Investment Thesis
MariMed demonstrates weak operational performance with persistent net losses (-9.1% net margin) despite modest revenue growth and positive free cash flow generation. The company's high leverage (1.52x debt/equity) combined with negative interest coverage and deteriorating profitability creates significant financial strain that outweighs the operational cash generation.
Strengths
- Positive free cash flow of $6.5M despite net losses, indicating operational efficiency in cash conversion
- Respectable gross margin of 36.2% demonstrates pricing power and production efficiency in core operations
- Revenue growth maintained at 1.3% YoY in challenging market conditions
Risks
- Persistent net losses of -$14.5M with negative operating margins (-1.8%) indicate fundamental profitability problems
- High leverage with debt-to-equity ratio of 1.52x and negative interest coverage (-1.7x) creates debt servicing risk
- Severely constrained liquidity with quick ratio of 0.38x and minimal cash reserves of $8.9M relative to $76M long-term debt
Key Metrics to Watch
- Path to operating profitability and trend in operating margin
- Debt service capacity and refinancing requirements given negative interest coverage
- Cash burn rate and runway given low cash balance relative to debt obligations
Financial Metrics
Revenue
159.8M
Net Income
-14.5M
EPS (Diluted)
$-0.04
Free Cash Flow
6.5M
Total Assets
202.6M
Cash
8.9M
Profitability Ratios
Gross Margin
36.2%
Operating Margin
-1.8%
Net Margin
-9.1%
ROE
-29.0%
ROA
-7.2%
FCF Margin
4.1%
Balance Sheet & Liquidity
Current Ratio
1.00x
Quick Ratio
0.38x
Debt/Equity
1.52x
Debt/Assets
68.0%
Interest Coverage
-1.73x
Long-term Debt
76.0M
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: 2026-04-02T06:08:11.297039 |
Data as of: 2025-12-31 |
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