Energia Latina SA

Energia Latina SA has a debt-to-equity ratio of 0.41, indicating a relatively conservative capital structure with a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.93, suggesting that it has nearly enough short-term assets to cover its short-term liabilities, but with limited buffer. The company's free cash flow of $1.45 million reflects its ability to generate cash after capital expenditures, though it is modest in scale.

In terms of profitability, Energia Latina SA reports a return on equity (ROE) of 1.85% and a return on assets (ROA) of 1.01%. These figures are below the typical thresholds for strong performance in the Independent Power Producers industry, where ROE and ROA are key metrics for evaluating efficiency and profitability. The company's net income of $1.57 million and operating income of $3.7 million suggest a stable but not robust earnings profile.

The company's revenue is concentrated in a single business segment, as disclosed in its financials, with no material geographic diversification reported. This lack of diversification may expose the company to regional economic or regulatory risks. No specific geographic breakdown is provided in the available data, but the company's operations are likely centered in Latin America, given its name and classification.

Energia Latina SA's growth trajectory is modest, with no significant revenue growth reported in the latest financial period. The company's capital expenditures of $1.63 million indicate ongoing investment in infrastructure, but the scale is relatively small compared to its total assets of $155.5 million. The company's outlook for the current fiscal year is stable, with no major changes expected in revenue or operating performance.

The company's risk profile includes a medium liquidity risk, primarily due to its current ratio of 0.93, which suggests limited short-term liquidity. The risk assessment also notes that the company has negative net cash after subtracting total debt, which could pose a challenge in the event of unexpected cash flow disruptions. The dilution risk is assessed as low, with no significant dilution expected in the near term, as the number of shares outstanding remains unchanged between basic and diluted shares.

Recent events and filings do not indicate any material changes in the company's operations or financial position. The company's latest financial report, as of the most recent period, shows consistent performance with no major deviations from historical trends. No recent earnings calls or transcripts are available to provide additional insight into management's strategic direction or operational updates.

Cash conversion ratio of 3.24 is well above the 1.83 cohort median, demonstrating strong ability to generate cash from earnings.

Debt-to-equity ratio of 0.41 is slightly better than the 0.43 cohort median, suggesting a relatively conservative capital structure.

Free cash flow turned positive at $5.9 million in FY0, reversing the negative trend seen in the two prior fiscal years.

Return on equity of 1.85% falls into the bottom quartile of the cohort, signaling poor capital efficiency relative to peers.

Net income CAGR of -11.2% over four years highlights a consistent deterioration in profitability despite margin strengths.

High credit risk flag suggests potential difficulties in meeting financial obligations or securing favorable financing terms.