Investment Thesis
Century Casinos faces critical financial distress with negative stockholders' equity of -$114.7M indicating technical insolvency, combined with negative operating cash flow and severely inadequate interest coverage of 0.2x, meaning the company cannot service its $328.6M debt burden from operations. Revenue is stagnant with zero YoY growth while net losses persist at -$16.5M, and free cash flow is negative at -$3.9M, creating an unsustainable financial position.
Strengths
- Current ratio of 1.22x provides near-term liquidity buffer above critical levels
- Cash reserves of $60M provide short-term operational flexibility
- Operating income of $11.8M remains positive despite unprofitable net results
Risks
- Negative stockholders' equity of -$114.7M indicates technical insolvency and balance sheet insolvency
- Interest coverage of 0.2x demonstrates inability to service debt obligations from operating income
- Negative operating cash flow of -$1.3M and negative free cash flow of -$3.9M indicate unsustainable cash burn with potential liquidity crisis
- Stagnant revenue growth at 0% combined with persistent net losses and deteriorating financial position
- High leverage with $328.6M long-term debt against negative equity creates default risk
Key Metrics to Watch
- Stockholders equity trend - trajectory toward positive or further deterioration
- Operating cash flow and free cash flow - whether company achieves positive cash generation
- Interest coverage ratio - ability to service debt obligations
- Cash balance depletion rate - runway until liquidity crisis
- Revenue and net income trends - path to profitability or deeper losses
Financial Metrics
Revenue
137.2M
Net Income
-16.5M
EPS (Diluted)
$-0.58
Free Cash Flow
-3.9M
Total Assets
1.1B
Cash
60.0M
Profitability Ratios
Gross Margin
112.3%
Operating Margin
8.6%
Net Margin
-12.0%
ROE
N/A
ROA
-1.5%
FCF Margin
-2.9%
Balance Sheet & Liquidity
Current Ratio
1.22x
Quick Ratio
1.18x
Debt/Equity
N/A
Debt/Assets
102.2%
Interest Coverage
0.15x
Long-term Debt
328.6M
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: 2026-05-10T07:22:46.182956 |
Data as of: 2026-03-31 |
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