Investment Thesis
FutureFuel is experiencing severe operational distress with 60.7% YoY revenue collapse and a negative gross margin of -49.6%, indicating fundamental business model failure rather than temporary cyclicality. The company burns $25.4M in free cash flow annually against a $22.4M cash balance, providing approximately 10-11 months of runway without immediate operational recovery or capital injection.
Strengths
- Minimal leverage with 0.00x Debt/Equity ratio and $37.1M total liabilities provides financial flexibility
- Strong liquidity position with 4.79x current ratio and $22.4M cash provides near-term operational cushion
- Substantial asset base of $179.0M and $141.9M stockholders equity preserves potential going-concern value
Risks
- Negative gross margin of -49.6% indicates company loses money on every unit sold, reflecting structural operational failure
- Negative free cash flow of -$25.4M annually with $22.4M cash creates critical liquidity crisis within 10-11 months
- Revenue collapse of 60.7% YoY paired with net income deterioration of 418.6% YoY suggests accelerating business deterioration
Key Metrics to Watch
- Quarterly gross margin trend and path to profitability per unit
- Monthly cash burn rate and actual cash runway remaining
- Operating cash flow stabilization and quarterly revenue stabilization indicators
Financial Metrics
Revenue
32.0M
Net Income
-20.6M
EPS (Diluted)
$-0.47
Free Cash Flow
-25.4M
Total Assets
179.0M
Cash
22.4M
Profitability Ratios
Gross Margin
-49.6%
Operating Margin
-65.2%
Net Margin
-64.4%
ROE
-14.5%
ROA
-11.5%
FCF Margin
-79.4%
Balance Sheet & Liquidity
Current Ratio
4.79x
Quick Ratio
3.02x
Debt/Equity
0.00x
Debt/Assets
20.7%
Interest Coverage
-595.51x
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: 2026-05-13T08:26:15.124495 |
Data as of: 2026-03-31 |
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