Empresa Siderurgica del Peru SAA

Empresa Siderurgica del Peru SAA maintains a conservative capital structure with a debt-to-equity ratio of 0.1, indicating minimal leverage relative to shareholder equity. The balance sheet shows total assets of PEN 1,589,220,000 against total liabilities of PEN 611,811,000, resulting in total equity of PEN 977,409,000. Long-term debt stands at PEN 102,048,000, which is modest compared to the equity base. Liquidity is assessed as medium, supported by a current ratio of 1.82, suggesting adequate short-term asset coverage for liabilities. However, a key risk flag notes that net cash is negative after subtracting total debt, implying that cash and equivalents are insufficient to cover all debt obligations without asset liquidation or refinancing.

Profitability metrics demonstrate efficient capital utilization, with a return on equity (ROE) of 16.04% and a return on assets (ROA) of 9.87%. The company generated net income of PEN 137,409,000 on revenue of PEN 2,360,502,000, yielding a net margin of approximately 5.8%. Operating income was PEN 227,701,000, reflecting an operating margin of roughly 9.6%. Gross profit was PEN 277,587,000, indicating a gross margin of approximately 11.8%. These returns suggest the company is generating solid profits relative to its asset base and equity, although specific cohort median comparisons are not available to benchmark these figures against industry peers.

Segment and geographic revenue breakdowns are not provided in the available data, preventing a detailed analysis of revenue concentration or regional exposure. The company’s primary activity is identified as steel production within the Metals & Mining sector, but specific product lines or customer concentrations are not disclosed in the current snapshot.

Growth trajectory analysis is limited due to the absence of historical period data. The current financial snapshot provides a single-period view of revenue and profitability, but without multi-year annual or quarterly trends, it is not possible to assess the direction or consistency of revenue growth or earnings expansion.

Risk assessment highlights medium liquidity risk and low dilution risk. The low dilution risk is supported by the fact that basic and diluted shares outstanding are identical at 700,000,000, indicating no significant options or convertible securities currently impacting share count. The key flag regarding negative net cash after debt subtraction remains a primary concern, suggesting potential refinancing needs or reliance on operating cash flows to service debt.

Recent observations include ESG metrics, with a total ESG score of 66.56 and a grade of B. The environment pillar scored 68.79, the social pillar 83.16, and the governance pillar 36.16, indicating strengths in social responsibility but weaknesses in governance practices. The ESG controversies score is 100, suggesting no significant recent controversies. No specific filing, news, or transcript observations were provided to detail recent corporate events or management signals.

Net income surged 46.7% year-over-year to PEN 323 million, demonstrating strong profitability growth despite revenue declines.

Free cash flow improved dramatically by 288.1% year-over-year, reaching PEN 180 million, enhancing financial flexibility.

Debt-to-equity ratio of 0.1 is well below the cohort median of 0.4, signaling a conservative and stable capital structure.

The company faces medium liquidity risk, which could constrain short-term operational flexibility or debt servicing capabilities.

Revenue PEN 2.38B, −13,1% YoY; Operating income −44,3% YoY.

• ▍Revenue PEN 2.38B, −13,1% YoY
• ▍Operating income −44,3% YoY
• ▍Net income −47,5% YoY
• ▍Free cash flow +122,6% YoY
• ▍Net margin 4.9%