Investment Thesis
While CLEV demonstrates exceptional profitability margins (98.1% gross, 30.3% net) and positive cash flow generation, the company faces severe financial distress with negative stockholders' equity of -605K and critically weak liquidity (0.07x current ratio). The combination of negative book value, minimal revenue scale, and unsustainable balance sheet structure presents unacceptable financial risk despite operational profitability.
Strengths
- Exceptional gross margin of 98.1% indicates strong pricing power and/or low cost of goods sold
- Positive operating cash flow of 28.6K with 52% FCF margin demonstrates cash generation ability
- High operating margin of 34.4% shows effective cost control on operating expenses
Risks
- Negative stockholders' equity of -605K indicates the company is technically insolvent on a book value basis
- Critically low current ratio of 0.07x and quick ratio of 0.05x signal severe liquidity crisis and inability to meet short-term obligations
- Declining revenue (-9.6% YoY) suggests deteriorating business demand despite operational profitability
Key Metrics to Watch
- Total liabilities trend and balance sheet repair efforts to reduce negative equity
- Revenue stabilization and recovery from YoY decline
- Cash burn rate and sustainability of current ratio given minimal cash position
Financial Metrics
Revenue
55.0K
Net Income
16.7K
EPS (Diluted)
$0.00
Free Cash Flow
28.6K
Total Assets
46.2K
Cash
29.4K
Profitability Ratios
Gross Margin
98.1%
Operating Margin
34.4%
Net Margin
30.3%
ROE
N/A
ROA
36.1%
FCF Margin
52.0%
Balance Sheet & Liquidity
Current Ratio
0.07x
Quick Ratio
0.05x
Debt/Equity
N/A
Debt/Assets
0.0%
Interest Coverage
1.84x
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: 2026-03-22T11:42:10.994129 |
Data as of: 2025-10-31 |
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