Investment Thesis
Despite a staggering 73,662% revenue increase, Bridgford Foods is operationally unprofitable with an operating loss of $7.1M and negative free cash flow of $2.3M, indicating the revenue growth (likely acquisition-driven) failed to generate profitability. With only $830K in cash reserves and a negative operating cash burn rate, the company faces a liquidity crisis within months unless fundamental operational turnaround occurs.
Strengths
- Strong balance sheet with low leverage (0.06x Debt/Equity) and solid equity base of $109.8M
- Good current ratio of 2.41x indicating nominal current asset coverage
- Acceptable gross margin of 21% suggests reasonable product pricing and cost structure
Risks
- Negative free cash flow of $2.3M with only $830K cash reserves creates unsustainable 4-month runway
- Operating and net losses indicate integration of revenue growth failed to achieve profitability; net income deteriorated 295% YoY
- Negative operating cash flow of $1.8M despite $105.4M revenue suggests severe working capital management or fundamental operational dysfunction
Key Metrics to Watch
- Path to operating profitability and positive operating cash flow in next 2-3 quarters
- Cash burn rate and remaining cash runway
- Gross margin sustainability and SG&A expense reduction initiatives
Financial Metrics
Revenue
105.4M
Net Income
-5.8M
EPS (Diluted)
$-0.64
Free Cash Flow
-2.3M
Total Assets
145.3M
Cash
830.0K
Profitability Ratios
Gross Margin
21.0%
Operating Margin
-6.7%
Net Margin
-5.5%
ROE
-5.3%
ROA
-4.0%
FCF Margin
-2.2%
Balance Sheet & Liquidity
Current Ratio
2.41x
Quick Ratio
0.96x
Debt/Equity
0.06x
Debt/Assets
24.5%
Interest Coverage
-41.39x
Long-term Debt
6.6M
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: 2026-06-03T07:40:04.591548 |
Data as of: 2026-04-17 |
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