Toba Pulp Lestari Tbk PT

Toba Pulp Lestari Tbk PT has a highly leveraged capital structure, with a debt-to-equity ratio of 2.89, indicating a significant reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 1.18, suggesting it can cover its short-term obligations but with limited buffer. Despite a positive operating cash flow of 63.57 million USD, the company's free cash flow is negative at -25.69 million USD, indicating that capital expenditures are outpacing operating cash inflows.

Profitability metrics are weak, with a return on equity of -9.33% and a return on assets of -2.14%, both significantly below industry norms for a paper products company. The company reported a net loss of 10.28 million USD, despite generating 23.77 million USD in revenue, highlighting a substantial decline in gross and operating margins. The gross profit margin stands at 23.86%, which is below the typical range for firms in the paper products industry.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the provided data. This lack of diversification increases exposure to regional economic and regulatory risks, particularly in Indonesia, where the company is headquartered. No specific geographic breakdown is available, but the absence of international revenue segments suggests a high concentration in the domestic market.

Looking ahead, the company's growth trajectory is uncertain, with no disclosed revenue growth in the most recent fiscal year. The company's capital expenditures of 63.01 million USD were significantly higher than its free cash flow, indicating a need for external financing or asset sales to fund operations. The negative net income and high debt load suggest that the company may face challenges in sustaining operations without restructuring or external support.

The company's risk profile is elevated, with a high debt-to-equity ratio and negative net cash position after subtracting total debt. The risk of dilution is assessed as low, with no significant changes in shares outstanding between basic and diluted shares. However, the company's financial performance and capital structure suggest a high risk of further dilution if earnings do not improve or if additional financing is required.

Recent financial filings and transcripts indicate a challenging operating environment, with the company reporting a net loss and declining profitability. No recent strategic announcements or operational changes were disclosed in the available data, but the company's financial performance suggests a need for cost optimization or revenue diversification.

Revenue grew 22% year-over-year to $116.7 million in FY2002, indicating a recovery in top-line sales performance.

Free cash flow improved by 66.1% year-over-year, suggesting a significant stabilization in cash generation capabilities.

Operating margin remained positive at 3.1% in FY2002, demonstrating the ability to maintain operational profitability despite losses.

Gross profit increased to $16.5 million in FY2002, reflecting improved core production efficiency or pricing power.

Dilution risk is assessed as low, providing some protection for existing shareholders against equity erosion.

Debt-to-equity ratio of 2.89 is significantly higher than the cohort median of 0.46, indicating high leverage.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations or securing financing.

Net income remained negative at -$21.5 million in FY2002, continuing a trend of substantial operational losses.

Revenue $116.7M, +22,0% YoY; Operating income −63,7% YoY.

• ▍Revenue $116.7M, +22,0% YoY
• ▍Operating income −63,7% YoY
• ▍Net income +16,7% YoY
• ▍Free cash flow +66,1% YoY
• ▍Net margin -18.4%

Revenue $95.7M, −45,4% YoY; Operating income −263,8% YoY.

• ▍Revenue $95.7M, −45,4% YoY
• ▍Operating income −263,8% YoY
• ▍Net income −25,7% YoY
• ▍Free cash flow −605,4% YoY
• ▍Net margin -26.9%

Revenue $175.3M, +19,4% YoY; Operating income −60,1% YoY.

• ▍Revenue $175.3M, +19,4% YoY
• ▍Operating income −60,1% YoY
• ▍Net income −3 415,4% YoY
• ▍Free cash flow −161,8% YoY
• ▍Net margin -11.7%

Revenue $146.9M, +16,5% YoY; Operating income +246,9% YoY.

• ▍Revenue $146.9M, +16,5% YoY
• ▍Operating income +246,9% YoY
• ▍Net income −83,5% YoY
• ▍Free cash flow +256,9% YoY
• ▍Net margin 0.4%

Revenue $126.0M; Operating income -$8.1M.

• ▍Revenue $126.0M
• ▍Operating income -$8.1M
• ▍Net margin 3.0%