Ekarat Engineering PCL

Ekarat Engineering maintains a conservative capital structure with a debt-to-equity ratio of 0.25, significantly below the industry median of 0.60, indicating a strong equity base and limited leverage. The company's liquidity position is mixed: while it holds 97.4 million THB in cash and equivalents, its operating cash flow is negative at -85.1 million THB, and net cash is negative after subtracting total debt. This suggests potential short-term liquidity constraints despite a current ratio of 2.08, which is above the industry median of 1.80.

Profitability metrics show Ekarat Engineering underperforming relative to industry benchmarks. Return on equity (ROE) is 2.67%, well below the industry median of 6.50%, and return on assets (ROA) is 1.66%, compared to a median of 3.20%. These figures suggest the company is not efficiently utilizing its equity or asset base to generate returns. Gross margin is 25.0%, slightly above the industry median of 23.5%, but operating margin is 11.0%, below the median of 14.0%, indicating higher operating costs or pricing pressures.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification beyond Thailand. This lack of diversification increases exposure to local economic and regulatory risks, particularly in a volatile emerging market. No material revenue is attributed to international operations, and no segment-specific financials are disclosed in the latest filings.

Growth prospects are muted, with no significant revenue expansion in recent periods. The company reported 519.8 million THB in revenue, with no clear trajectory for acceleration. Analysts recorded a recent actual revenue of 2,343.9 million THB, but this appears to be a historical figure rather than a forward-looking estimate. No guidance is provided for the next fiscal year, and the company's capital expenditure of -32.6 million THB suggests a focus on cost control rather than expansion.

Risk factors include liquidity constraints and the potential for dilution, though the latter is currently assessed as low. The company's negative operating cash flow and net cash position raise concerns about its ability to fund operations without external financing. No recent equity issuance or dilutive events are disclosed, but the risk of future dilution remains if the company requires additional capital. The risk assessment flags net cash as negative after subtracting total debt, a red flag for liquidity risk.

Recent events include a reported earnings per share (EPS) of -0.05 THB, indicating a loss per share in the latest reporting period. No material earnings surprises or significant events are disclosed in the latest filings or transcripts. The company's financial performance appears to be in a trough, with no clear catalysts for recovery in the near term.

Debt-to-equity ratio of 0.25 is below the 0.19 cohort median, suggesting a conservative capital structure.

Cash conversion of -2.16 places the company in the bottom quartile of its peer cohort.

The company faces high credit risk, posing a significant threat to financial stability and operations.

Net debt-to-EBITDA stands at 8.8, indicating a high leverage burden relative to earnings.

Revenue declined at a 2.0% CAGR over four years, showing long-term top-line contraction.

Revenue THB 333.2M, −35,0% YoY.

• ▍Revenue THB 333.2M, −35,0% YoY

Revenue THB 615.2M, −30,6% YoY; Operating income −32,1% YoY.

• ▍Revenue THB 615.2M, −30,6% YoY
• ▍Operating income −32,1% YoY
• ▍Net income −36,9% YoY
• ▍Free cash flow −46,1% YoY
• ▍Net margin 12.4%

Revenue THB 364.8M, −48,6% YoY; Operating income −88,1% YoY.

• ▍Revenue THB 364.8M, −48,6% YoY
• ▍Operating income −88,1% YoY
• ▍Net income −97,1% YoY
• ▍Free cash flow −97,9% YoY
• ▍Net margin 0.6%

Revenue THB 424.7M, −18,3% YoY; Operating income −52,4% YoY.

• ▍Revenue THB 424.7M, −18,3% YoY
• ▍Operating income −52,4% YoY
• ▍Net income −51,2% YoY
• ▍Free cash flow −47,0% YoY
• ▍Net margin 4.5%

Revenue THB 512.9M; Operating income THB 123.8M.

• ▍Revenue THB 512.9M
• ▍Operating income THB 123.8M
• ▍Net margin 17.8%

Revenue THB 519.8M; Operating income THB 57.4M.

• ▍Revenue THB 519.8M
• ▍Operating income THB 57.4M
• ▍Net margin 7.6%

Revenue THB 709.6M; Operating income THB 110.5M.

• ▍Revenue THB 709.6M
• ▍Operating income THB 110.5M
• ▍Net margin 11.5%

Revenue THB 885.9M; Operating income THB 157.8M.

• ▍Revenue THB 885.9M
• ▍Operating income THB 157.8M
• ▍Net margin 13.6%

Revenue THB 1.92B, −25,4% YoY; Operating income −28,9% YoY.

• ▍Revenue THB 1.92B, −25,4% YoY
• ▍Operating income −28,9% YoY
• ▍Net income −32,4% YoY
• ▍Free cash flow −75,2% YoY
• ▍Net margin 9.9%

Revenue THB 2.57B, +12,6% YoY; Operating income +21,4% YoY.

• ▍Revenue THB 2.57B, +12,6% YoY
• ▍Operating income +21,4% YoY
• ▍Net income +27,0% YoY
• ▍Free cash flow +111,3% YoY
• ▍Net margin 10.9%

Revenue THB 2.28B, +8,5% YoY; Operating income +41,0% YoY.

• ▍Revenue THB 2.28B, +8,5% YoY
• ▍Operating income +41,0% YoY
• ▍Net income +37,4% YoY
• ▍Free cash flow −14,2% YoY
• ▍Net margin 9.7%