Khanh Hoa Water Supply and Sewerage JSC

Khanh Hoa Water Supply and Sewerage JSC maintains a relatively strong liquidity position, with a current ratio of 1.98, indicating that it has sufficient current assets to cover its current liabilities. However, the company's free cash flow is negative at -14,202,022,870 VND, primarily due to significant capital expenditures of -57,876,369,060 VND, which suggests ongoing investment in infrastructure. The company's cash and equivalents amount to 31,616,999,450 VND, but this is offset by long-term debt of 111,133,669,520 VND, resulting in a net cash position that is negative after subtracting total debt.

In terms of profitability, the company's return on equity (ROE) is 6.2%, and its return on assets (ROA) is 4.05%. These figures are in line with the industry's preferred metrics, which emphasize stable returns and efficient asset utilization. The company's operating income of 27,097,131,290 VND and net income of 23,847,880,420 VND reflect a healthy margin, although the gross profit margin of 26.03% (29,471,073,420 VND / 113,235,521,290 VND) suggests that the company is managing its costs effectively.

The company's revenue is concentrated in a single geographic region, Khanh Hoa province, which exposes it to regional economic and regulatory risks. There are no disclosed segments beyond this geographic concentration, and the company does not report revenue by product or service line. This lack of diversification could limit its ability to adapt to local market changes or regulatory shifts.

Looking ahead, the company's growth trajectory is expected to be moderate, with a focus on maintaining and expanding its infrastructure. The capital expenditures of -57,876,369,060 VND indicate a commitment to long-term investments, which could support future revenue growth. However, the negative free cash flow suggests that the company may need to rely on external financing to fund these investments.

The company's risk profile is characterized by medium liquidity risk and low dilution potential. The debt-to-equity ratio of 0.29 indicates a conservative capital structure, with a manageable level of leverage. However, the negative net cash position after subtracting total debt raises concerns about short-term liquidity. The company's risk assessment also highlights the need to monitor its liquidity position closely, particularly in light of its ongoing capital expenditures.

Recent events and filings do not indicate any significant changes in the company's operations or financial strategy. The company's latest financial report, filed under market data, provides a comprehensive overview of its financial position and operational performance. There are no recent transcripts or filings that suggest a material change in the company's direction or risk profile.

Operating and net margins significantly exceed Water & Related Utilities cohort medians, indicating superior profitability.

Free cash flow surged 615.1% year-over-year to 51.8 billion VND, demonstrating strong cash generation.

Revenue grew at a 10.2% CAGR over four years, showing consistent top-line expansion.

Net income CAGR of 28.4% over four years highlights robust bottom-line growth trajectory.

Debt-to-equity ratio of 0.29 is below the cohort median of 0.44, suggesting lower financial leverage risk.

Recent year-over-year revenue growth slowed to 4.7%, indicating decelerating top-line momentum.

Net income growth decelerated to just 1.8% year-over-year, signaling weakening profitability trends.

Medium liquidity and credit risk flags suggest potential challenges in financial stability.