Eastern Water Resources Development and Management PCL

Eastern Water Resources Development and Management PCL has a debt-to-equity ratio of 1.25, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.81, suggesting that it may struggle to meet short-term obligations without additional financing. The company's free cash flow is negative at -480,190,000 THB, which is a concern for its ability to fund operations and growth without external capital.

The company's profitability is weak, with a return on equity of -0.0019 and a return on assets of -0.0008, both of which are below the industry median for Water & Related Utilities. This indicates that the company is not generating sufficient returns to cover its cost of capital, which is a red flag for investors.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no significant geographic diversification. This lack of diversification increases the company's exposure to regional economic downturns and regulatory changes that could impact its operations.

The company's growth trajectory is uncertain, with a net income of -21,395,000 THB in the latest reporting period. The negative net income suggests that the company is not currently profitable, which could hinder its ability to invest in future growth opportunities. The capital expenditure of -729,178,000 THB indicates that the company is investing in its infrastructure, but the negative free cash flow suggests that these investments are not yet generating positive returns.

The company's risk assessment highlights a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt indicates that the company may need to seek additional financing to maintain its operations. The low dilution risk suggests that the company is not expected to issue a significant number of new shares in the near term, which is a positive sign for existing shareholders.

Recent events, as disclosed in the company's financial statements, include a negative net income and a negative free cash flow. These events suggest that the company is facing financial challenges and may need to take corrective actions to improve its financial performance. The company's operating cash flow of 379,689,000 THB is a positive sign, but it is not sufficient to cover the negative free cash flow.

Free cash flow improved by 42.9% year-over-year, indicating better cash generation despite revenue declines.

Operating income remained positive at 472.5 million THB in FY2021, showing core business profitability.

Long-term debt decreased slightly to 14.99 billion THB in FY2021, suggesting modest deleveraging efforts.

Revenue CAGR of 0.1% over four years indicates stable top-line performance amidst market fluctuations.

Dilution risk is assessed as low, protecting existing shareholders from significant equity value erosion.

Credit risk is flagged as high, indicating significant potential for loan defaults or financial instability.

Net margin of -2.0% places the company in the bottom quartile of its water utilities cohort.

Debt-to-equity ratio of 1.25 is in the bottom quartile, reflecting excessive leverage compared to peers.

Return on equity of -0.19% ranks in the bottom quartile, demonstrating poor capital efficiency.

Revenue THB 841.0M, −6,3% YoY; Operating income +56,6% YoY.

• ▍Revenue THB 841.0M, −6,3% YoY
• ▍Operating income +56,6% YoY
• ▍Net income −32,7% YoY
• ▍Free cash flow +226,2% YoY
• ▍Net margin 1.6%

Revenue THB 891.7M, −7,4% YoY; Operating income +141,9% YoY.

• ▍Revenue THB 891.7M, −7,4% YoY
• ▍Operating income +141,9% YoY
• ▍Net income +33,7% YoY
• ▍Free cash flow −378,7% YoY
• ▍Net margin -1.7%

Revenue THB 899.6M, −20,8% YoY; Operating income −27,6% YoY.

• ▍Revenue THB 899.6M, −20,8% YoY
• ▍Operating income −27,6% YoY
• ▍Net income −93,4% YoY
• ▍Free cash flow +330,3% YoY
• ▍Net margin 0.5%

Revenue THB 920.3M, −13,7% YoY; Operating income +323,3% YoY.

• ▍Revenue THB 920.3M, −13,7% YoY
• ▍Operating income +323,3% YoY
• ▍Net income +128,7% YoY
• ▍Free cash flow +135,7% YoY
• ▍Net margin 0.7%

Revenue THB 897.5M; Operating income THB 80.9M.

• ▍Revenue THB 897.5M
• ▍Operating income THB 80.9M
• ▍Net margin 2.3%

Revenue THB 963.0M; Operating income THB 46.5M.

• ▍Revenue THB 963.0M
• ▍Operating income THB 46.5M
• ▍Net margin -2.4%

Revenue THB 1.14B; Operating income THB 168.9M.

• ▍Revenue THB 1.14B
• ▍Operating income THB 168.9M
• ▍Net margin 6.2%

Revenue THB 3.55B, −12,6% YoY; Operating income +46,5% YoY.

• ▍Revenue THB 3.55B, −12,6% YoY
• ▍Operating income +46,5% YoY
• ▍Net income −79,6% YoY
• ▍Free cash flow +80,4% YoY
• ▍Net margin 0.3%

Revenue THB 4.06B, −5,2% YoY; Operating income −49,9% YoY.

• ▍Revenue THB 4.06B, −5,2% YoY
• ▍Operating income −49,9% YoY
• ▍Net income −85,0% YoY
• ▍Free cash flow −0,4% YoY
• ▍Net margin 1.1%

Revenue THB 4.26B, −7,9% YoY; Operating income −27,0% YoY.

• ▍Revenue THB 4.26B, −7,9% YoY
• ▍Operating income −27,0% YoY
• ▍Net income −33,6% YoY
• ▍Free cash flow +3,5% YoY
• ▍Net margin 16.5%