Kuo Yang Construction Co Ltd

Kuo Yang Construction maintains a capital structure with a debt-to-equity ratio of 0.78, indicating moderate leverage relative to its equity base. The company's liquidity position is characterized by a current ratio of 1.71, suggesting it can cover its short-term obligations, though its cash and equivalents of TWD 948,000 are minimal compared to its long-term debt of TWD 8,003,211,000. The price-to-book ratio of 0.66 implies that the company's market value is trading below its book value, which may reflect market skepticism about its asset quality or future earnings potential.

Profitability metrics for Kuo Yang Construction are weak, with a return on equity (ROE) of 0.0046 and a return on assets (ROA) of 0.0023, both significantly below the industry median for real estate development and operations. The company's operating margin is 4.33% (TWD 10,403,000 operating income on TWD 240,084,000 revenue), which is also below the industry average for firms in this sector. Gross margin of 32.99% (TWD 79,199,000 gross profit on TWD 240,084,000 revenue) is in line with the industry, but the low net margin of 19.78% (TWD 47,492,000 net income on TWD 240,084,000 revenue) suggests high operating expenses or interest costs.

The company's revenue is not segmented by geographic region or business line in the available data, but its exposure is likely concentrated in Taiwan, given its listing and operational base. No material international operations are disclosed, and the company's revenue concentration is not explicitly quantified in the data.

Kuo Yang Construction's growth trajectory is uncertain, with no clear revenue growth or decline in the most recent period. The company's operating cash flow is negative at TWD -894,184,000, which is a concern for its ability to fund operations and debt obligations without external financing. Free cash flow of TWD 56,988,000 is positive but insufficient to cover interest expenses or provide a buffer for capital expenditures.

The company faces moderate liquidity risk, as its cash and equivalents are far below its long-term debt. The risk assessment also flags a negative net cash position after subtracting total debt, which could necessitate additional financing or asset sales to maintain operations. Dilution risk is currently low, but the company's high leverage and negative operating cash flow could increase the likelihood of equity issuance in the future.

Recent filings and transcripts do not provide specific details on strategic initiatives or major events, but the company's financial performance and liquidity position suggest it may be under pressure to improve operational efficiency or secure additional capital. No material changes in management or business strategy are disclosed in the available data.

Debt-to-equity ratio of 0.78 is below the 0.52 cohort median, suggesting a conservative leverage position.

Revenue CAGR of 4.9% over four years demonstrates consistent long-term top-line growth trajectory.

Net income CAGR of 11.4% over four years indicates strong historical earnings growth momentum.

Capex to revenue ratio of -0.26% is above the cohort median, implying lower capital intensity.

Cash conversion ratio of -18.83% sits in the bottom quartile, showing poor cash generation.

Revenue TWD 421.6M, −38,0% YoY.

• ▍Revenue TWD 421.6M, −38,0% YoY

Revenue TWD 1.81B, +1 245,6% YoY; Operating income +1 223,6% YoY.

• ▍Revenue TWD 1.81B, +1 245,6% YoY
• ▍Operating income +1 223,6% YoY
• ▍Net income +479,4% YoY
• ▍Free cash flow +478,0% YoY
• ▍Net margin 17.3%

Revenue TWD 1.43B, +1 846,7% YoY; Operating income +1 429,5% YoY.

• ▍Revenue TWD 1.43B, +1 846,7% YoY
• ▍Operating income +1 429,5% YoY
• ▍Net income +743,4% YoY
• ▍Free cash flow +510,2% YoY
• ▍Net margin 22.4%

Revenue TWD 454.8M, +89,4% YoY; Operating income +352,6% YoY.

• ▍Revenue TWD 454.8M, +89,4% YoY
• ▍Operating income +352,6% YoY
• ▍Net income +26,7% YoY
• ▍Free cash flow +6,6% YoY
• ▍Net margin 13.2%

Revenue TWD 679.8M; Operating income TWD 157.3M.

• ▍Revenue TWD 679.8M
• ▍Operating income TWD 157.3M
• ▍Net margin 30.4%

Revenue TWD 4.37B, +619,3% YoY; Operating income +1 662,4% YoY.

• ▍Revenue TWD 4.37B, +619,3% YoY
• ▍Operating income +1 662,4% YoY
• ▍Net income +354,8% YoY
• ▍Free cash flow +289,7% YoY
• ▍Net margin 20.6%

Revenue TWD 607.7M, −17,4% YoY; Operating income −555,9% YoY.

• ▍Revenue TWD 607.7M, −17,4% YoY
• ▍Operating income −555,9% YoY
• ▍Net income −35,0% YoY
• ▍Free cash flow −28,6% YoY
• ▍Net margin 32.5%