Elsoft Research Bhd

Elsoft Research Bhd maintains a strong liquidity position, with a current ratio of 22.43, indicating a significant ability to cover short-term liabilities with current assets. The company has no long-term debt, and its debt-to-equity ratio is 0.0, reflecting a conservative capital structure with no leverage. Despite a negative operating cash flow of -1.818 million MYR, the company generates positive free cash flow of 1.507 million MYR, suggesting it can fund operations and potentially return value to shareholders.

In terms of profitability, Elsoft Research Bhd reports a return on equity (ROE) of 1.04% and a return on assets (ROA) of 0.99%. These figures are below the typical thresholds for high-performing technology firms, indicating that the company is not generating strong returns relative to its equity and asset base. The operating margin is 38.97% (calculated from operating income of 1.786 million MYR on revenue of 4.581 million MYR), which is relatively high but must be compared to industry benchmarks to assess competitiveness.

The company's revenue is concentrated in a single business segment, as disclosed in its financials, with no geographic diversification provided in the available data. This lack of segment and geographic detail limits the ability to assess exposure to regional or product-specific risks. The absence of disclosed revenue by segment or region suggests a need for further transparency to evaluate the company's strategic positioning.

Looking ahead, the company's growth trajectory is not clearly defined in the available data. Analysts have assigned a mean price target of 0.27 MYR, with a single "hold" recommendation and no "buy" or "strong buy" ratings. This suggests a neutral outlook, with limited upside potential in the near term. The company's capital expenditure of -130,000 MYR indicates a reduction in investment, which may signal a focus on cost control or a slowdown in expansion.

The risk assessment for Elsoft Research Bhd indicates low liquidity and dilution risks, with no immediate filing-based flags detected. The company's lack of long-term debt and strong equity position reduce financial leverage risk. However, the absence of detailed risk disclosures in recent filings limits the ability to fully assess potential vulnerabilities.

Recent events and disclosures for Elsoft Research Bhd are limited in the available data. The company has not issued any notable press releases or filed significant regulatory updates in the latest reporting period. This lack of recent activity may indicate a stable but uneventful operational environment, though it also limits visibility into strategic initiatives or emerging risks.

The company maintains a zero long-term debt position, resulting in a debt-to-equity ratio that ranks in the top quartile.

Free cash flow surged 131.4% year-over-year to MYR 5.5 million, reversing the previous year's negative cash flow.

Analysts project 22.7% upside potential, with a consensus price target of MYR 0.27 versus the current market price.

Risk flags for dilution, liquidity, and credit are all assessed as low, indicating a stable fundamental risk profile.

Revenue has contracted sharply with a four-year CAGR of -26.7%, falling to MYR 8.4 million in the latest fiscal year.

Gross profit turned negative at MYR -0.9 million in FY2026, signaling severe deterioration in core product profitability.

Return on equity of 1.0% and return on assets of 1.0% are both below the cohort median benchmarks.

Cash conversion is in the bottom quartile of the cohort at -1.29, indicating poor efficiency in generating cash from earnings.

Net income declined with a four-year CAGR of -17.6%, despite a recent year-over-year increase driven by a low base.

Revenue MYR 8.4M, −39,3% YoY; Operating income +98,6% YoY.

• ▍Revenue MYR 8.4M, −39,3% YoY
• ▍Operating income +98,6% YoY
• ▍Net income +128,8% YoY
• ▍Free cash flow +131,4% YoY
• ▍Net margin 59.9%

Revenue MYR 13.9M, −13,6% YoY; Operating income −66,8% YoY.

• ▍Revenue MYR 13.9M, −13,6% YoY
• ▍Operating income −66,8% YoY
• ▍Net income −68,6% YoY
• ▍Free cash flow −38,7% YoY
• ▍Net margin 15.9%

Revenue MYR 16.1M, −42,8% YoY; Operating income −83,9% YoY.

• ▍Revenue MYR 16.1M, −42,8% YoY
• ▍Operating income −83,9% YoY
• ▍Net income −83,7% YoY
• ▍Free cash flow −142,1% YoY
• ▍Net margin 43.7%

Revenue MYR 28.1M, −3,7% YoY; Operating income +303,6% YoY.

• ▍Revenue MYR 28.1M, −3,7% YoY
• ▍Operating income +303,6% YoY
• ▍Net income +292,3% YoY
• ▍Free cash flow +518,5% YoY
• ▍Net margin 152.9%

Revenue MYR 29.2M; Operating income MYR 11.5M.

• ▍Revenue MYR 29.2M
• ▍Operating income MYR 11.5M
• ▍Net margin 37.5%