Investment Thesis
Altex Industries is in severe operational distress with nearly non-existent revenue of $7K, massive operating losses (-$93K), and negative cash flow (-$32K). The company is burning through its minimal cash position while generating losses that dwarf revenue, indicating fundamental business failure in its crude petroleum and natural gas operations.
Strengths
- Strong liquidity position with $2.5M cash representing 93% of total assets
- Moderate current and quick ratios of 2.0x indicate short-term payment capability
- Zero long-term debt eliminates refinancing risk
Risks
- Revenue has collapsed to $7K with 21.7% YoY decline, indicating near-zero business activity
- Operating losses of -$93K against $7K revenue represent -1328.6% operating margin
- Negative operating and free cash flow of -$32K with current cash burn rate unsustainable without business revival
- Net losses of -$30K and negative ROE/ROA demonstrate value destruction
- No insider trading activity in 90 days suggests potential loss of confidence from management
Key Metrics to Watch
- Quarterly revenue trend and path to profitability
- Monthly cash burn rate and remaining cash runway
- Operating cash flow sustainability and break-even timeline
Financial Metrics
Revenue
7.0K
Net Income
-30.0K
EPS (Diluted)
$0.00
Free Cash Flow
-32.0K
Total Assets
2.7M
Cash
2.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-1,328.6%
Net Margin
-428.6%
ROE
-2.3%
ROA
-1.1%
FCF Margin
-457.1%
Balance Sheet & Liquidity
Current Ratio
2.00x
Quick Ratio
2.00x
Debt/Equity
0.00x
Debt/Assets
51.4%
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: 2026-03-19T18:06:45.891502 |
Data as of: 2025-12-31 |
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