Investment Thesis
NCR Voyix faces acute financial distress with negative operating cash flow of -$210M and inability to service debt (0.4x interest coverage). Deteriorating fundamentals including declining revenue (-4.6% YoY), collapsed EPS (-95.4%), and severe free cash burn (-$375M) signal structural insolvency requiring urgent debt restructuring or recapitalization.
Strengths
- Positive net income of $62M despite operational challenges
- Adequate cash balance of $231M providing near-term liquidity runway
- Gross profit generation of $149M indicates some operational value
Risks
- Cannot service debt from operations - interest coverage of 0.4x is unsustainable and critical
- Negative operating cash flow of -$210M indicates operational deterioration and cash burn
- Liquidity crisis emerging with quick ratio of 0.83x unable to cover current liabilities
- Free cash flow of -$375M is unsustainable; spending $165M capex while generating negative operating cash
- High leverage of 1.17x debt-to-equity ratio in weakening financial position with $1.1B long-term debt
- Declining revenues (-4.6% YoY) and EPS collapse (-95.4% YoY) signal structural market challenges
Key Metrics to Watch
- Operating cash flow trajectory - must return to positive to avoid solvency crisis
- Interest coverage ratio - critical to reach minimum 2.0x sustainable level
- Free cash flow sustainability - current -$375M burn rate requires correction
- Debt refinancing status and covenant compliance
- Revenue stabilization and margin improvement
Financial Metrics
Revenue
2.7B
Net Income
62.0M
EPS (Diluted)
$0.30
Free Cash Flow
-375.0M
Total Assets
3.9B
Cash
231.0M
Profitability Ratios
Gross Margin
5.5%
Operating Margin
1.0%
Net Margin
2.3%
ROE
6.5%
ROA
1.6%
FCF Margin
-14.0%
Balance Sheet & Liquidity
Current Ratio
1.04x
Quick Ratio
0.83x
Debt/Equity
1.17x
Debt/Assets
70.5%
Interest Coverage
0.43x
Long-term Debt
1.1B
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: 2026-04-13T02:54:27.125663 |
Data as of: 2025-12-31 |
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