Investment Thesis
Harvard Bioscience is operationally unprofitable with -16.5% net margins and negative operating cash flow (-$662K), while carrying excessive leverage at 3.6x Debt/Equity with negative interest coverage. Declining revenue (-8.1% YoY) combined with ongoing losses and cash burn creates material financial distress risk with insufficient runway.
Strengths
- 59% gross margin indicates viable underlying product economics
- 1.99x current ratio provides near-term liquidity cushion
- Still generating $12.2M in positive gross profit despite net losses
Risks
- Negative operating cash flow and free cash flow indicate unsustainable operations
- 3.6x Debt/Equity with -0.3x interest coverage suggests covenant breach and default risk
- Declining revenue trend combined with operating losses indicates competitive deterioration
- $7.1M cash against -$1.1M annual cash burn leaves less than 2 years runway
- ROE of -34.1% represents shareholder value destruction
Key Metrics to Watch
- Operating cash flow trajectory - must turn positive for sustainability
- Revenue stabilization and return to growth
- Debt covenant compliance and refinancing requirements
- Gross margin sustainability under cost pressures
- Cash depletion rate relative to burn
Financial Metrics
Revenue
20.8M
Net Income
-3.4M
EPS (Diluted)
$-0.77
Free Cash Flow
-1.1M
Total Assets
77.9M
Cash
7.1M
Profitability Ratios
Gross Margin
59.0%
Operating Margin
-5.7%
Net Margin
-16.5%
ROE
-34.1%
ROA
-4.4%
FCF Margin
-5.2%
Balance Sheet & Liquidity
Current Ratio
1.99x
Quick Ratio
1.06x
Debt/Equity
3.60x
Debt/Assets
87.1%
Interest Coverage
-0.33x
Long-term Debt
36.2M
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: 2026-05-13T08:34:14.259878 |
Data as of: 2026-03-31 |
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