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Macau E&M Holding (HKSE:01408) Financial Strength : 7 (As of Jun. 2024)


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What is Macau E&M Holding Financial Strength?

Macau E&M Holding has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Macau E&M Holding did not have earnings to cover the interest expense. Macau E&M Holding's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.11. As of today, Macau E&M Holding's Altman Z-Score is 2.81.


Competitive Comparison of Macau E&M Holding's Financial Strength

For the Engineering & Construction subindustry, Macau E&M Holding's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Macau E&M Holding's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Macau E&M Holding's Financial Strength distribution charts can be found below:

* The bar in red indicates where Macau E&M Holding's Financial Strength falls into.


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Macau E&M Holding Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Macau E&M Holding's Interest Expense for the months ended in Jun. 2024 was HK$-0.1 Mil. Its Operating Income for the months ended in Jun. 2024 was HK$-6.5 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was HK$11.7 Mil.

Macau E&M Holding's Interest Coverage for the quarter that ended in Jun. 2024 is

Macau E&M Holding did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Macau E&M Holding's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.595 + 11.707) / 110.776
=0.11

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Macau E&M Holding has a Z-score of 2.81, indicating it is in Grey Zones. This implies that Macau E&M Holding is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.81 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Macau E&M Holding  (HKSE:01408) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Macau E&M Holding has the Financial Strength Rank of 7.


Macau E&M Holding Financial Strength Related Terms

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Macau E&M Holding Business Description

Traded in Other Exchanges
N/A
Address
Avenida da Concordia, NO. 175–181, Tower B and D, 10th floor, Edificio Industrial Wang Fu, Macao, MAC
Macau E&M Holding Ltd is an Electrical & Mechanical engineering services works contractor in Macau. The company provides a comprehensive mix of E&M engineering services works based on the contractual needs of its customers in Macau, which involve a combination of the supply and/or installation of LV systems works; HVAC systems work; and ELV systems work, and the relevant testing and commissioning thereof, as well as management and monitoring of quality and delivery of its E&M engineering services, works. It also provides maintenance and repair services to its customers.
Executives
Cheong Ka Wo 2201 Interest of corporation controlled by you
Lo Chao Ieng 2202 Interest of your spouse
Macau E&m Group Limited 2101 Beneficial owner
One Wesco Inc. 2101 Beneficial owner
Leong Kam In 2202 Interest of your spouse
Leong Kam Leng 2201 Interest of corporation controlled by you
Macau E&m Assets Limited 2101 Beneficial owner
Bridge Capital Limited 2101 Beneficial owner
Law Ming Chu 2202 Interest of your spouse
Tam Chi Wai 2201 Interest of corporation controlled by you
Li Sau Fun 2202 Interest of your spouse
Tsang Yuen Wai Samuel 2201 Interest of corporation controlled by you

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