Investment Thesis
Consumers Bancorp faces severe operational challenges with a catastrophic 91.2% YoY revenue decline, indicating fundamental business deterioration or accounting adjustments. Despite maintaining profitability with an 18.5% net margin, the extremely low ROA of 0.4% and ROE of 6.3% suggest poor capital efficiency and asset quality issues typical of distressed financial institutions. The weak interest coverage ratio of 0.5x raises concerns about the sustainability of current profitability levels.
Strengths
- Positive free cash flow of 5.5M with healthy 18.7% FCF margin demonstrates cash generation capability
- Maintained profitability with 5.4M net income despite massive revenue contraction
- Zero debt-to-equity ratio eliminates financial leverage risk and provides balance sheet stability
Risks
- Catastrophic 91.2% YoY revenue decline indicates severe operational or structural problems requiring urgent investigation
- Critically low ROA of 0.4% and ROE of 6.3% signal severe asset quality issues or non-performing loan problems common in troubled banks
- Interest coverage ratio of 0.5x suggests current profitability may be unsustainable and vulnerable to margin compression
Key Metrics to Watch
- Non-performing asset ratio and loan loss provisions to assess actual asset quality
- Core deposit trends and net interest margin sustainability
- Regulatory capital ratios and any enforcement actions or consent orders
Financial Metrics
Revenue
29.2M
Net Income
5.4M
EPS (Diluted)
$1.71
Free Cash Flow
5.5M
Total Assets
1.2B
Cash
12.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
21.8%
Net Margin
18.5%
ROE
6.3%
ROA
0.4%
FCF Margin
18.7%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
92.9%
Interest Coverage
0.51x
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: 2026-03-21T23:54:11.088128 |
Data as of: 2025-12-31 |
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