Investment Thesis
Jaguar Health exhibits critical financial distress with negative stockholders equity of -$15.8M (technical insolvency) and severe liquidity constraints (current ratio 0.50x). Despite positive operating cash flow, the combination of declining revenue, net losses of $7.0M, and negative net margins of -34.6% indicates an unsustainable trajectory without major capital injection or business restructuring.
Strengths
- Positive operating cash flow of $8.8M provides near-term operational runway
- Strong interest coverage ratio of 14.6x demonstrates debt service capability
- Operating margin of 50.2% suggests potential profitability in core operations if revenue stabilizes
Risks
- Negative stockholders equity of -$15.8M indicates technical insolvency and balance sheet insolvency
- Critically deficient liquidity ratios (current 0.50x, quick 0.30x) with liabilities exceeding assets by $15.8M
- Declining revenue (-1.5% YoY) combined with $7.0M net losses creates unsustainable cash burn trajectory
- Pharmaceutical sector requires sustained R&D investment and cash reserves for pipeline sustainability
Key Metrics to Watch
- Stockholders equity recovery to positive territory - critical going-concern threshold
- Quarterly revenue trend and gross margin recovery
- Cash runway and monthly cash burn rate relative to operating cash flow
Financial Metrics
Revenue
20.3M
Net Income
-7.0M
EPS (Diluted)
$-13.60
Free Cash Flow
8.8M
Total Assets
37.4M
Cash
7.3M
Profitability Ratios
Gross Margin
N/A
Operating Margin
50.2%
Net Margin
-34.6%
ROE
N/A
ROA
-18.7%
FCF Margin
43.5%
Balance Sheet & Liquidity
Current Ratio
0.50x
Quick Ratio
0.30x
Debt/Equity
N/A
Debt/Assets
142.1%
Interest Coverage
14.57x
Long-term Debt
6.2M
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: 2026-05-23T08:37:38.440326 |
Data as of: 2026-03-31 |
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