Investment Thesis
Jushi Holdings is technically insolvent with negative stockholders equity of -$115.3M and cannot service debt, as evidenced by interest coverage of only 0.3x. Despite $262.9M in revenue, the company hemorrhaged $68.6M in net losses, indicating severe operational distress that threatens solvency absent dramatic restructuring or capital injection.
Strengths
- Positive operating cash flow of $17.7M demonstrates some underlying business cash generation
- Gross margin of 43.4% indicates reasonable product-level economics before operating expenses
- Minimal free cash flow of $1.6M shows the business can generate some cash after capital investments
Risks
- Negative stockholders equity of -$115.3M represents technical insolvency with liabilities exceeding assets by $115.3M
- Interest coverage ratio of 0.3x indicates the company cannot cover interest expenses from operating income - critical default risk
- Severe profitability deterioration with -$26.1% net margin and -$68.6M net loss on flat 2.1% revenue growth signals structural operational problems
- Liquidity crisis emerging with current ratio of 1.03x and quick ratio of 0.51x - insufficient liquid assets to cover near-term obligations
- Diluted EPS declined 40% year-over-year despite flat revenue, indicating shareholder value destruction
- High debt burden of $205.8M with no equity cushion limits financial flexibility for operations or refinancing
Key Metrics to Watch
- Quarterly net income trend and path to profitability or bankruptcy
- Interest coverage ratio - currently at critical 0.3x threshold
- Current ratio and quick ratio for signs of acute liquidity stress
- Operating cash flow sustainability and ability to fund debt service
- Debt refinancing activity and covenant compliance status
Financial Metrics
Revenue
262.9M
Net Income
-68.6M
EPS (Diluted)
$-0.35
Free Cash Flow
1.6M
Total Assets
422.3M
Cash
24.0M
Profitability Ratios
Gross Margin
43.4%
Operating Margin
1.8%
Net Margin
-26.1%
ROE
N/A
ROA
-16.2%
FCF Margin
0.6%
Balance Sheet & Liquidity
Current Ratio
1.03x
Quick Ratio
0.51x
Debt/Equity
N/A
Debt/Assets
127.3%
Interest Coverage
0.26x
Long-term Debt
205.8M
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: 2026-04-11T23:09:21.413602 |
Data as of: 2025-12-31 |
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