Investment Thesis
Maitong Sunshine is in severe financial distress with negative stockholders' equity of -71.7K, indicating liabilities exceed assets by this amount. The company is hemorrhaging cash with -120.6K net loss on minimal 24.9K revenue, unsustainable negative operating margins of -484.8%, and persistently negative free cash flow of -26.1K. Despite modest revenue growth of 71.5% YoY, the company lacks the scale and profitability to support ongoing operations.
Strengths
- Revenue growth of 71.5% YoY demonstrates demand for services
- Gross margin of 48.6% indicates underlying unit economics could be viable at scale
- Positive gross profit of 12.1K shows some operational contribution before fixed costs
Risks
- Negative stockholders' equity of -71.7K indicates technical insolvency and balance sheet distress
- Operating cash flow negative at -22.4K with free cash flow of -26.1K; company is burning cash and cannot sustain operations
- Current ratio of 0.61x indicates severe liquidity crisis; liabilities exceed current assets significantly
- Net loss of -120.6K on revenue of 24.9K is economically unsustainable; operating expenses are 5x+ revenue
- No insider buying activity in last 90 days suggests lack of confidence from management
- Negative interest coverage ratio of -1.5x indicates inability to service any debt obligations
Key Metrics to Watch
- Cash burn rate and months of cash runway remaining (currently 32.9K cash vs -22.4K operating burn)
- Path to operating profitability and scale needed to cover fixed cost base
- Quarterly revenue trajectory to confirm sustainability of growth claims
Financial Metrics
Revenue
24.9K
Net Income
-120.6K
EPS (Diluted)
$0.00
Free Cash Flow
-26.1K
Total Assets
373.5K
Cash
32.9K
Profitability Ratios
Gross Margin
48.6%
Operating Margin
-484.8%
Net Margin
-484.2%
ROE
N/A
ROA
-32.3%
FCF Margin
-105.0%
Balance Sheet & Liquidity
Current Ratio
0.61x
Quick Ratio
0.61x
Debt/Equity
N/A
Debt/Assets
119.2%
Interest Coverage
-1,454.76x
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: 2026-04-01T22:10:11.214068 |
Data as of: 2025-12-31 |
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