Investment Thesis
GoHealth is in severe financial distress with a 54.7% YoY revenue collapse, operating losses of -$34.8M, and catastrophic leverage (306.49x debt-to-equity). The company cannot service its $653.1M debt burden with only $2.1M in equity and negative interest coverage of -1.9x, indicating imminent solvency risk.
Strengths
- Positive operating cash flow of $7.0M demonstrates some business cash generation
- Acceptable short-term liquidity with 2.03x current ratio
- $917.9M in total assets provide potential liquidation value
Risks
- Debt-to-equity ratio of 306.49x indicates technical insolvency and bankruptcy risk
- 54.7% YoY revenue decline signals fundamental business model failure
- Negative interest coverage (-1.9x) means company cannot service $653.1M debt from operations, requiring restructuring or asset sales
Key Metrics to Watch
- Revenue stabilization and return to growth
- Operating cash flow sustainability amid losses
- Debt restructuring or covenant violation developments
Financial Metrics
Revenue
11.9M
Net Income
-37.2M
EPS (Diluted)
$-2.36
Free Cash Flow
7.0M
Total Assets
917.9M
Cash
39.9M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-292.0%
Net Margin
-312.0%
ROE
-1,744.3%
ROA
-4.0%
FCF Margin
58.6%
Balance Sheet & Liquidity
Current Ratio
2.03x
Quick Ratio
2.03x
Debt/Equity
306.49x
Debt/Assets
0.0%
Interest Coverage
-1.94x
Long-term Debt
653.1M
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: 2026-05-19T07:15:24.124216 |
Data as of: 2026-03-31 |
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