The firm's reliance on a 15-vessel fleet necessitates ongoing capital expenditure that remains difficult to reconcile with the company's thin 0.27% net margin.
| Metric | Dec'24 | Dec'23 | Dec'22 |
|---|
| Cash from Operations | -24.29M | 654.22K | 518.56K |
| Operating CF Margin % | -3.53% | 0.1% | 0.07% |
| Operating CF Growth % | -3812.89% | 26.16% | - |
| Net Income | 2.05M | 2.96M | 3.23M |
| Depreciation & Amortization | 4.78M | 4.28M | 3.02M |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 0 | -92.66K | -902.15K |
| Other Non-Cash Items | 71.69K | -18.72K | 0 |
| Working Capital Changes | -31.19M | -6.47M | -4.83M |
| Change in Receivables | 7.36M | -16.34M | 863.63K |
| Change in Inventory | 6.49M | -6.02M | -1.8M |
| Change in Payables | -45.25M | 19.32M | 297.44K |
| Cash from Investing | -3.76M | -3.15M | -6.61M |
| Capital Expenditures | -3.75M | -3.15M | -6.61M |
| CapEx % of Revenue | 0.54% | 0.5% | 0.94% |
| Acquisitions | 74.12K | 0 | 0 |
| Investments | - | - | - |
| Other Investing | 0 | 6.13K | 0 |
| Cash from Financing | 38.66M | -2.49M | 8.05M |
| Debt Issued (Net) | 50.9M | -2.81M | 6.92M |
| Equity Issued (Net) | 0 | 0 | 560.99K |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | -12.25M | 320.49K | 561.25K |
| Net Change in Cash | 11.24M | -6.44M | 1.07M |
| Free Cash Flow | -28.04M | -2.5M | -6.09M |
| FCF Margin % | -4.07% | -0.39% | -0.87% |
| FCF Growth % | -1023.86% | 59.01% | - |
| FCF per Share | -1.21 | -0.11 | -0.26 |
| FCF Conversion (FCF/Net Income) | -12.94x | 0.33x | 0.22x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 776.33K | 0 | 177.81K |
Razor-thin margin volatility
Given the absence of reported cash flow data, the relationship between net income and operating cash flow remains opaque, preventing a definitive assessment of earnings quality for TMDE's high-volume, low-margin bunkering operations as described in the company's recent financial disclosures and operational summaries.
The lack of cash flow transparency is particularly concerning given the company's razor-thin 0.27% net margin. Investors should monitor whether reported profits are being converted into actual liquidity or if they are being trapped in working capital, which would be typical for a firm managing a 15-vessel fleet.
As reported in recent corporate filings, TMDE's reliance on a 15-vessel fleet necessitates significant ongoing capital expenditure, which may be difficult to sustain given the company's current financial structure and the inherent volatility of the Southeast Asian maritime fuel supply market.
The maintenance of a physical fleet requires consistent capital reinvestment that may exceed the company's ability to generate internal cash. If the fleet requires modernization to meet decarbonization mandates, the resulting capital intensity could further strain the firm's already vulnerable balance sheet.
Based on the company's operational profile as a fuel reseller, the working capital cycle is likely dominated by the timing of fuel procurement and customer collections, which warrants further investigation into how TMDE manages its liquidity amidst fluctuating global oil prices.
The bunkering business model is inherently working-capital intensive, requiring substantial cash outlays for inventory before revenue is realized. Any delay in receivables or a spike in fuel costs could lead to a liquidity crunch, given the company's limited margin for error.
According to industry standards for bunkering firms, the reliance on trade finance facilities often obscures the true cash flow reality, as these off-balance-sheet arrangements may mask the actual cost of funding the company's extensive fuel inventory and maritime logistics operations.
The 4.17% debt-to-equity ratio may not fully capture the extent of the firm's financing obligations. Analysts should investigate whether these facilities are being used to bridge the gap between cash outflows for fuel and the eventual collection of payments from vessel operators.
Quick answers to the most common questions about buying TMDE stock.
TMD Energy Limited (TMDE) generated $-24.3M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
TMD Energy Limited (TMDE) reported negative free cash flow of $28.0M in 2024, indicating capital requirements exceeded cash from operations.
TMD Energy Limited (TMDE) spent $3.8M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.