Investment Thesis
Bimini Capital demonstrates strong profitability with exceptional net margin of 24.5% and impressive 46% ROE, supported by 43% YoY revenue growth. However, significant financial stress is evident through weak interest coverage of 0.7x, elevated leverage at 2.17x debt-to-equity, and concerning negative operating cash flow relative to net income suggests potential accounting quality issues.
Strengths
- Exceptional net profit margin of 24.5% indicates strong pricing power and cost control
- Robust 46% ROE demonstrates efficient capital deployment despite leverage
- Strong revenue growth of 43% YoY indicates expanding business operations
- Substantial net income swing (+544% YoY) shows improving operational performance
- Positive free cash flow of 2.9M demonstrates underlying business cash generation
Risks
- Critical interest coverage ratio of 0.7x suggests difficulty servicing debt obligations and potential distress
- High leverage at 2.17x debt-to-equity with 27.3M long-term debt against only 12.6M equity raises solvency concerns
- Significant discrepancy between 5.8M net income and 2.9M operating cash flow raises earnings quality concerns
- OTC exchange listing indicates lower liquidity and regulatory oversight compared to major exchanges
- Limited cash position of 12.7M relative to 27.3M long-term debt constrains financial flexibility
Key Metrics to Watch
- Interest coverage ratio trend - critical threshold for financial stability
- Operating cash flow versus net income reconciliation - assess sustainability of earnings
- Debt-to-equity trajectory - monitor deleveraging progress or deterioration
- Quarterly revenue and net income trends - validate 43% growth sustainability
- Cash position and debt maturity schedule - evaluate refinancing risk
Financial Metrics
Revenue
23.7M
Net Income
5.8M
EPS (Diluted)
$0.00
Free Cash Flow
2.9M
Total Assets
129.7M
Cash
12.7M
Profitability Ratios
Gross Margin
N/A
Operating Margin
19.0%
Net Margin
24.5%
ROE
46.0%
ROA
4.5%
FCF Margin
12.2%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
2.17x
Debt/Assets
90.3%
Interest Coverage
0.66x
Long-term Debt
27.3M
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: 2026-03-21T07:28:11.103045 |
Data as of: 2025-12-31 |
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