reduction in investment in physical assets, which may reflect a strategic shift or a focus on optimizing existing resources.

The company's risk profile is characterized by a medium liquidity risk and a low dilution risk. The risk assessment highlights the potential for liquidity constraints due to the negative net cash position after debt. However, the company's dilution risk is low, as there is no indication of significant share issuance or dilution potential in the near term.

Recent events and filings do not indicate any major operational or financial disruptions. The company's latest actual earnings per share (EPS) is 3.05 TWD, and its actual revenue is 1,239,146,000 TWD, aligning with analyst estimates. These figures suggest that the company is performing in line with market expectations, with no significant deviations in its financial performance.

Debt-to-equity ratio of 0.32 is lower than the 0.43 cohort median, suggesting a conservative capital structure.

Cash conversion ratio of 1.26 exceeds the 0.95 cohort median, reflecting high quality of earnings.

Revenue declined 48.7% year-over-year, signaling a severe contraction in top-line business activity.

Four-year revenue CAGR of -3.9% reflects a persistent long-term decline in sales growth.

Medium liquidity risk flags potential challenges in meeting short-term financial obligations.

Revenue TWD 243.8M, −49,4% YoY; Operating income −59,0% YoY.

• ▍Revenue TWD 243.8M, −49,4% YoY
• ▍Operating income −59,0% YoY
• ▍Net income −57,6% YoY
• ▍Free cash flow −50,4% YoY
• ▍Net margin 8.2%

Revenue TWD 215.8M, −46,0% YoY; Operating income −80,2% YoY.

• ▍Revenue TWD 215.8M, −46,0% YoY
• ▍Operating income −80,2% YoY
• ▍Net income −78,6% YoY
• ▍Free cash flow −40,3% YoY
• ▍Net margin 3.0%

Revenue TWD 341.0M, −11,2% YoY; Operating income −37,9% YoY.

• ▍Revenue TWD 341.0M, −11,2% YoY
• ▍Operating income −37,9% YoY
• ▍Net income −3,3% YoY
• ▍Free cash flow +212,3% YoY
• ▍Net margin 9.1%

Revenue TWD 438.5M, −2,5% YoY; Operating income +10,1% YoY.

• ▍Revenue TWD 438.5M, −2,5% YoY
• ▍Operating income +10,1% YoY
• ▍Net income +16,9% YoY
• ▍Free cash flow +2 125,3% YoY
• ▍Net margin 10.1%

Revenue TWD 1.24B, −27,8% YoY; Operating income −41,5% YoY.

• ▍Revenue TWD 1.24B, −27,8% YoY
• ▍Operating income −41,5% YoY
• ▍Net income −30,8% YoY
• ▍Free cash flow +35,9% YoY
• ▍Net margin 8.2%

Revenue TWD 1.72B, +17,3% YoY; Operating income +48,2% YoY.

• ▍Revenue TWD 1.72B, +17,3% YoY
• ▍Operating income +48,2% YoY
• ▍Net income +54,1% YoY
• ▍Free cash flow +4,7% YoY
• ▍Net margin 8.6%