Growth Ratio Summary

Growth Score : 4.80

The growth ratios present a mixed outlook. While revenue and asset growth rates are strong, indicating expansion and increased investment, declines in operating profit, earnings per share, and net income growth raise concerns about profitability and efficiency. Balancing growth with profitability is essential to ensure sustainable long-term performance.

Financial Ratio Summary

Financial Score : 2.40

The financial ratios point to some areas of concern. While cash earnings per share are moderate, adjusted earnings per share and book value per share are low, indicating potential issues with profitability and asset valuation. Additionally, low dividend per share and high capital expenditures suggest challenges in returning value to shareholders. A strategic focus on improving earnings and optimizing capital allocation is needed.

Profitability Ratio Summary

Profitability Score : 9.40

The profitability ratios show strong performance, with high gross profit margin, ROCE, ROE, operating margin and net margin. While ROA is moderate, the overall picture suggests efficient operations and effective cost management. Maintaining these high levels of profitability is vital for sustaining growth and shareholder value.

Efficiency Ratio Summary

Efficiency Score : 4.67

The efficiency ratios reveal mixed operational performance. While days sales in inventory and receivable days are managed effectively, the turnover ratios for fixed assets, inventory, and receivables are concerning, indicating an underutilization of assets and potential issues with sales and collection processes. Focusing on optimizing asset utilization and streamlining operations is crucial to improve efficiency.

Coverage Ratio Summary

Coverage Score : 4.40

The coverage ratios suggest potential challenges in meeting financial obligations. While the interest coverage ratio indicates some ability to cover interest expenses, it is not particularly strong. The equity dividend coverage ratio is low, indicating a limited capacity to cover dividend payments with available equity. Strengthening earnings and managing debt effectively are crucial.

Solvency Ratio Summary

Solvency Score : 9.00

The solvency ratios present a mixed picture, reflecting both strengths and weaknesses in the company's long-term financial stability. While the debt to equity and debt to asset ratios indicate a reasonable level of debt relative to equity and assets, the equity ratio suggests a reliance on debt financing. Maintaining a balanced capital structure is crucial to avoid over-leveraging, especially in the capital-intensive construction and engineering sector.

Liquidity Ratio Summary

Liquidity Score : 2.00

The liquidity position is weak, indicating potential difficulties in meeting short-term obligations. The weighted average method highlights consistently low current, quick, cash, and operating cash flow ratios over the past five years. This suggests a need to improve working capital management to ensure sufficient liquid assets are available. While the company may be focusing on long-term investments, neglecting short-term liquidity could pose risks.