Investment Thesis
New Fortress Energy is in severe financial distress with negative stockholders' equity (-$180.2M), a liquidity crisis (current ratio 0.13x), and catastrophic losses (operating margin -99.3%, net margin -176.2%). Despite 27.5% revenue growth, the company is burning cash operationally (-$118.9M) and cannot service its $8.3B debt load, presenting a critical bankruptcy risk.
Strengths
- Revenue growing 27.5% year-over-year demonstrates market demand
- $92.4M cash position provides near-term operational runway
- Essential utility services in natural gas distribution sector
Risks
- Negative stockholders' equity of -$180.2M indicates insolvency risk
- Severe liquidity crisis: current ratio of 0.13x far below solvency threshold
- Negative operating and free cash flow (-$162.5M FCF) unsustainable long-term
- Interest coverage ratio of -2.9x cannot support $8.3B debt burden
- Operating losses on top-line growth suggests fundamental business model distress
- No insider buying activity in past 90 days despite depressed valuation
Key Metrics to Watch
- Operating cash flow trajectory (critical - must turn positive)
- Stockholders' equity recovery (must cease deterioration)
- Current/quick ratios (must improve above 1.0x)
- Debt restructuring announcements (refinancing urgency)
- Operating margin improvement or continued deterioration
Financial Metrics
Revenue
227.0M
Net Income
-399.9M
EPS (Diluted)
$-1.40
Free Cash Flow
-162.5M
Total Assets
10.4B
Cash
92.4M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-99.3%
Net Margin
-176.2%
ROE
N/A
ROA
-3.8%
FCF Margin
-71.6%
Balance Sheet & Liquidity
Current Ratio
0.13x
Quick Ratio
0.11x
Debt/Equity
N/A
Debt/Assets
100.5%
Interest Coverage
-2.91x
Long-term Debt
8.3B
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: 2026-05-15T09:52:18.167172 |
Data as of: 2026-03-31 |
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