Investment Thesis
Chicago Rivet & Machine is operationally insolvent with consistent losses, zero revenue growth, and severe negative cash burn of $742.5K annually. The company's 14% gross margin is unsustainably thin, and at current cash depletion rates, liquidity will be exhausted within approximately 24 months absent operational turnaround.
Strengths
- Zero long-term debt provides unencumbered balance sheet
- Strong short-term liquidity ratios (current ratio 3.67x, quick ratio 1.90x)
- Equity-rich capitalization with stockholders' equity of $18.4M
Risks
- Operating losses (-$381.6K) and negative operating cash flow (-$649.5K) indicate fundamental business viability problems
- Zero year-over-year revenue growth ($6.9M flat) suggests market share loss or demand collapse
- Negative free cash flow (-$742.5K) will deplete $1.4M cash reserves in ~2 years without profitability turnaround
- Gross margin of 14% is critically thin with no evident pricing power or cost structure improvement pathway
- Zero insider Form 4 filings in past 90 days indicates no management confidence
Key Metrics to Watch
- Operating cash flow trend and path to positive territory
- Gross margin expansion pathway to achieve operational break-even
- Revenue stabilization and return to positive growth
- Cash balance depletion rate relative to runway
- Operating loss narrowing and timeline to EBITDA positivity
Financial Metrics
Revenue
6.9M
Net Income
-362.0K
EPS (Diluted)
$0.00
Free Cash Flow
-742.5K
Total Assets
23.9M
Cash
1.4M
Profitability Ratios
Gross Margin
14.0%
Operating Margin
-5.6%
Net Margin
-5.3%
ROE
-2.0%
ROA
-1.5%
FCF Margin
-10.8%
Balance Sheet & Liquidity
Current Ratio
3.67x
Quick Ratio
1.90x
Debt/Equity
0.00x
Debt/Assets
22.7%
Interest Coverage
N/A
Long-term Debt
0.0
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: 2026-05-10T07:24:23.775795 |
Data as of: 2026-03-31 |
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