Delta Giri Wacana Tbk PT

Delta Giri Wacana Tbk PT has a debt-to-equity ratio of 1.42, indicating a moderate reliance on debt financing, which is in line with the typical capital structure of companies in the agricultural chemicals industry. The company's liquidity position is assessed as medium, with a current ratio of 1.07, suggesting it has just enough current assets to cover its current liabilities. However, the company has no cash and equivalents and a negative net cash position after subtracting total debt, which raises concerns about its short-term liquidity.

In terms of profitability, the company's return on equity is 2.32%, and its return on assets is 0.61%, both of which are below the industry median for agricultural chemicals firms. This suggests that the company is underperforming in terms of generating returns for shareholders and utilizing its assets efficiently. The operating margin is 5.57%, and the net profit margin is 2.03%, which are also below the industry average, indicating that the company is facing cost pressures or pricing challenges.

The company's revenue is concentrated in a single business segment, as disclosed in its latest financial report, with no significant geographic diversification. This lack of diversification increases the company's exposure to regional economic and regulatory risks. The company's operations are primarily based in Indonesia, and it does not report any material revenue from international markets.

Looking at the company's growth trajectory, there is no indication of significant revenue growth in the near term. The company's capital expenditures are negative, suggesting a reduction in investment in new projects or capacity expansion. This could be a sign of operational retrenchment or a strategic shift in focus. The company's free cash flow is also negative, indicating that it is not generating sufficient cash from operations to fund its capital expenditures.

The company's risk profile is characterized by medium liquidity risk and low dilution risk. The negative net cash position and the absence of cash and equivalents increase the company's vulnerability to short-term financial stress. However, the company has not issued any new shares recently, and there is no indication of imminent dilution. The company's debt structure is primarily long-term, which provides some stability in its capital structure.

Recent events and disclosures indicate that the company has not filed any material regulatory or legal proceedings in the past year. The company's latest financial report does not mention any significant changes in management, strategic direction, or major business developments. The company's financial performance has been stable, but there are no signs of improvement in its profitability or liquidity position.

Revenue grew 31.6% annually over four years, demonstrating strong top-line expansion for the agricultural chemicals company.

Operating income surged 44.1% year-over-year in the latest period, indicating significant improvement in core profitability.

Free cash flow turned positive with a 131.7% year-over-year increase, signaling improved cash generation capabilities.

Net income expanded 28.2% annually over four years, showing consistent bottom-line growth despite margin pressures.

Long-term debt decreased significantly from previous peaks, suggesting active deleveraging efforts by the management team.

The company carries a high credit risk flag, indicating potential difficulties in meeting financial obligations.

Debt-to-equity ratio of 1.42 places the company in the bottom quartile of its agricultural chemicals cohort.

Cash conversion ratio of -1.13 ranks in the bottom quartile, highlighting poor efficiency in generating cash from operations.