Investment Thesis
Advanced Biomed reports strong accounting returns (ROE 65%, ROA 56.2%) and a fortress balance sheet, but negative operating cash flow of -1.4M despite 6.0M net income signals critical quality-of-earnings concerns. Deteriorating profitability (-17.1% net income YoY, -14.3% EPS YoY) combined with undisclosed revenue and minimal insider activity raises red flags about operational sustainability.
Strengths
- Exceptional ROE (65%) and ROA (56.2%) demonstrate high capital efficiency
- Zero debt (Debt/Equity 0.00x) with pristine balance sheet and 7.38x current ratio
- Strong absolute profitability: 6.3M operating income, 6.0M net income, positive EPS
Risks
- Negative operating cash flow (-1.4M) contradicts positive net income—major quality-of-earnings red flag suggesting non-cash accounting gains or working capital deterioration
- Profitability declining sharply (Net Income -17.1% YoY, EPS -14.3% YoY) indicating deteriorating fundamentals
- Revenue data not disclosed—inability to assess gross margins, operating leverage, or true revenue-to-profit relationship for medical lab services firm
Key Metrics to Watch
- Operating cash flow trend—must turn positive to validate profit quality
- Quarterly revenue and gross margin disclosure—critical for sector analysis
- YoY profitability trajectory—declining trend must stabilize or reverse
Financial Metrics
Revenue
N/A
Net Income
6.0M
EPS (Diluted)
$5.21
Free Cash Flow
-1.4M
Total Assets
10.6M
Cash
2.6M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
65.0%
ROA
56.2%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
7.38x
Quick Ratio
7.38x
Debt/Equity
0.00x
Debt/Assets
13.5%
Interest Coverage
N/A
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-23T07:34:52.985776 |
Data as of: 2026-03-31 |
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