Investment Thesis
American Rebel Holdings faces severe operational distress with collapsing profitability, negative cash flows, and acute liquidity constraints. The company is burning cash at an unsustainable rate while generating minimal revenue, with negative operating margins exceeding -150% and current ratio of 0.34x indicating inability to meet short-term obligations.
Strengths
- Positive gross profit of $59.9K demonstrates some revenue conversion capability
- Limited Form 4 insider activity suggests minimal related-party concerns
- Modest asset base of $31.7M provides some liquidation value floor
Risks
- Critical liquidity crisis with current ratio of 0.34x and only $722.2K cash against $28.4M liabilities
- Severe revenue decline of -28.6% YoY combined with massive net losses of -$28.4M
- Negative free cash flow of -$5.0M indicates company is unsustainable without external financing
- Debt/Equity ratio of 1.15x with negative interest coverage of -25.6x signals debt service distress
- Deteriorating profitability with gross margin of 0.8% and operating margin of -150%
Key Metrics to Watch
- Operating cash flow trend and path to cash flow breakeven
- Revenue stabilization and gross margin improvement
- Debt refinancing activity and covenant compliance status
- Cash position and runway to funding requirements
- Working capital management and current ratio improvement
Financial Metrics
Revenue
7.2M
Net Income
-28.4M
EPS (Diluted)
$-113.30
Free Cash Flow
-5.0M
Total Assets
31.7M
Cash
722.2K
Profitability Ratios
Gross Margin
0.8%
Operating Margin
-150.0%
Net Margin
-393.1%
ROE
-841.5%
ROA
-89.6%
FCF Margin
-68.8%
Balance Sheet & Liquidity
Current Ratio
0.34x
Quick Ratio
0.21x
Debt/Equity
1.15x
Debt/Assets
89.4%
Interest Coverage
-25.59x
Long-term Debt
3.9M
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: 2026-03-20T03:20:14.708387 |
Data as of: 2025-09-30 |
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