Investment Thesis
ALICO operates with severely negative unit economics (gross margin -140.3%, operating margin -226.6%) and declining revenues while burning cash operationally (-$4.8M OCF, -$6.0M FCF). Reported net income appears driven entirely by non-operating gains rather than sustainable business operations. While the strong balance sheet ($52.9M cash, 9.63x current ratio) provides a cushion, the core agricultural business is fundamentally unprofitable and non-viable in its current state.
Strengths
- Fortress balance sheet with $52.9M cash and 9.63x current ratio providing operational runway
- Moderate leverage at 0.81x Debt/Equity with financial flexibility for restructuring
- Assets of $199.9M provide potential sale or dividend opportunities if liquidation becomes necessary
Risks
- Core business is operationally insolvent with negative gross and operating margins spanning entire P&L
- Negative operating and free cash flow (-$4.8M and -$6.0M respectively) indicate persistent capital burn
- Revenue declining -5.5% YoY in capital-intensive agricultural sector with deteriorating unit economics and limited turnaround visibility
Key Metrics to Watch
- Operating cash flow inflection point and path to positive OCF
- Gross margin stabilization and revenue growth resumption
- Sustainability of non-operating income sources driving reported profitability
Financial Metrics
Revenue
7.2M
Net Income
7.9M
EPS (Diluted)
$1.03
Free Cash Flow
-6.0M
Total Assets
199.9M
Cash
52.9M
Profitability Ratios
Gross Margin
-140.3%
Operating Margin
-226.6%
Net Margin
109.3%
ROE
7.7%
ROA
4.0%
FCF Margin
-83.2%
Balance Sheet & Liquidity
Current Ratio
9.63x
Quick Ratio
9.39x
Debt/Equity
0.81x
Debt/Assets
46.4%
Interest Coverage
-8.51x
Long-term Debt
82.7M
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: 2026-05-13T07:42:16.016771 |
Data as of: 2026-03-31 |
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