Investment Thesis
CoJax Oil & Gas is a severely distressed company with fundamental operational failures that require immediate restructuring or exit. The company is burning cash with negative operating margins exceeding 64%, zero cash reserves despite ongoing losses, and critically insufficient liquidity (0.17x current ratio) that threatens near-term solvency.
Strengths
- Positive operating cash flow of 31.9K suggests some underlying operational activity
- Modest positive free cash flow of 31.9K indicates minimal capital intensity
- Low absolute long-term debt of 21.1K limits refinancing risk
Risks
- Severe liquidity crisis with current ratio of 0.17x and zero cash equivalents; company cannot meet short-term obligations
- Catastrophic profitability with -64.6% net margin and -64.4% operating margin indicating structural business model failure
- Negative returns on equity (-6.0%) and assets (-5.0%) demonstrate value destruction and inability to generate returns on shareholder capital
- Revenue of only 784.7K annually is insufficient to support 1.8M in liabilities with zero cash reserves
Key Metrics to Watch
- Cash position and liquidity runway - critical for survival
- Quarterly revenue trends - any decline accelerates insolvency
- Operating expense structure - immediate cost reduction necessary for viability
Financial Metrics
Revenue
784.7K
Net Income
-506.6K
EPS (Diluted)
$-0.04
Free Cash Flow
31.9K
Total Assets
10.2M
Cash
0.0
Profitability Ratios
Gross Margin
N/A
Operating Margin
-64.4%
Net Margin
-64.6%
ROE
-6.0%
ROA
-5.0%
FCF Margin
4.1%
Balance Sheet & Liquidity
Current Ratio
0.17x
Quick Ratio
0.17x
Debt/Equity
0.00x
Debt/Assets
17.3%
Interest Coverage
-0.14x
Long-term Debt
21.1K
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: 2026-03-22T10:50:11.189461 |
Data as of: 2025-09-30 |
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