Investment Thesis
Anterix exhibits severe operational distress masked by non-recurring gains, with negative gross margins (-22.8%), negative operating cash flow (-10.0M), and deteriorating net income (-24.6% YoY) despite reported operating profits that appear anomalous. The extreme profitability ratios (Operating Margin: 1631%, Net Margin: 1587.4%) are unsustainable and indicate one-time gains rather than recurring business strength, while the company burns cash operationally despite minimal revenue of 4.5M.
Strengths
- Strong balance sheet with low leverage (Debt/Equity: 0.00x) and adequate liquidity (Current Ratio: 1.39x)
- Substantial cash reserves of 29.5M provide runway for operations
- Positive ROE (30.6%) and ROA (17.3%) driven by asset base rather than operational efficiency
Risks
- Negative gross margin (-22.8%) indicates core business loses money on each sale
- Negative operating cash flow (-10.0M) reveals cash burn despite reported profitability from likely non-recurring items
- Revenue of only 4.5M is insufficient to support organizational structure; unsustainable unit economics
- Deteriorating net income YoY (-24.6%) suggests one-time gains are eroding while underlying business weakens
- Free cash flow deeply negative (-220.5% margin) with minimal capex spend suggesting distressed operations
Key Metrics to Watch
- Operating cash flow trend and path to positive FCF
- Gross margin recovery and revenue per unit improvements
- Composition of operating income and sustainability of reported profits
- Cash burn rate and runway at current burn levels
- Revenue growth acceleration relative to opex reduction requirements
Financial Metrics
Revenue
4.5M
Net Income
72.1M
EPS (Diluted)
$3.85
Free Cash Flow
-10.0M
Total Assets
417.0M
Cash
29.5M
Profitability Ratios
Gross Margin
-22.8%
Operating Margin
1,631.0%
Net Margin
1,587.4%
ROE
30.6%
ROA
17.3%
FCF Margin
-220.5%
Balance Sheet & Liquidity
Current Ratio
1.39x
Quick Ratio
1.39x
Debt/Equity
0.00x
Debt/Assets
43.4%
Interest Coverage
24,698.33x
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: 2026-03-20T08:04:12.064334 |
Data as of: 2025-12-31 |
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