Investment Thesis
Coronado Global Resources exhibits severe fundamental deterioration with massive operating losses (-$444.4M), negative free cash flow (-$324.8M), and profitability margins of -22%+ despite 2000%+ revenue growth that appears unsustainable or non-recurring. The company burns cash operationally while requiring substantial capex ($244.8M), threatening its liquidity runway despite current assets covering liabilities at 1.55x.
Strengths
- Substantial revenue increase of 2063.7% YoY indicates significant operational activity expansion
- Current ratio of 1.55x and quick ratio of 1.12x demonstrate adequate short-term liquidity coverage
- Cash position of $173M provides near-term operational buffer
Risks
- Operating losses of -$444.4M and net losses of -$432.1M indicate the company is not yet profitable at scale
- Negative free cash flow of -$324.8M combined with -$80M operating cash burn creates unsustainable cash consumption pattern
- Debt/Equity ratio of 1.06x with $686.7M long-term debt and negative interest coverage of -8.9x indicates inability to service debt from operations
- High capex requirements ($244.8M) relative to operational cash generation suggests capital-intensive business model not yet self-sustaining
- Severely negative ROE (-66.5%) and ROA (-16.5%) demonstrate poor asset utilization and shareholder value destruction
Key Metrics to Watch
- Path to operating cash flow positivity and timeline to profitability
- Cash runway analysis given current burn rate relative to $173M cash balance
- Operating margin improvement trajectory and gross profit realization
- Capital expenditure completion and return on invested capital generation
- Debt refinancing risk and covenant compliance status
Financial Metrics
Revenue
1.9B
Net Income
-432.1M
EPS (Diluted)
$-2.58
Free Cash Flow
-324.8M
Total Assets
2.6B
Cash
173.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-22.8%
Net Margin
-22.2%
ROE
-66.5%
ROA
-16.5%
FCF Margin
-16.7%
Balance Sheet & Liquidity
Current Ratio
1.55x
Quick Ratio
1.12x
Debt/Equity
1.06x
Debt/Assets
75.3%
Interest Coverage
-8.89x
Long-term Debt
686.7M
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: 2026-03-22T18:38:11.413375 |
Data as of: 2025-12-31 |
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