Investment Thesis
Broadway Financial is experiencing severe operational deterioration with revenue collapsing 99.7% YoY and interest coverage of only 0.2x, indicating inability to service interest obligations from operating income. Despite positive net income and solid equity, the financial institution faces structural stress with near-zero returns on capital (ROE 0.4%, ROA 0.1%), suggesting fundamental viability concerns.
Strengths
- Solid stockholders equity base of $262.5M provides capital cushion
- No long-term debt with 0.00x debt-to-equity ratio reduces default risk
- Positive operating and free cash flow generation of $1.1M
Risks
- Catastrophic revenue decline of 99.7% YoY signals collapsed business operations
- Interest coverage ratio of 0.2x indicates operating income cannot cover interest expenses; unsustainable for financial institution
- Negligible returns on equity (0.4%) and assets (0.1%) demonstrate severely impaired capital productivity
- Data quality concerns with reported margins (3243% operating margin, 2634% net margin) suggest potential reporting irregularities
Key Metrics to Watch
- Interest coverage ratio and trend in interest expense relative to operating income
- Next quarter revenue and net interest margin stabilization
- Deposit levels and funding stability given financial institution stress signals
- Capital adequacy ratios and regulatory compliance status
Financial Metrics
Revenue
44.0K
Net Income
1.2M
EPS (Diluted)
$0.05
Free Cash Flow
1.1M
Total Assets
1.4B
Cash
26.6M
Profitability Ratios
Gross Margin
N/A
Operating Margin
3,243.2%
Net Margin
2,634.1%
ROE
0.4%
ROA
0.1%
FCF Margin
2,486.4%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
81.6%
Interest Coverage
0.20x
Long-term Debt
N/A
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: 2026-05-16T06:17:53.717898 |
Data as of: 2026-03-31 |
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