Magontec Ltd

Magontec Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.18 and a current ratio of 3.36, indicating strong short-term liquidity coverage. The company holds AUD 7.15 million in cash and equivalents against AUD 8.20 million in long-term debt, resulting in a net cash position that is technically negative after accounting for total liabilities. Despite the healthy current ratio, the risk assessment flags medium liquidity risk, likely due to the negative operating cash flow of AUD 3.52 million and free cash flow of AUD 5.92 million. The market capitalization stands at AUD 11.88 million, trading at a price-to-book ratio of 0.25, suggesting the market values the company at a significant discount to its tangible book value.

Profitability metrics are currently negative, with a return on equity of -11.55% and a return on assets of -7.42%. The company reported a net loss of AUD 5.40 million on revenues of AUD 64.12 million, resulting in an operating income of -AUD 6.19 million. The gross profit of AUD 11.96 million indicates a gross margin of approximately 18.7%, but operating expenses significantly outpace this contribution, leading to the operating deficit. Without cohort median data for direct comparison, the negative returns highlight the company's current inability to generate economic profit, a common characteristic in early-stage or turnaround mining operations.

Revenue grew 12.3% year-over-year to AUD 64.1 million in FY2008, indicating recent top-line momentum.

Net income improved 43.3% year-over-year in FY2008, suggesting a potential turnaround in profitability trends.

The debt-to-equity ratio of 0.18 is below the cohort median of 0.12, indicating conservative leverage.

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

The company posted a net loss of AUD 5.4 million in FY2008, resulting in a negative net margin.

Operating and net margins rank in the bottom quartile compared to the Metals & Mining cohort.

Credit risk is flagged as high, signaling significant potential issues with debt servicing or solvency.

Revenue A$64.1M, +12,3% YoY; Operating income −15,4% YoY.

• ▍Revenue A$64.1M, +12,3% YoY
• ▍Operating income −15,4% YoY
• ▍Net income +43,3% YoY
• ▍Free cash flow −24,9% YoY
• ▍Net margin -8.4%

Revenue A$57.1M, −28,1% YoY; Operating income −489,3% YoY.

• ▍Revenue A$57.1M, −28,1% YoY
• ▍Operating income −489,3% YoY
• ▍Net income −2 142,3% YoY
• ▍Free cash flow −167,7% YoY
• ▍Net margin -16.7%

Revenue A$79.5M, −49,9% YoY; Operating income −94,2% YoY.

• ▍Revenue A$79.5M, −49,9% YoY
• ▍Operating income −94,2% YoY
• ▍Net income −97,2% YoY
• ▍Free cash flow −110,3% YoY
• ▍Net margin 0.6%

Revenue A$158.6M, +37,7% YoY; Operating income +254,3% YoY.

• ▍Revenue A$158.6M, +37,7% YoY
• ▍Operating income +254,3% YoY
• ▍Net income +229,8% YoY
• ▍Free cash flow +147,5% YoY
• ▍Net margin 10.4%

Revenue A$115.2M; Operating income A$6.7M.

• ▍Revenue A$115.2M
• ▍Operating income A$6.7M
• ▍Net margin 4.3%