W T K Holdings Bhd

W T K Holdings Bhd maintains a relatively balanced capital structure, with a debt-to-equity ratio of 0.59, indicating moderate leverage. The company holds MYR 274.8 million in cash and equivalents, but this is offset by long-term debt of MYR 456.9 million, resulting in a net cash position that is negative. The liquidity position is assessed as medium, with a current ratio of 2.05, suggesting the company can cover its short-term obligations but may face challenges in the long term.

Profitability metrics for W T K Holdings Bhd are below industry norms, with a return on equity (ROE) of 0.69% and a return on assets (ROA) of 0.36%. These figures indicate that the company is not generating strong returns relative to its equity and asset base, which may signal inefficiencies in capital utilization or pricing power.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no geographic diversification provided in the available data. This lack of diversification could expose the company to regional economic downturns or supply chain disruptions.

Looking ahead, the company's growth trajectory appears modest. The most recent actual revenue of MYR 590.7 million is significantly lower than the MYR 158.98 million reported in the latest financial snapshot, suggesting a potential data inconsistency or a shift in reporting periods. Analysts have recorded a negative EPS of -MYR 0.23, which may reflect operational challenges or a difficult market environment.

Risk factors for W T K Holdings Bhd include liquidity concerns, as the company's net cash position is negative after accounting for total debt. The risk of dilution is assessed as low, with no significant changes in shares outstanding between basic and diluted figures. However, the company's capital expenditures of -MYR 7.76 million suggest a reduction in investment, which could impact long-term growth.

Recent events, as reflected in the latest financial filings, show a decline in profitability and a negative EPS. The company has not disclosed any major strategic initiatives or capital-raising activities in the available data, which may indicate a period of operational adjustment or market response.

Operating income surged 606.6% year-over-year to MYR 76.9 million in fiscal 2020, signaling a dramatic operational turnaround.

Free cash flow jumped 352.7% to MYR 39.5 million, demonstrating significantly improved cash generation capabilities in the latest period.

Cash conversion ratio of 3.05 places the firm in the top quartile, outperforming the cohort median of 0.42.

Net income turned positive to MYR 38.6 million in 2020, reversing a four-year trend of net losses.

The company carries a high credit risk flag, suggesting significant concerns regarding its ability to meet financial obligations.

Long-term debt remains elevated at MYR 421.1 million, reflecting a substantial leverage burden despite recent profitability.

Return on equity of 0.69% is minimal, indicating inefficient use of shareholder capital to generate profits.

Medium liquidity risk flags suggest potential challenges in meeting short-term financial obligations or operational needs.

Revenue MYR 151.6M, −11,4% YoY; Operating income +169,7% YoY.

• ▍Revenue MYR 151.6M, −11,4% YoY
• ▍Operating income +169,7% YoY
• ▍Net income +129,5% YoY
• ▍Free cash flow +140,0% YoY
• ▍Net margin 10.0%

Revenue MYR 130.8M, −21,9% YoY; Operating income +342,2% YoY.

• ▍Revenue MYR 130.8M, −21,9% YoY
• ▍Operating income +342,2% YoY
• ▍Net income +1 397,9% YoY
• ▍Free cash flow +287,6% YoY
• ▍Net margin 20.9%

Revenue MYR 138.2M, −20,8% YoY; Operating income +119,3% YoY.

• ▍Revenue MYR 138.2M, −20,8% YoY
• ▍Operating income +119,3% YoY
• ▍Net income +1 601,3% YoY
• ▍Free cash flow +55,4% YoY
• ▍Net margin 12.6%

Revenue MYR 156.6M, −1,5% YoY; Operating income −216,3% YoY.

• ▍Revenue MYR 156.6M, −1,5% YoY
• ▍Operating income −216,3% YoY
• ▍Net income −502,1% YoY
• ▍Free cash flow −273,9% YoY
• ▍Net margin -13.7%

Revenue MYR 171.0M; Operating income -MYR 43.8M.

• ▍Revenue MYR 171.0M
• ▍Operating income -MYR 43.8M
• ▍Net margin -30.1%

Revenue MYR 167.6M; Operating income MYR 8.2M.

• ▍Revenue MYR 167.6M
• ▍Operating income MYR 8.2M
• ▍Net margin 1.1%

Revenue MYR 174.4M; Operating income MYR 10.1M.

• ▍Revenue MYR 174.4M
• ▍Operating income MYR 10.1M
• ▍Net margin 0.6%

Revenue MYR 159.0M; Operating income MYR 10.3M.

• ▍Revenue MYR 159.0M
• ▍Operating income MYR 10.3M
• ▍Net margin 3.3%

Revenue MYR 577.1M, −14,1% YoY; Operating income +606,6% YoY.

• ▍Revenue MYR 577.1M, −14,1% YoY
• ▍Operating income +606,6% YoY
• ▍Net income +189,3% YoY
• ▍Free cash flow +352,6% YoY
• ▍Net margin 6.7%

Revenue MYR 671.9M, +19,8% YoY; Operating income −105,4% YoY.

• ▍Revenue MYR 671.9M, +19,8% YoY
• ▍Operating income −105,4% YoY
• ▍Net income −122,6% YoY
• ▍Free cash flow +1,2% YoY
• ▍Net margin -6.4%

Revenue MYR 560.8M, +18,6% YoY; Operating income −124,1% YoY.

• ▍Revenue MYR 560.8M, +18,6% YoY
• ▍Operating income −124,1% YoY
• ▍Net income −291,9% YoY
• ▍Free cash flow −256,3% YoY
• ▍Net margin -3.5%

Revenue MYR 473.0M, +19,6% YoY; Operating income +146 328,6% YoY.

• ▍Revenue MYR 473.0M, +19,6% YoY
• ▍Operating income +146 328,6% YoY
• ▍Net income +52,4% YoY
• ▍Free cash flow −61,9% YoY
• ▍Net margin -1.0%