Investment Thesis
CIMPRESS exhibits critical financial distress with negative stockholders' equity (-524.1M), severe liquidity constraints (current ratio 0.68x), and liabilities exceeding assets by 400M. While the company generates positive operating cash flow (173.2M) and possesses exceptional interest coverage (154.7x), the deteriorated balance sheet and insolvency position present unacceptable restructuring risk that outweighs the modest positive fundamentals.
Strengths
- Positive operating cash flow of 173.2M provides near-term solvency support
- Exceptional interest coverage ratio of 154.7x indicates sufficient debt servicing capacity
- Free cash flow of 98.7M suggests operational discipline despite margin compression
- Net income growth of 16.3% YoY demonstrates core business profitability
Risks
- Negative stockholders' equity of -524.1M indicates technical insolvency and balance sheet deterioration
- Current ratio of 0.68x and quick ratio of 0.51x signal inability to cover short-term obligations with current assets
- Excessive leverage with 1.6B long-term debt against 2.1B total assets and negative equity creates refinancing risk
- Unusually high revenue growth of 3053% YoY suggests acquisition-driven expansion, typically increasing integration and financial risks
- Thin operating margin of 6.7% and net margin of 2.5% provide minimal cushion for operational disruptions
- Long-term debt to cash ratio of 8.5x demonstrates structural debt burden unsustainable without sustained cash generation
Key Metrics to Watch
- Stockholders' equity trajectory and path to positive equity restoration
- Current ratio trend and working capital adequacy
- Operating cash flow sustainability and FCF generation consistency
- Debt reduction progress and refinancing timelines
- Gross margin recovery and operating leverage improvement
Financial Metrics
Revenue
2.8B
Net Income
70.8M
EPS (Diluted)
$2.81
Free Cash Flow
98.7M
Total Assets
2.1B
Cash
189.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
6.7%
Net Margin
2.5%
ROE
N/A
ROA
3.4%
FCF Margin
3.5%
Balance Sheet & Liquidity
Current Ratio
0.68x
Quick Ratio
0.51x
Debt/Equity
N/A
Debt/Assets
122.1%
Interest Coverage
154.68x
Long-term Debt
1.6B
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: 2026-05-06T14:44:49.240817 |
Data as of: 2026-03-31 |
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