Management appears to be utilizing internal cash flow to support growth, though the 13.70% net margin warrants further investigation to ensure alignment with actual cash realization.
| Metric | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Cash from Operations | 129.68K | -615.51K | 2.07M | 624.64K |
| Operating CF Margin % | 2.36% | -16.65% | 19.1% | 10.74% |
| Operating CF Growth % | 121.07% | -129.79% | 230.82% | - |
| Net Income | 990.71K | -290.79K | 1.62M | 1.07M |
| Depreciation & Amortization | 412.09K | 258.18K | 145.4K | 81.55K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 183.67K | -113.9K | -333.95K | -45.94K |
| Working Capital Changes | -1.46M | -469K | 634.8K | -479.02K |
| Change in Receivables | -1.16M | -669.39K | -113.14K | -535.19K |
| Change in Inventory | 9.81K | 194.08K | 351.06K | -588.74K |
| Change in Payables | -529.52K | -67.62K | 263.75K | 696.12K |
| Cash from Investing | -111.53K | -575.34K | -641.88K | -13.28K |
| Capital Expenditures | -146.15K | -315.75K | -212.62K | -13.28K |
| CapEx % of Revenue | 2.66% | 8.54% | 1.96% | 0.23% |
| Acquisitions | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - |
| Other Investing | 34.62K | -259.58K | -429.25K | 0 |
| Cash from Financing | -196.72K | 291.66K | -688.72K | -83.01K |
| Debt Issued (Net) | -182.84K | 552.04K | -119.36K | -54.87K |
| Equity Issued (Net) | 0 | 0 | 0 | 0 |
| Dividends Paid | -130.72K | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 |
| Other Financing | 116.84K | -260.38K | -569.36K | -28.14K |
| Net Change in Cash | -174.73K | -947.32K | 710.08K | 528.4K |
| Free Cash Flow | -16.47K | -931.27K | 1.85M | 611.37K |
| FCF Margin % | -0.3% | -25.19% | 17.13% | 10.51% |
| FCF Growth % | 98.23% | -150.24% | 203.23% | - |
| FCF per Share | -0.00 | -0.12 | 0.23 | 0.08 |
| FCF Conversion (FCF/Net Income) | 0.17x | 1.94x | 1.77x | 0.77x |
| Interest Paid | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 |
European market regulatory exposure
Given the absence of granular cash flow data, investors should monitor the alignment between reported net income and operating cash flow to ensure that the company's 13.70% net margin is supported by actual cash generation rather than non-cash accounting accruals or aggressive revenue recognition practices.
The company's hybrid service-to-product model necessitates a close examination of whether service packages paid in advance are being recognized as revenue before the actual delivery of aesthetic procedures. A significant divergence between net income and operating cash flow would suggest that the reported profitability may be overstated by accounting timing differences rather than operational efficiency.
As the company scales its footprint, the capital intensity of maintaining specialized aesthetic facilities and training centers remains a critical variable, as reported in financial statements, which may impact the company's ability to sustain its current growth trajectory without increasing capital expenditure requirements.
The reliance on physical service centers to drive product sales implies that maintenance capex will likely rise in tandem with geographic expansion. Analysts should investigate whether the company is successfully funding these investments through internal cash flow or if the European market entry will necessitate a shift in capital allocation strategy.
Based on the company's transition into retail healthcare and cosmetics, the efficiency of inventory management is paramount, as reported figures suggest that product shelf life and SKU velocity will directly influence the cash conversion cycle and overall liquidity position of the firm.
The shift toward a retail-heavy revenue mix introduces risks related to inventory obsolescence that were not present in the pure-service model. Investors should monitor whether the company's working capital requirements are expanding disproportionately to revenue, which could indicate a buildup of slow-moving stock in new international markets.
With a debt-to-equity ratio of 1.00%, the company appears to be prioritizing organic growth over external financing, as noted in recent financial disclosures, which suggests that management is currently utilizing internal cash flow to fund its ambitious international expansion and brand-building initiatives.
The lack of significant debt suggests that the company is well-insulated from interest rate volatility, providing a stable foundation for its current 48.37% revenue growth. However, the absence of dividend payments or share repurchases warrants further investigation into whether management intends to maintain this conservative capital structure or if they are preparing for larger, inorganic growth opportunities.
Quick answers to the most common questions about buying EMPG stock.
Empro Group Inc. Ordinary shares (EMPG) generated $0.1M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Empro Group Inc. Ordinary shares (EMPG) reported negative free cash flow of $0.0M in 2024, indicating capital requirements exceeded cash from operations.
Empro Group Inc. Ordinary shares (EMPG) spent $0.1M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, Empro Group Inc. Ordinary shares (EMPG) returned $0.1M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.