Investment Thesis
Magnolia Bancorp is in severe financial distress with collapsing revenue (down 99.6% YoY), massive operating losses, and negative free cash flow of -$486K. The company is burning cash and destroying shareholder value with negative ROE of -0.9% and negative ROA of -0.5%, indicating fundamental operational failure in its core banking business.
Strengths
- Positive stockholders equity of $20.0M provides minimal solvency cushion
- No long-term debt reduces leverage risk
- Maintains $5.1M in cash and equivalents for near-term liquidity
Risks
- Revenue collapse of 99.6% YoY signals complete business breakdown or discontinued operations
- Negative operating cash flow of -$439K indicates inability to fund operations from core business
- Operating losses of -$191K with negative margins of -3183% demonstrate severe operational deterioration
- Negative free cash flow of -$486K with -8100% FCF margin indicates unsustainable cash burn
- Net income loss of -$170K with negative ROE and ROA show consistent value destruction
- No insider activity in last 90 days suggests lack of management confidence
Key Metrics to Watch
- Revenue stabilization and return to positive growth trajectory
- Operating cash flow return to positive territory
- Achievement of operating profitability to stop cash burn
- Maintenance of minimum capital ratios for federally chartered savings institution compliance
Financial Metrics
Revenue
6.0K
Net Income
-170.0K
EPS (Diluted)
$0.00
Free Cash Flow
-486.0K
Total Assets
37.4M
Cash
5.1M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-3,183.3%
Net Margin
-2,833.3%
ROE
-0.9%
ROA
-0.5%
FCF Margin
-8,100.0%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
46.5%
Interest Coverage
N/A
Long-term Debt
N/A
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: 2026-04-01T21:46:10.133558 |
Data as of: 2025-12-31 |
Powered by Claude AI