Investment Thesis
Live Ventures faces critical financial distress with interest coverage of 0.4x, meaning operating income cannot service debt obligations. Declining revenue, razor-thin 3.2% operating margins, and net losses are structural weaknesses, though positive free cash flow of 8.5M provides near-term relief.
Strengths
- Positive free cash flow of 8.5M indicates genuine operational cash generation despite near-zero net income
- Significant EPS improvement of 158.1% YoY shows operational turnaround trajectory from worse baseline
- Current ratio of 1.68x provides adequate short-term liquidity to meet obligations
Risks
- Interest coverage ratio of 0.4x is critical red flag indicating inability to service debt from operations
- Revenue declined 5.9% YoY in competitive retail sector, signaling market share or demand weakness
- Operating margin of 3.2% is unsustainably thin with no margin for error or economic disruption
- High leverage with 88.8M long-term debt against 95.3M equity creates refinancing risk
- Quick ratio of 0.52x shows heavy dependence on inventory conversion for liquidity
- No insider activity in 90 days suggests management confidence concerns
Key Metrics to Watch
- Interest coverage ratio must improve above 1.0x to demonstrate sustainable debt service capability
- Revenue trend reversal critical for business viability in challenged retail environment
- Operating margin expansion to 8-10% range needed for sustainable profitability
- Long-term debt reduction progress and refinancing conditions
- Free cash flow sustainability to ensure positive FCF not driven by working capital manipulation
Financial Metrics
Revenue
108.5M
Net Income
-64.0K
EPS (Diluted)
$-0.02
Free Cash Flow
8.5M
Total Assets
389.2M
Cash
15.1M
Profitability Ratios
Gross Margin
32.6%
Operating Margin
3.2%
Net Margin
-0.1%
ROE
-0.1%
ROA
0.0%
FCF Margin
7.8%
Balance Sheet & Liquidity
Current Ratio
1.68x
Quick Ratio
0.52x
Debt/Equity
0.93x
Debt/Assets
75.5%
Interest Coverage
0.41x
Long-term Debt
88.8M
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: 2026-04-12T16:00:32.083189 |
Data as of: 2025-12-31 |
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