For those of you considering investing in Choppies

This is a warning before you invest

Author

Boago Sephutho
September 16, 2024

Hello there, this is a short article regarding Choppies about their financial data, here’s the report:

New minor risk - Financial data availability

The company's latest financial reports are more than 6 months old.

Last reported fiscal period ended December 2023.

This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts.

Currently, the following risks have been identified for the company:

Minor Risks

High level of debt (224% net debt to equity).Latest financial reports are more than 6 months old (reported December 2023 fiscal period end).Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past.Market cap is less than US$100m (P940.6m market cap, or US$70.7m).

source: simplywall.st 

As you can see Choppies has a high level of debt which is actually higher than its equity, it is P470 million in debt while having P122 million equity. Equity is the assets owned by the company while company debt is often seen as leverage for growth.

When a company has high debts than its equity is actually risky and can have negative impact on the dividends of the shareholders. So if you’re going to invest in Choppies bear in mind of this minor risk.