Evermore Chemical Industry Co Ltd
Evermore Chemical Industry Co Ltd has a liquidity position that is moderate, with a current ratio of 1.22 and a negative net cash position after subtracting total debt. The company's price-to-book ratio is 1.63, and its price-to-tangible-book ratio is also 1.63, indicating a moderate premium over its book value. The company's market price is 25.4 TWD, and its market capitalization is 2,524,455,200 TWD. In terms of profitability, Evermore Chemical Industry Co Ltd has a return on equity of 5% and a return on assets of 2.63%. These figures are below the industry median for return on equity and return on assets, suggesting that the company is underperforming its peers in terms of capital efficiency and asset utilization. The company's revenue is primarily concentrated in the domestic and mainland China markets, with no specific segment breakdown provided. The geographic exposure is not diversified, and the company's revenue concentration in these regions could pose a risk if market conditions in these areas deteriorate. Evermore Chemical Industry Co Ltd's growth trajectory is modest, with a recent actual EPS of 1.18 TWD. The company's capital expenditure is negative at -40,200,000 TWD, indicating a reduction in investment in new assets. The company's free cash flow is 70,153,000 TWD, which is a positive sign for its ability to fund operations and potentially return value to shareholders. The company's risk assessment indicates a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt suggests that the company may need to raise additional capital or manage its debt more effectively. The dilution potential is low, and no significant adjustments have been applied to the valuation metrics. Recent events and filings do not provide specific details on the company's operations or strategic initiatives. The company's financial performance and market position are based on the latest available data, and there are no notable recent developments that have significantly impacted its operations or financial health.
Business. Evermore Chemical Industry Co Ltd produces and sells synthetic resins, including polyurethane (PU) and polyethylene (PE) polyol resins, primarily in the domestic and mainland China markets.
Classification. Evermore Chemical Industry Co Ltd is classified under the Basic Materials economic sector, Chemicals business sector, and Commodity Chemicals industry with a confidence level of 0.92.
- Evermore Chemical Industry Co Ltd has a moderate liquidity position with a current ratio of 1.22 and a negative net cash position after subtracting total debt.
- The company's return on equity of 5% and return on assets of 2.63% are below the industry median, indicating underperformance in capital efficiency and asset utilization.
- Revenue is primarily concentrated in the domestic and mainland China markets, with no specific segment breakdown provided, posing a risk if market conditions in these areas deteriorate.
- The company's growth trajectory is modest, with a recent actual EPS of 1.18 TWD and a negative capital expenditure of -40,200,000 TWD.
- The company's risk assessment indicates a medium liquidity risk and a low dilution risk, with a key flag of negative net cash after subtracting total debt.
- # RATIONALES
- **margin_outlook_rationale**: The company's gross profit margin is 18.13%, which is below the industry median, indicating potential pressure on margins due to competitive pricing or cost inefficiencies.
- **rd_outlook_rationale**: No specific R&D expenditure is disclosed, but the company's product line suggests ongoing innovation in synthetic resins to maintain market relevance.
- Net cash is negative after subtracting total debt.