Merdeka Battery Materials Tbk PT

Merdeka Battery Materials Tbk PT maintains a capital structure characterized by significant leverage and heavy investment activity. The company reports total assets of $3.74 billion against total liabilities of $2.15 billion, resulting in total equity of $1.58 billion. Long-term debt stands at $944.9 million, yielding a debt-to-equity ratio of 0.6. Liquidity is assessed as medium risk, with a current ratio of 1.62 indicating adequate short-term coverage. However, the company faces negative net cash positions after accounting for total debt, and free cash flow is negative at -$1.3 million, driven by substantial capital expenditures of $193.3 million against operating cash flow of $37.2 million.

Profitability metrics indicate early-stage or cyclical pressure, with a net income of $29.6 million on revenue of $1.43 billion. This results in a return on equity of 3.98% and a return on assets of 1.69%. The valuation multiples are exceptionally high, with a price-to-earnings ratio of 847,224.67 and an EV/EBITDA of 228,862.82, reflecting the market's pricing of future growth expectations rather than current earnings power. The gross profit of $166.5 million suggests a gross margin of approximately 11.6%, while operating income of $131.3 million indicates operational leverage before interest and taxes.

Segment and geographic revenue concentration data is not available in the provided input, preventing a detailed analysis of revenue mix or regional exposure. The company's activity is broadly classified under battery materials, but specific product lines or customer concentrations are not disclosed in the current dataset.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot shows a revenue base of $1.43 billion, but without prior year or quarterly comparisons, the year-over-year growth rate cannot be calculated. The significant capital expenditure of $193.3 million suggests ongoing expansion or capacity building, which may drive future revenue growth.

Risk factors include medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, highlighting reliance on external financing or future cash flow generation to service obligations. The high valuation multiples amplify sensitivity to any deterioration in earnings or cash flow, while the heavy capital expenditure profile requires successful project execution to justify the investment.

Recent observations indicate strong analyst sentiment, with a mean recommendation of 1.83 (where 1 is strong buy) and a mean price target of $835.71, significantly above the current market price of $494.00. The high price target of $1,000.00 and low of $580.00 suggest a wide range of expectations, but the consensus leans towards upside potential. There are no specific filing, news, or transcript observations provided in the input to detail recent corporate events.

Analysts project 75.6% upside to a mean price target of 835.71, reflecting strong consensus buy recommendations from six analysts.

Net income grew to $29.6 million in FY2026, demonstrating improved profitability despite a decline in revenue from the prior year.

Free cash flow improved dramatically to near break-even at -$1.3 million in FY2026, reducing cash burn compared to previous years.

High credit risk is flagged, compounded by long-term debt rising to $944.9 million in FY2026, increasing financial leverage concerns.

Revenue declined 100% year-over-year to zero in the latest period, signaling a complete halt in top-line growth momentum.

Net margin of 4.1% trails the cohort median of 5.3%, indicating weaker bottom-line efficiency compared to industry peers.

Cash conversion ratio of 0.59 is below the cohort median of 1.2, highlighting challenges in converting earnings into cash.

Revenue $455.1M, +24,3% YoY; Operating income +883,2% YoY.

• ▍Revenue $455.1M, +24,3% YoY
• ▍Operating income +883,2% YoY
• ▍Net income +966,2% YoY
• ▍Free cash flow +433,4% YoY
• ▍Net margin 6.6%

Revenue $499.5M, +7,5% YoY; Operating income +193,9% YoY.

• ▍Revenue $499.5M, +7,5% YoY
• ▍Operating income +193,9% YoY
• ▍Net income −1,3% YoY
• ▍Free cash flow +1 140,4% YoY
• ▍Net margin 0.9%

Revenue $307.3M, −32,9% YoY; Operating income +261,6% YoY.

• ▍Revenue $307.3M, −32,9% YoY
• ▍Operating income +261,6% YoY
• ▍Net income +1 110,2% YoY
• ▍Free cash flow +43,9% YoY
• ▍Net margin 6.3%

Revenue $261.6M, −45,2% YoY; Operating income −37,6% YoY.

• ▍Revenue $261.6M, −45,2% YoY
• ▍Operating income −37,6% YoY
• ▍Net income −44,3% YoY
• ▍Free cash flow +174,7% YoY
• ▍Net margin 3.6%

Revenue $366.1M; Operating income $11.5M.

• ▍Revenue $366.1M
• ▍Operating income $11.5M
• ▍Net margin -0.9%

Revenue $464.9M; Operating income $21.4M.

• ▍Revenue $464.9M
• ▍Operating income $21.4M
• ▍Net margin 0.9%

Revenue $458.2M; Operating income $9.0M.

• ▍Revenue $458.2M
• ▍Operating income $9.0M
• ▍Net margin -0.4%

Revenue $477.4M; Operating income $39.0M.

• ▍Revenue $477.4M
• ▍Operating income $39.0M
• ▍Net margin 3.5%

Revenue $1.43B, −22,2% YoY; Operating income +64,4% YoY.

• ▍Revenue $1.43B, −22,2% YoY
• ▍Operating income +64,4% YoY
• ▍Net income +29,8% YoY
• ▍Free cash flow +98,3% YoY
• ▍Net margin 2.1%

Revenue $1.84B, +38,9% YoY; Operating income +67,8% YoY.

• ▍Revenue $1.84B, +38,9% YoY
• ▍Operating income +67,8% YoY
• ▍Net income +228,8% YoY
• ▍Free cash flow +73,2% YoY
• ▍Net margin 1.2%

Revenue $1.33B, +191,5% YoY; Operating income +56,0% YoY.

• ▍Revenue $1.33B, +191,5% YoY
• ▍Operating income +56,0% YoY
• ▍Net income −68,0% YoY
• ▍Free cash flow +39,8% YoY
• ▍Net margin 0.5%