Argent Industrial Ltd

Argent Industrial Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.06 and a current ratio of 2.75, indicating strong short-term liquidity coverage. The balance sheet shows total assets of 2.90 billion ZAR against total liabilities of 863 million ZAR, resulting in total equity of 2.04 billion ZAR. Long-term debt stands at 129 million ZAR, which is modest relative to equity. However, a key risk flag notes that net cash is negative after subtracting total debt, suggesting that while leverage is low, liquid cash reserves may be constrained relative to total obligations.

Profitability metrics show a return on equity (ROE) of 9.33% and a return on assets (ROA) of 6.55%. The company generated a gross profit of 893 million ZAR on revenue of 2.84 billion ZAR, implying a gross margin of approximately 31.5%. Operating income was 406 million ZAR, leading to a net income of 293 million ZAR, which represents a net margin of roughly 10.3%. Without cohort median data provided, these returns are assessed in isolation, but the positive operating cash flow of 331 million ZAR supports the earnings quality.

Debt-to-equity ratio of 0.06 is well below the cohort median of 0.38, suggesting a conservative and stable capital structure.

Revenue declined by 3.8% annually over four years, signaling a persistent contraction in top-line business growth.

Cash conversion ratio of 0.59 is below the cohort median of 1.18, indicating weaker efficiency in turning earnings into cash.

Medium liquidity risk flags suggest potential challenges in meeting short-term financial obligations compared to more liquid peers.