Abocom Systems Inc

Abocom Systems Inc has a debt-to-equity ratio of 0.7, indicating a moderate reliance on debt financing, and a current ratio of 3.56, suggesting strong short-term liquidity. However, the company's free cash flow is only 3.8 million TWD, and capital expenditures are negative at -22.9 million TWD, indicating a net outflow from operations. The company's return on equity is 0.74%, and return on assets is 0.37%, both of which are below the industry median for communications equipment firms.

The company's profitability is mixed, with a net income of 7.3 million TWD despite an operating loss of -19.9 million TWD. This suggests that non-operating income or gains may be offsetting operational losses. The gross profit margin is 12.8%, which is in line with the industry average, but the operating margin is negative, indicating inefficiencies in cost management or pricing.

Abocom's revenue is concentrated in a single business segment, with no disclosed geographic diversification. The company's financial snapshot does not provide segment-specific revenue breakdowns, but the absence of geographic diversification may expose it to regional economic or regulatory risks.

The company's growth trajectory is uncertain, with no disclosed revenue growth rates or future projections. Analyst estimates for the last actual revenue were 2.4 billion TWD, which is lower than the reported revenue of 3.1 billion TWD, suggesting potential volatility in revenue recognition or reporting.

The company's risk profile includes a medium liquidity risk due to negative net cash after subtracting total debt. The dilution risk is assessed as low, with no near-term pressure from share issuance or dilutive events. However, the company's operating cash flow of 142.7 million TWD is not sufficient to cover its long-term debt of 693.6 million TWD, which could lead to refinancing challenges.

Recent events include a reported operating loss and a net income primarily driven by non-operating gains. The company's 10-K filing and other disclosures do not mention any material events in the last quarter, but the negative operating income and low profitability raise concerns about its long-term sustainability.

Revenue surged 55.6% year-over-year to TWD 1.77 billion, signaling a strong recovery in top-line growth momentum.

Net income jumped 106.3% year-over-year, demonstrating a significant turnaround from previous fiscal year losses.

Cash conversion ratio of 19.43 is best-in-class compared to the 0.76 cohort median, highlighting efficient cash generation.

Free cash flow improved by 101.0% year-over-year, reflecting enhanced operational cash generation capabilities.

Debt-to-equity ratio of 0.7 sits in the bottom quartile versus the 0.22 cohort median, signaling high leverage risk.

The company faces high credit risk and medium liquidity risk, posing significant financial stability concerns for investors.

Return on equity of 0.74% trails the 1.18% cohort median, suggesting suboptimal capital efficiency relative to peers.

Four-year revenue CAGR of -0.5% indicates long-term stagnation despite recent year-over-year growth improvements.

Revenue TWD 273.0M, −24,5% YoY; Operating income −763,2% YoY.

• ▍Revenue TWD 273.0M, −24,5% YoY
• ▍Operating income −763,2% YoY
• ▍Net income −51,5% YoY
• ▍Free cash flow −83,8% YoY
• ▍Net margin -17.2%

Revenue TWD 306.8M, −5,6% YoY; Operating income −30,1% YoY.

• ▍Revenue TWD 306.8M, −5,6% YoY
• ▍Operating income −30,1% YoY
• ▍Net income −428,3% YoY
• ▍Free cash flow −358,5% YoY
• ▍Net margin -30.0%

Revenue TWD 293.6M, −5,6% YoY; Operating income −38,3% YoY.

• ▍Revenue TWD 293.6M, −5,6% YoY
• ▍Operating income −38,3% YoY
• ▍Net income −343,5% YoY
• ▍Free cash flow −367,3% YoY
• ▍Net margin -6.1%

Revenue TWD 1.14B, −18,4% YoY; Operating income −144,9% YoY.

• ▍Revenue TWD 1.14B, −18,4% YoY
• ▍Operating income −144,9% YoY
• ▍Net income −694,4% YoY
• ▍Free cash flow −4 581,4% YoY
• ▍Net margin -17.0%

Revenue TWD 1.39B, −23,6% YoY; Operating income −4 306,0% YoY.

• ▍Revenue TWD 1.39B, −23,6% YoY
• ▍Operating income −4 306,0% YoY
• ▍Net income −53,1% YoY
• ▍Free cash flow +103,4% YoY
• ▍Net margin -1.7%

Revenue TWD 1.82B, +1,1% YoY; Operating income −98,5% YoY.

• ▍Revenue TWD 1.82B, +1,1% YoY
• ▍Operating income −98,5% YoY
• ▍Net income −113,2% YoY
• ▍Free cash flow −254,6% YoY
• ▍Net margin -0.9%

Revenue TWD 1.80B, +2,0% YoY; Operating income +358,7% YoY.

• ▍Revenue TWD 1.80B, +2,0% YoY
• ▍Operating income +358,7% YoY
• ▍Net income +880,1% YoY
• ▍Free cash flow +4 137,7% YoY
• ▍Net margin 6.7%