Investment Thesis
JELD-WEN is in severe financial distress with a debt-to-equity ratio of 97.65x, negative operating cash flow of -$91.2M, and inability to cover interest expenses from operations (interest coverage: -3.5x). The company's equity base of $12.2M is essentially depleted relative to $2.1B in liabilities, signaling potential insolvency and restructuring risk.
Strengths
- Current ratio of 1.68x provides near-term liquidity buffer
- Gross margin of 12.8% demonstrates some product pricing power remains viable
- Still generating $722.1M in annual revenue despite industry headwinds
Risks
- Debt-to-equity ratio of 97.65x indicates likely insolvency and restructuring/bankruptcy risk
- Negative operating cash flow (-$91.2M) and free cash flow (-$116.3M) are unsustainable and limit runway
- Interest coverage ratio of -3.5x shows inability to service $1.2B debt from operations
- Stockholders' equity depleted to $12.2M against $2.1B in total liabilities
- Revenue declining 14.9% YoY with operating margin at -7.6% signals operational deterioration
Key Metrics to Watch
- Operating cash flow trend and path to positive OCF
- Debt covenant compliance status and potential default/restructuring announcements
- Revenue stabilization and operating margin recovery trajectory
- Stockholders' equity and potential equity raise or debt restructuring events
Financial Metrics
Revenue
722.1M
Net Income
-76.8M
EPS (Diluted)
$-0.90
Free Cash Flow
-116.3M
Total Assets
2.1B
Cash
50.4M
Profitability Ratios
Gross Margin
12.8%
Operating Margin
-7.6%
Net Margin
-10.6%
ROE
-630.9%
ROA
-3.7%
FCF Margin
-16.1%
Balance Sheet & Liquidity
Current Ratio
1.68x
Quick Ratio
0.93x
Debt/Equity
97.65x
Debt/Assets
99.4%
Interest Coverage
-3.52x
Long-term Debt
1.2B
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: 2026-05-06T20:34:20.922033 |
Data as of: 2026-03-28 |
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