Investment Thesis
1-800 Flowers is operationally unprofitable with -$70.7M operating income and -$82.5M net loss, destroying shareholder value at -42.8% ROE. Critical liquidity stress evidenced by 0.49x quick ratio and inability to cover interest expenses from operations present material solvency risk despite modest positive free cash flow.
Strengths
- Positive operating cash flow of $42.9M and free cash flow of $20.0M despite accounting losses
- Reasonable gross margin of 38.8% demonstrates some pricing power in core retail business
- Moderate leverage with 0.61x debt-to-equity ratio provides some balance sheet cushion
Risks
- Significant operational losses with -$70.7M operating income and negative 5.8% operating margin
- Critically weak quick ratio of 0.49x indicates acute liquidity stress and inability to cover short-term obligations
- Severely negative interest coverage ratio of -86.1x means operating income cannot service debt obligations
- Negative ROE of -42.8% and ROA of -12.1% indicate systematic shareholder value destruction
- Extremely thin free cash flow margin of 1.7% provides minimal buffer for operations or obligations
Key Metrics to Watch
- Path to operating profitability and operating income trajectory
- Quick ratio trend and working capital adequacy for operational needs
- Operating cash flow sustainability and capital allocation discipline
- Debt refinancing schedule and interest coverage recovery
Financial Metrics
Revenue
1.2B
Net Income
-82.5M
EPS (Diluted)
$-1.29
Free Cash Flow
20.0M
Total Assets
679.9M
Cash
50.7M
Profitability Ratios
Gross Margin
38.8%
Operating Margin
-5.8%
Net Margin
-6.8%
ROE
-42.8%
ROA
-12.1%
FCF Margin
1.7%
Balance Sheet & Liquidity
Current Ratio
1.14x
Quick Ratio
0.49x
Debt/Equity
0.61x
Debt/Assets
71.7%
Interest Coverage
-86.06x
Long-term Debt
117.8M
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: 2026-05-09T10:39:30.639365 |
Data as of: 2026-03-29 |
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