Investment Thesis
Despite exceptional 190% revenue growth, Ladder Capital exhibits severe underlying fundamental deterioration. Negative operating cash flow, interest coverage of 0.1x (indicating acute debt service distress), and declining net income despite revenue surge suggest poor earnings quality and unsustainable leverage.
Strengths
- Strong top-line revenue growth of 190% YoY
- Substantial asset base of $5.6B providing operational scale
- Significant market presence in commercial real estate lending sector
Risks
- Operating cash flow is negative at -8.0M despite revenue growth, indicating earnings quality issues
- Interest coverage ratio of 0.1x reflects acute distress; company barely covering debt service obligations
- High leverage with Debt/Equity of 2.23x and $3.2B long-term debt against $1.4B equity creates refinancing risk
- Net income declined 40.7% YoY contradicting revenue growth, signaling unsustainable or non-recurring revenue
- ROE of 0.2% and ROA of 0.0% demonstrate catastrophically poor capital efficiency
Key Metrics to Watch
- Operating cash flow sustainability and path to positive territory
- Interest coverage ratio and debt service capacity
- Debt refinancing schedule and ability to access capital markets
Financial Metrics
Revenue
74.2M
Net Income
2.6M
EPS (Diluted)
$0.02
Free Cash Flow
-8.0M
Total Assets
5.6B
Cash
33.1M
Profitability Ratios
Gross Margin
N/A
Operating Margin
4.3%
Net Margin
3.5%
ROE
0.2%
ROA
0.0%
FCF Margin
-10.8%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
2.23x
Debt/Assets
74.2%
Interest Coverage
0.05x
Long-term Debt
3.2B
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: 2026-04-29T15:03:07.616470 |
Data as of: 2026-03-31 |
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