Lavoro Ltd

Lavoro Ltd's capital structure shows a debt-to-equity ratio of 1.06, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 1.02, suggesting limited short-term liquidity cushion. With cash and equivalents of 564.31 million BRL and long-term debt of 1,921.33 million BRL, the company has negative net cash, which raises liquidity concerns.

Profitability metrics reveal significant underperformance. The company reported a net loss of 66.54 million BRL and an operating loss of 27.57 million BRL, resulting in a negative return on equity of -3.68% and a negative return on assets of -0.71%. These figures fall well below the industry median for profitability, indicating operational inefficiencies or pricing pressures.

Geographically and segment-wise, Lavoro Ltd's exposure is not explicitly detailed in the available data. However, the company's revenue concentration and segment performance are not disclosed, making it difficult to assess diversification or regional risk.

The company's growth trajectory is mixed. While revenue for the latest period was 2.37 billion BRL, the operating and net losses suggest a lack of profitability. The outlook for the current fiscal year is uncertain, with no clear direction provided in the data.

Risk factors include medium liquidity risk due to the current ratio and negative net cash position. The dilution risk is assessed as low, with no significant changes in shares outstanding between basic and diluted shares. The company's operating cash flow of -590.49 million BRL and free cash flow of -52.56 million BRL further underscore the financial strain.

Recent events and filings do not provide additional insights into the company's operations or strategic direction. The latest actual EPS was -1.34 BRL, and the actual revenue was 1.88 billion BRL, both indicating a challenging financial period.

Lavoro's cash conversion ratio of 8.87 ranks best-in-class among 143 agricultural chemical peers.

The company reduced long-term debt from BRL 1.85 billion in 2023 to BRL 1.57 billion in 2024.

Dilution risk is assessed as low, suggesting limited immediate threat to existing shareholder equity value.

The company carries a high credit risk flag, indicating significant concerns regarding its debt servicing ability.

Return on equity stands at -3.68%, significantly underperforming the peer median of 5.24%.

Free cash flow −535,7% YoY.

• ▍Free cash flow −535,7% YoY

Revenue BRL 2.05B, −13,2% YoY; Operating income +149,8% YoY.

• ▍Revenue BRL 2.05B, −13,2% YoY
• ▍Operating income +149,8% YoY
• ▍Net income −273,5% YoY
• ▍Free cash flow −334,2% YoY
• ▍Net margin -12.1%

Revenue BRL 1.41B; Operating income -BRL 64.9M.

• ▍Revenue BRL 1.41B
• ▍Operating income -BRL 64.9M
• ▍Net margin -27.4%

Revenue BRL 2.55B; Operating income -BRL 46.8M.

• ▍Revenue BRL 2.55B
• ▍Operating income -BRL 46.8M
• ▍Net margin -11.5%

Revenue BRL 3.07B; Operating income BRL 151.2M.

• ▍Revenue BRL 3.07B
• ▍Operating income BRL 151.2M
• ▍Net margin -0.5%

Revenue BRL 6.52B, −30,6% YoY; Operating income −12 805,4% YoY.

• ▍Revenue BRL 6.52B, −30,6% YoY
• ▍Operating income −12 805,4% YoY
• ▍Net income −249,9% YoY
• ▍Free cash flow −281,9% YoY
• ▍Net margin -40.9%

Revenue BRL 9.39B, +0,5% YoY; Operating income −94,8% YoY.

• ▍Revenue BRL 9.39B, +0,5% YoY
• ▍Operating income −94,8% YoY
• ▍Net income −192,4% YoY
• ▍Free cash flow −402,1% YoY
• ▍Net margin -8.1%