Investment Thesis
EvoAir Holdings exhibits severe operational dysfunction with massive net losses (-$978K) despite tiny revenue ($20.5K), indicating a pre-revenue or failed business model. Critical liquidity crisis with current ratio of 0.14x and minimal cash ($74.9K) creates immediate solvency concerns. The company is burning cash operationally (-$34.8K) while generating economically meaningless metrics due to scale distortion.
Strengths
- Positive operating income of $16.7K suggests some cost control
- Minimal debt with 0.00x debt-to-equity ratio reduces financial leverage risk
- Stockholders' equity of $41.4M exceeds liabilities, providing liquidation cushion
Risks
- Severe liquidity crisis with 0.14x current ratio and only $74.9K cash against $3.5M liabilities
- Massive operating losses (-$978.1K net income) with -4782.9% net margin indicating fundamental business failure
- Negative operating cash flow (-$34.8K) and negative free cash flow (-$50.1K) demonstrate inability to generate sustainable cash
- Suspicious data freshness date (2039-08-31) raises serious data integrity concerns
- Zero insider activity over 90 days suggests management disengagement or distress
Key Metrics to Watch
- Operating cash flow trend - critical for bankruptcy risk assessment
- Cash balance runway - essential given $74.9K cash and negative burn
- Revenue quality and sustainability - $20.5K is below meaningful operational scale
- Working capital changes and accounts payable aging - key to liquidity solvency
Financial Metrics
Revenue
20.5K
Net Income
-978.1K
EPS (Diluted)
$-0.04
Free Cash Flow
-50.1K
Total Assets
45.0M
Cash
74.9K
Profitability Ratios
Gross Margin
-10.9%
Operating Margin
81.7%
Net Margin
-4,782.9%
ROE
-2.4%
ROA
-2.2%
FCF Margin
-244.9%
Balance Sheet & Liquidity
Current Ratio
0.14x
Quick Ratio
0.04x
Debt/Equity
0.00x
Debt/Assets
7.9%
Interest Coverage
2,786.17x
Long-term Debt
N/A
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: 2026-03-24T15:30:11.459700 |
Data as of: 2039-08-31 |
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