Investment Thesis
Cryo Cell International demonstrates severe financial distress with negative stockholders' equity of -18.6M, indicating the company is technically insolvent. Despite modest positive operating cash flow, the company faces critical liquidity constraints with a current ratio of 0.59x and only 319K in cash against 80.3M in total liabilities. Deteriorating profitability with -7.7% net margins and declining revenue suggests structural business challenges that pose existential risk to the enterprise.
Strengths
- Positive operating cash flow of 5.5M provides near-term runway despite negative net income
- Free cash flow margin of 16.6% indicates cash-generative operations when excluding capital investments
- Operating income positive at 482.4K shows core business generates some profitability before financing costs
Risks
- Negative stockholders' equity of -18.6M indicates technical insolvency and severe balance sheet deterioration
- Critical liquidity crisis with current ratio of 0.59x and minimal cash reserves of 319K against substantial liabilities
- Deteriorating earnings with negative net margin of -7.7% and declining revenue; interest coverage ratio of 0.2x indicates inability to service debt from operations
- Liabilities exceed assets by 18.6M, creating existential solvency risk and potential covenant violations
Key Metrics to Watch
- Stockholders' equity trend - critical indicator of solvency recovery or further deterioration
- Operating cash flow sustainability - essential lifeline given negative net income and tight liquidity
- Revenue stabilization and gross profitability improvement - currently insufficient to cover operating costs and debt service
Financial Metrics
Revenue
31.6M
Net Income
-2.4M
EPS (Diluted)
$-0.30
Free Cash Flow
5.2M
Total Assets
61.7M
Cash
319.0K
Profitability Ratios
Gross Margin
N/A
Operating Margin
1.5%
Net Margin
-7.7%
ROE
N/A
ROA
-3.9%
FCF Margin
16.6%
Balance Sheet & Liquidity
Current Ratio
0.59x
Quick Ratio
0.57x
Debt/Equity
N/A
Debt/Assets
130.1%
Interest Coverage
0.23x
Long-term Debt
8.4M
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: 2026-03-22T00:54:10.603662 |
Data as of: 2025-11-30 |
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