Edom Technology Co Ltd

Edom Technology Co Ltd maintains a capital structure characterized by significant leverage, with a debt-to-equity ratio of 1.98 and total liabilities of TWD 22.37 billion against total equity of TWD 5.59 billion. The company holds TWD 445 million in cash and equivalents, resulting in a negative net cash position after subtracting total debt, which includes TWD 11.05 billion in long-term debt. Liquidity is assessed as medium, supported by a current ratio of 1.35, indicating sufficient short-term assets to cover immediate obligations. The market capitalization stands at TWD 16.19 billion, with a price-to-book ratio of 2.9 and an EV/EBITDA of 15.35, reflecting the market's valuation of the company's asset base and earnings power.

Profitability metrics indicate operational challenges, with a return on equity of -9.29% and a return on assets of -1.86%. The company reported net income of TWD 541 million on revenue of TWD 115.57 billion, yielding a gross profit of TWD 3.94 billion and operating income of TWD 1.84 billion. Despite positive operating income, the negative returns suggest inefficiencies in asset utilization or equity leverage. The gross margin is approximately 3.4%, which is thin for the electronic components industry, highlighting pressure on core profitability.

Revenue concentration and segment details are not explicitly provided in the available data, preventing a detailed analysis of geographic or product mix exposure. The company's activity is broadly classified under Electronic Equipment, Instruments & Components, suggesting exposure to global supply chain dynamics typical of the Information Technology sector. Without specific segment data, the revenue base is treated as a consolidated whole, with no disclosed concentration risks in specific regions or customer groups.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current revenue figure of TWD 115.57 billion serves as the baseline for performance evaluation, but year-over-year trends cannot be established from the provided snapshot. The lack of historical context prevents assessment of revenue momentum or cyclicality within the business cycle.

Risk factors include medium liquidity risk and low dilution risk, with a key flag noting the negative net cash position. The high debt-to-equity ratio of 1.98 amplifies financial risk, particularly in a rising interest rate environment or if cash flows remain volatile. Operating cash flow is negative at TWD -3.51 billion, despite positive free cash flow of TWD 635 million, indicating potential working capital pressures or timing differences in cash collections and payments.

Recent events and observations are not detailed in the available filing, news, or transcript data. The company's risk profile is primarily driven by its balance sheet structure and cash flow dynamics rather than specific disclosed events. The low dilution risk suggests that share count stability is maintained, with basic and diluted shares outstanding both at 269.83 million.

Free cash flow surged 20,802% year-over-year to TWD 772 million, demonstrating significant improvement in cash generation capabilities.

Net income grew at a 268.8% CAGR over four years, indicating strong long-term profitability recovery trends.

Operating income increased to TWD 1.62 billion in FY-4, showing resilience in core operational earnings despite revenue fluctuations.

Capital expenditure relative to revenue is above the 75th percentile of peers, indicating efficient capital deployment strategies.

Net margin of -0.44% places the company in the bottom quartile of its peer cohort.

Return on equity is negative at -9.29%, ranking in the bottom quartile compared to industry peers.

The debt-to-equity ratio of 1.98 is significantly higher than the peer median of 0.39, indicating high leverage.

The company faces high credit risk and medium liquidity risk, posing potential financial stability concerns.

Revenue TWD 28.58B; Operating income TWD 448.7M.

• ▍Revenue TWD 28.58B
• ▍Operating income TWD 448.7M
• ▍Net margin 0.4%

Revenue TWD 33.26B; Operating income TWD 497.4M.

• ▍Revenue TWD 33.26B
• ▍Operating income TWD 497.4M
• ▍Net margin 0.0%

Revenue TWD 30.64B; Operating income TWD 428.9M.

• ▍Revenue TWD 30.64B
• ▍Operating income TWD 428.9M
• ▍Net margin -2.1%

Revenue TWD 24.63B; Operating income TWD 370.9M.

• ▍Revenue TWD 24.63B
• ▍Operating income TWD 370.9M
• ▍Net margin -0.1%

Revenue TWD 113.26B, +5,7% YoY; Operating income +7,5% YoY.

• ▍Revenue TWD 113.26B, +5,7% YoY
• ▍Operating income +7,5% YoY
• ▍Net income −9 335,5% YoY
• ▍Free cash flow −73,9% YoY
• ▍Net margin -0.5%

Revenue TWD 107.20B, −9,7% YoY; Operating income −14,3% YoY.

• ▍Revenue TWD 107.20B, −9,7% YoY
• ▍Operating income −14,3% YoY
• ▍Net income −99,3% YoY
• ▍Free cash flow −12 102,6% YoY
• ▍Net margin 0.0%