Investment Thesis
Calumet faces existential financial distress with negative stockholders' equity of -$1.0B, indicating technical insolvency and balance sheet deterioration. The company exhibits severely negative profitability across all metrics, negative operating cash flow of -$86.2M, and critical liquidity ratios (current ratio 0.96x), signaling high risk of restructuring or bankruptcy.
Strengths
- Maintains $138.6M cash reserve providing near-term runway
- Net income loss improved 84.8% YoY from prior period
- Operates in essential petroleum refining sector with structural demand
Risks
- Negative stockholders' equity of -$1.0B indicates balance sheet insolvency
- Severely negative profitability: -8.5% gross margin, -16.6% operating margin, -30.8% net margin
- Negative operating cash flow of -$86.2M with $2.3B debt burden indicates inability to service obligations
- Critical liquidity ratios: current ratio 0.96x and quick ratio 0.58x signal inability to cover liabilities
- Negative free cash flow of -$99.4M indicates unsustainable cash burn
Key Metrics to Watch
- Stockholders' equity trend (path to positive from -$1.0B)
- Operating cash flow (must turn positive)
- Current and quick ratios (liquidity sustainability)
- Gross margin improvement (indicates operational turnaround)
- Debt refinancing access and covenant compliance
Financial Metrics
Revenue
1.0B
Net Income
-317.0M
EPS (Diluted)
$-3.64
Free Cash Flow
-99.4M
Total Assets
2.8B
Cash
138.6M
Profitability Ratios
Gross Margin
-8.5%
Operating Margin
-16.6%
Net Margin
-30.8%
ROE
N/A
ROA
-11.5%
FCF Margin
-9.7%
Balance Sheet & Liquidity
Current Ratio
0.96x
Quick Ratio
0.58x
Debt/Equity
N/A
Debt/Assets
128.8%
Interest Coverage
N/A
Long-term Debt
2.3B
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: 2026-05-10T07:21:13.100003 |
Data as of: 2026-03-31 |
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