Investment Thesis
Beam Global is severely unprofitable with negative operating margins of -129.7% and negative free cash flow of -7.1M despite $19.2M in revenue, indicating the business model is not generating economic value. The company is burning cash at an unsustainable rate with operating losses of -24.9M against modest revenue, and while equity cushion remains adequate, continued losses will rapidly deplete capital reserves.
Strengths
- Adequate liquidity with current ratio of 1.98x providing short-term operational flexibility
- Low leverage with debt-to-equity of 0.04x providing financial flexibility for restructuring
- Positive shareholder equity of $26.5M provides some buffer before insolvency risk
Risks
- Severe operating losses of -24.9M represent 130% of revenue, indicating fundamental business model failure
- Negative free cash flow of -7.1M annually will deplete cash reserves ($3.3M) within 5-6 months at current burn rate
- Gross margin of only 9.9% leaves minimal room for operating expenses and suggests poor unit economics or pricing power
Key Metrics to Watch
- Operating cash flow trend and path to positive FCF generation
- Gross margin improvement and cost structure rationalization
- Cash runway and burn rate given current liquidity position
Financial Metrics
Revenue
19.2M
Net Income
-24.7M
EPS (Diluted)
$-1.54
Free Cash Flow
-7.1M
Total Assets
44.6M
Cash
3.3M
Profitability Ratios
Gross Margin
9.9%
Operating Margin
-129.7%
Net Margin
-128.6%
ROE
-93.0%
ROA
-55.3%
FCF Margin
-36.9%
Balance Sheet & Liquidity
Current Ratio
1.98x
Quick Ratio
0.97x
Debt/Equity
0.04x
Debt/Assets
40.5%
Interest Coverage
-6,220.75x
Long-term Debt
1.2M
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: 2026-03-20T21:38:11.881916 |
Data as of: 2025-09-30 |
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