Share count
29Mpeak FY2025
← All companies ← KARO Manual KBSX → ← JLHL Construction & Engineering KBR →
KAZR, Skyline Builders Group Holding Limited
We operate in a single segment that represents the Company's core business as an Approved Public Works Contractor undertaking roads and drainage to its customers in Hong Kong.
In our operating history of over 12 years, we have focused on providing civil engineering services in the role of subcontractor and built up our expertise and track record in civil engineering works.
We had over three years business relationship with most of our major customers.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$46M
−5.8% YoY
Vital signs · TTM, with 3-yr average
Revenue $46M 3-yr avg $46M
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- Situation
- Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
- What moves the needle
- Gross margin has run about 5.9% and operating margin about 3.4% through the cycle, a thin spread that turns the result on volume and the cost of what it sells far more than on the price it sets. That margin has held in a narrow 1.9%–3.4% band over the years, so steadiness itself is the evidence — the lever is unit growth and cost discipline, not a moving line. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has sat near the cost of capital (median 10%). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2023–2025
realized figures from each filing · older years to the left| 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2025 | |
|---|---|---|---|---|
| Income statement | ||||
| $45M | $49M | $46M | $46M | RevenueRevenue |
| 3% | 6% | 6% | 6% | Gross marginGross mgn |
| $856K | $2M | $2M | $2M | Operating incomeOp. inc. |
| 1.9% | 3.4% | 3.4% | 3.4% | Operating marginOp. mgn |
| $880K | $930K | $727K | $727K | Net incomeNet inc. |
| 12% | 14% | 20% | 20% | Effective tax rateTax rate |
| Cash flow & returns | ||||
| $2M | ($7M) | ($3M) | ($3M) | Operating cash flowOp. cash |
| $1M | $1M | $803K | $803K | DepreciationDeprec. |
| $156K | ($9M) | ($5M) | ($5M) | Working capital & otherWC & other |
| $196K | $60K | — | $60K | CapexCapex |
| 0.4% | 0.1% | — | 0.1% | Capex / revenueCapex/rev |
| $2M | ($7M) | — | ($3M) | Owner earningsOwner earn. |
| 4.3% | −13.5% | — | −6.7% | Owner earnings marginOE mgn |
| $2M | ($7M) | — | ($3M) | Free cash flowFCF |
| 4.3% | −13.5% | — | −6.7% | Free cash flow marginFCF mgn |
| 14% | 10% | 6% | 6% | ROICROIC |
| 33% | 31% | 8% | 8% | Return on equityROE |
| 33% | 31% | 8% | 8% | Retained to equityRetained/eq |
| Balance sheet | ||||
| — | $324K | $719K | $719K | Cash & investmentsCash+inv |
| — | $4M | $10M | $10M | ReceivablesReceiv. |
| — | $2M | $2M | $2M | Accounts payablePayables |
| — | $2M | $8M | $8M | Operating working capitalOper. WC |
| — | $16M | $22M | $22M | Current assetsCur. assets |
| — | $17M | $20M | $20M | Current liabilitiesCur. liab. |
| — | 0.9× | 1.1× | 1.1× | Current ratioCurr. ratio |
| — | $21M | $28M | $28M | Total assetsAssets |
| $3M | $11M | $12M | $13M | Total debtDebt |
| $3M | $11M | $11M | $12M | Net debt / (cash)Net debt |
| 2.4× | 2.3× | 1.7× | 1.7× | Interest coverageInt. cov. |
| $3M | $3M | $9M | $9M | Shareholders’ equityEquity |
| Per share | ||||
| 28.5M | 28.5M | 28.8M | 28.8M | Shares out (diluted)Shares |
| $1.56 | $1.71 | $1.60 | $1.60 | Revenue / shareRev/sh |
| $0.03 | $0.03 | $0.03 | $0.03 | EPS (diluted)EPS |
| $0.07 | $-0.23 | — | $-0.11 | Owner earnings / shareOE/sh |
| $0.07 | $-0.23 | — | $-0.11 | Free cash flow / shareFCF/sh |
| $0.01 | $0.00 | — | $0.00 | Cap. spending / shareCapex/sh |
| $0.09 | $0.11 | $0.30 | $0.30 | Book value / shareBVPS |
The record, charted
FY2023–2025Each measure over its full record; the current point and the worst year marked.
ROIC
6%low FY2025
Gross margin
6%low FY2023
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2024 the business reported $930K of profit but ($7M) of owner earnings: $7M less than the profit line, taken out by capital spending and the timing of cash.
| FY2024 | FY2023 | |
|---|---|---|
| Reported net income | $930K | $880K |
| Depreciation & amortizationnon-cash charge added back | +$1M | +$1M |
| Working capital & othertiming of cash in and out, other non-cash items | −$9M | +$156K |
| Cash from operations | ($7M) | $2M |
| Capital expenditurecash put back in to keep running and to grow | −$60K | −$196K |
| Owner earnings | ($7M) | $2M |
| Owner-earnings marginowner earnings ÷ revenue | -13% | 4% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .
Much of fiscal 2024's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 20-F · source on SEC EDGAR →
Will it survive?
- ThinOperating income $2M ÷ interest expense $891K
What this means
Operating profit covers interest, but with little room. A bad year, a refinancing at higher rates, or a revenue wobble closes the gap fast.
- How heavy is the debt, net of cash? $12M · 7.6× operating profitHeavy net debtCash $719K − debt $13M
What this means
Netting $719K of cash and short-term investments against $13M of debt leaves $12M owed, about 7.6× a year's operating profit (8.1× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Not enough data
What this means
The filing data didn't include the inputs for this check.
Is it a good business?
- Solid through the cycle3-yr median, range 6%–14%; 6% latest = NOPAT $1M ÷ invested capital $20MIndustry peers: median 9%
What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 3 years (it ran 6% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
- Consumes cashOwner earnings ($3M) = operating cash ($3M) − maintenance capex $60KIndustry peers: median 6%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -7% of revenue this year.
- Are earnings backed by cash? -4.13×Thinly cash-backedCash from ops ($3M) ÷ net income $727K
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Not enough data
What this means
The filing data didn't include the inputs for this check.
- Investing or harvesting? 0.07×HarvestingCapex $60K ÷ depreciation $803K
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 0 of 3 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size MissRevenue ≥ $2B · $46M
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity MissCurrent ratio ≥ 2× · 1.13×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt MissDebt ≤ working capital · $13M vs $3M WC
What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.03/share (latest year $0.03), the averaged base the calculator's gate runs on, and book value is $0.30/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Mar 31, 2025Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$22M
- Cash & short-term investments$719K
- Receivables$10M
- Other current assets$12M
Current liabilities$20M
- Debt due within a year$12M
- Accounts payable$2M
- Other current liabilities$6M
Current ratio1.13×all current assets ÷ what's due · Graham looked for 2×
Quick ratio—inventory untagged this quarter, so withheld rather than shown equal to the current ratio
Cash ratio0.04×strictest: cash alone against what's due
Working capital$3Mthe cushion left after near-term bills
Debt due this year vs. cash$12M due · $719K cash
cash alone won't cover the maturities; it leans on refinancing or operating cash · both figures from the Mar 31, 2025 balance sheet
Cash runway0.2 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate
Deeper floors
Tangible book value$9Mequity stripped of goodwill & intangibles
Net current asset value$3MGraham's net-net: current assets less all liabilities
Debt incl. operating leases$13M$115K of it operating leases
Deferred revenue$2Mcustomer cash collected before delivery; operating float
From the company's latest filing.
Peers, Construction & Engineering
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| BLDTopBuild | $5.4B | 28% | 13.4% | 12% | 9% |
| LGNLegence Corp. | $2.6B | 21% | 2.4% | — | 1% |
| AMRCAmeresco Inc. | $1.8B | 19% | 6.1% | 8% | -10% |
| AGXArgan Inc. | $945M | 17% | 8.9% | 29% | 19% |
| MTRXMatrix Service Company | $769M | 6% | -3.7% | -14% | 2% |
| LMBLimbach Holdings Inc. | $647M | 18% | 2.9% | 10% | 6% |
| BBCPConcrete Pumping Holdings Inc. | $356M | 37% | 12.6% | 6% | 11% |
| KAZRSkyline Builders Group Holding Limited | $46M | 6% | 3.4% | 10% | -7% |
| Group median | — | 18% | 4.8% | 10% | 4% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the home-market price, not the US ADR quote. Skyline Builders Group Holding Limited reports in USD, and every figure here (owner earnings, book value, the share count) is on that ordinary-share basis. Enter the price on the same basis: the local-exchange quote per ordinary share. A US ADR price in dollars bundles the ADR-to-ordinary ratio, so it will not reconcile with these figures and would throw the multiple off.
Skyline Builders Group Holding Limited is profitable, but owner earnings are negative this year because capital spending currently outruns operating cash, a build-out, so the owner-earnings reverse-DCF has no positive base to grow. We read the price from both ends instead: type a price to see the steady-state profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.
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The assumptions
Enter a price to run it.
Owner earnings it must reach—
Margin the price demands—
Owner-earnings margin today−7%
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.
Cite: Owner Scorecard, "Skyline Builders Group Holding Limited (KAZR), the owner's record," https://ownerscorecard.com/c/KAZR, data as of 2026-07-09.
Manual order: ← KARO its page in the Manual KBSX →
Industry order: ← JLHL the Construction & Engineering chapter KBR →