Investment Thesis
Generations Bancorp NY is in severe financial distress with massive operating losses (-$1.8M), collapsing revenue (-88.5% YoY), and deeply negative profitability margins (-265% operating, -203% net). The company is burning cash operationally despite showing positive FCF, indicating unsustainable fundamentals and potential solvency concerns for a federally chartered savings institution.
Strengths
- Positive free cash flow of $455K suggests some operational efficiency in capital deployment
- Adequate equity cushion of $35.5M relative to asset base provides some balance sheet support
- Low leverage with zero long-term debt provides flexibility for restructuring or capital raises
Risks
- Severe profitability crisis with $1.4M net loss and negative net margin of -203% indicates core business failure
- Revenue collapse of 88.5% YoY signals fundamental problems in banking operations or customer base erosion
- Negative interest coverage (-0.4x) indicates inability to service debt obligations from operations; as a federally chartered savings institution, this poses regulatory risk
Key Metrics to Watch
- Quarterly revenue trend - must stabilize to avoid continued deterioration
- Operating income return to profitability - currently operating at massive losses
- Regulatory capital ratios and compliance status - critical for federally chartered savings institutions
Financial Metrics
Revenue
684.0K
Net Income
-1.4M
EPS (Diluted)
$-0.65
Free Cash Flow
455.0K
Total Assets
401.8M
Cash
9.8M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-265.4%
Net Margin
-202.6%
ROE
-3.9%
ROA
-0.3%
FCF Margin
66.5%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
91.2%
Interest Coverage
-0.36x
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: 2026-03-25T14:42:10.675907 |
Data as of: 2024-06-30 |
Powered by Claude AI