Investment Thesis
Ameriguard Security Services exhibits severe financial distress with negative stockholders' equity of -$3.9M, indicating the company is technically insolvent. Despite 26.1% revenue growth, the company is burning cash with -$751.3K operating cash flow and a critically low current ratio of 0.27x, suggesting inability to meet near-term obligations. The combination of persistent operating losses, negative net margin of -4.2%, and extreme liquidity constraints presents unacceptable fundamental risk.
Strengths
- Revenue growth of 26.1% YoY demonstrates market demand for services
- Gross margin of 16.1% indicates some pricing power in the core business
- Relatively modest long-term debt of $294.2K limits future refinancing risk
Risks
- Negative stockholders' equity of -$3.9M indicates technical insolvency and equity value destruction
- Operating cash flow of -$751.3K with only $36.0K cash creates severe liquidity crisis and bankruptcy risk
- Current ratio of 0.27x means liabilities exceed current assets by 73%, indicating inability to service short-term obligations
- Operating losses of -$1.8M and negative operating margin of -8.8% suggest core business is not profitable despite top-line growth
- Free cash flow of -$763.6K indicates company consumes cash from operations and cannot fund growth internally
Key Metrics to Watch
- Path to operating profitability and positive operating cash flow
- Resolution of negative equity position through restructuring or capital injection
- Cash runway and likelihood of near-term liquidity crises or covenant violations
Financial Metrics
Revenue
19.9M
Net Income
-845.9K
EPS (Diluted)
$-0.01
Free Cash Flow
-763.6K
Total Assets
8.2M
Cash
36.0K
Profitability Ratios
Gross Margin
16.1%
Operating Margin
-8.8%
Net Margin
-4.2%
ROE
N/A
ROA
-10.3%
FCF Margin
-3.8%
Balance Sheet & Liquidity
Current Ratio
0.27x
Quick Ratio
0.27x
Debt/Equity
N/A
Debt/Assets
147.4%
Interest Coverage
-4.70x
Long-term Debt
294.2K
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: 2026-03-19T17:40:57.645999 |
Data as of: 2025-09-30 |
Powered by Claude AI