Investment Thesis
Envirotech Vehicles is in severe financial distress with collapsing revenues (-34.7% YoY), massive operating losses (-$24.6M), and negative cash flow (-$6.3M operating, -$6.5M free). The company is unprofitable across all metrics with negative margins exceeding -700% and rapidly depleting cash reserves ($77.6K), making insolvency a material near-term risk absent immediate capital injection or dramatic operational turnaround.
Strengths
- Maintains positive stockholders' equity of $1.9M providing minimal cushion
- Total assets of $18.2M provide some liquidation value
- No insider selling activity in last 90 days suggests management has not abandoned confidence
Risks
- Critical liquidity crisis: only $77.6K cash against $16.3M liabilities and current ratio of 0.97x indicates inability to meet near-term obligations
- Severe revenue contraction of 34.7% YoY with negative gross margin of -36.4% indicates fundamental business model failure or existential operational issues
- Massive operating losses of $24.6M with interest coverage of -4918.9x indicate company cannot service $2.9M long-term debt; bankruptcy risk is high within 12 months at current cash burn rate
- Negative free cash flow of -$6.5M annually unsustainable; at current burn rate, existing cash depleted in ~5 weeks
Key Metrics to Watch
- Monthly cash burn rate and path to positive operating cash flow
- Revenue stabilization and gross margin recovery to positive territory
- Debt restructuring or covenant waiver negotiations with lenders
- Capital raise events or asset sales to extend runway
Financial Metrics
Revenue
3.5M
Net Income
-25.5M
EPS (Diluted)
$-0.23
Free Cash Flow
-6.5M
Total Assets
18.2M
Cash
77.6K
Profitability Ratios
Gross Margin
-36.4%
Operating Margin
-712.9%
Net Margin
-740.3%
ROE
-1,371.6%
ROA
-140.4%
FCF Margin
-187.6%
Balance Sheet & Liquidity
Current Ratio
0.97x
Quick Ratio
0.66x
Debt/Equity
1.54x
Debt/Assets
89.8%
Interest Coverage
-4,918.90x
Long-term Debt
2.9M
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: 2026-03-24T16:00:10.576651 |
Data as of: 2025-09-30 |
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