Investment Thesis
Northfield Bancorp faces critical solvency concerns with an interest coverage ratio of 0.5x, indicating the company cannot cover interest obligations from operating income. A catastrophic 97.2% YoY revenue decline combined with minimal returns (ROE 1.7%, ROA 0.2%) signals severe operational distress requiring immediate investigation of underlying causes.
Strengths
- Positive operating cash flow of $19.8M demonstrates ongoing cash generation
- Positive free cash flow of $19.6M provides some liquidity buffer
- Substantial asset base of $5.7B provides foundational scale for banking operations
Risks
- Interest coverage ratio of 0.5x - critical red flag: company cannot cover interest expense from operating income, indicating solvency risk
- Revenue collapsed 97.2% YoY and net income down 97.3% YoY - suggests major operational failure, customer loss, or unidentified one-time charges
- Extremely weak returns: ROE of 1.7% and ROA of 0.2% far below banking industry standards, indicating value destruction
Key Metrics to Watch
- Interest coverage ratio recovery above 1.5x (solvency threshold)
- Revenue stabilization and YoY growth reversal
- Return on equity trending toward 8-10% range (banking industry minimum)
Financial Metrics
Revenue
1.7M
Net Income
11.8M
EPS (Diluted)
$0.30
Free Cash Flow
19.6M
Total Assets
5.7B
Cash
239.6M
Profitability Ratios
Gross Margin
N/A
Operating Margin
987.1%
Net Margin
693.0%
ROE
1.7%
ROA
0.2%
FCF Margin
1,146.4%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.96x
Debt/Assets
87.9%
Interest Coverage
0.55x
Long-term Debt
666.4M
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: 2026-05-12T06:10:34.840988 |
Data as of: 2026-03-31 |
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