Investment Thesis
While Borqs demonstrates strong top-line growth at 39% YoY, profitability metrics are severely compressed with a net margin of only 0.4% and minimal ROE/ROA returns. The extremely low cash position ($1.3M) relative to liabilities and capital intensity, combined with severely outdated financial data (2018), presents substantial liquidity risk and limits growth capacity.
Strengths
- Strong revenue growth of 39% YoY demonstrates market demand
- Positive operating cash flow of $6.0M and healthy free cash flow of $5.8M
- Conservative debt levels with debt/equity ratio of 0.11x
Risks
- Net margin of 0.4% with minimal profitability despite scale
- Critically low cash position of $1.3M relative to $78.5M liabilities creates solvency risk
- Financial data is severely outdated (September 2018) - over 5 years old with no current information
- Operating margin of only 3.3% indicates structural profitability challenges
- Zero insider activity in last 90 days raises governance concerns
Key Metrics to Watch
- Current cash balance and liquidity trends
- Net margin expansion and path to sustainable profitability
- Revenue quality and sustainability of 39% growth rate
Financial Metrics
Revenue
142.9M
Net Income
521.0K
EPS (Diluted)
$0.02
Free Cash Flow
5.8M
Total Assets
127.8M
Cash
1.3M
Profitability Ratios
Gross Margin
14.3%
Operating Margin
3.3%
Net Margin
0.4%
ROE
1.1%
ROA
0.4%
FCF Margin
4.1%
Balance Sheet & Liquidity
Current Ratio
1.38x
Quick Ratio
1.20x
Debt/Equity
0.11x
Debt/Assets
61.4%
Interest Coverage
1.98x
Long-term Debt
5.6M
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: 2026-03-21T12:36:14.196438 |
Data as of: 2018-09-30 |
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