Investment Thesis
BrightView faces acute financial distress with an interest coverage ratio of 0.3x, unable to service its $824M debt burden from operating income. The company burns cash operationally (-$31M FCF) with critically low liquidity ($10.1M), creating imminent refinancing risk and suggesting likely covenant violations or restructuring within months.
Strengths
- Positive operating cash flow of $82.3M demonstrates underlying cash generation capability
- Massive revenue growth of 5077% YoY indicates successful market consolidation through acquisition
- Current ratio of 1.23x provides near-term liquidity buffer for operations
Risks
- Interest coverage ratio of 0.3x indicates operating income cannot cover debt service, signaling covenant default risk
- Negative free cash flow of -$31.2M against only $10.1M cash - approximately 3 months operational runway at current burn
- Net unprofitable despite positive operations with razor-thin 0.7% margins - debt burden unsustainable without major operational improvement
Key Metrics to Watch
- Interest coverage ratio and debt covenant compliance
- Free cash flow trend and cash balance depletion rate
- Operating margin expansion required to sustain debt service
Financial Metrics
Revenue
1.3B
Net Income
-13.5M
EPS (Diluted)
$-0.33
Free Cash Flow
-31.2M
Total Assets
3.4B
Cash
10.1M
Profitability Ratios
Gross Margin
19.1%
Operating Margin
0.7%
Net Margin
-1.0%
ROE
-1.1%
ROA
-0.4%
FCF Margin
-2.4%
Balance Sheet & Liquidity
Current Ratio
1.23x
Quick Ratio
1.22x
Debt/Equity
0.66x
Debt/Assets
48.2%
Interest Coverage
0.33x
Long-term Debt
823.9M
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: 2026-05-07T08:16:05.717142 |
Data as of: 2026-03-31 |
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