Investment Thesis
INTG faces severe financial distress with negative shareholders' equity of -$84.7M and interest coverage of only 0.9x, indicating the company cannot service its $230.6M debt burden from operating income. Despite modest revenue growth and reasonable operating margins, the company's minimal free cash flow ($884K) and overleveraged balance sheet present existential solvency risks.
Strengths
- Revenue growth of 10.7% YoY demonstrates operational demand in apartment segment
- Operating margin of 16.2% shows reasonable operational efficiency typical of real estate
- Positive operating cash flow of $2.7M and minimal positive net income
Risks
- Interest coverage of 0.9x - operating income insufficient to cover interest expense, indicating debt service stress
- Negative shareholders' equity of -$84.7M represents balance sheet insolvency
- Extremely high leverage with $230.6M long-term debt against only $103.5M total assets and $9.3M cash
- Free cash flow of only $884K provides no cushion for debt reduction or economic downturns
- Net margin of 2.6% despite 16.2% operating margin indicates heavy non-operating expense burden
- Vulnerable to rising interest rates or operational disruptions given minimal financial flexibility
Key Metrics to Watch
- Interest coverage ratio - must improve above 1.5x for sustainability
- Operating cash flow trends - critical for debt service capacity
- Debt refinancing activity and maturity schedule - rollover/default risks
- Net operating income and occupancy rates - direct impact on cash generation
Financial Metrics
Revenue
55.6M
Net Income
1.4M
EPS (Diluted)
$0.67
Free Cash Flow
884.0K
Total Assets
103.5M
Cash
9.3M
Profitability Ratios
Gross Margin
N/A
Operating Margin
16.2%
Net Margin
2.6%
ROE
N/A
ROA
1.4%
FCF Margin
1.6%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
N/A
Debt/Assets
210.1%
Interest Coverage
0.94x
Long-term Debt
230.6M
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: 2026-05-23T08:33:39.938967 |
Data as of: 2026-03-31 |
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