Investment Thesis
Galenfeha exhibits severe financial distress with negative stockholders' equity (-$67.4K), making it technically insolvent. The company is unprofitable with operating losses of -$94.9K and negative operating cash flow of -$97.3K, demonstrating inability to self-fund operations. With only $469 in cash, $1.6M in debt, and a current ratio of 0.45x, the company faces acute liquidity crisis and unsustainable debt obligations.
Strengths
- Gross margin of 34.7% indicates core service delivery has underlying economics
- Company continues operating with $559.5K in revenue despite financial distress
- Engineering services sector has stable long-term demand fundamentals
Risks
- Negative stockholders' equity of -$67.4K signals technical insolvency and balance sheet collapse
- Negative operating cash flow of -$97.3K demonstrates operations are not self-sustaining
- Critical liquidity crisis: $469 cash with 0.45x current ratio unable to meet obligations
- Extreme leverage: $1.6M debt versus $55K total assets with -2.2x interest coverage indicates default risk
- Severely stale financial data from 2019; current financial status unknown and likely deteriorated further
Key Metrics to Watch
- Updated financial statements - 2019 data insufficient for current assessment
- Stockholders' equity trajectory - critical indicator of solvency
- Operating cash flow and cash runway - essential for determining business continuity
- Debt restructuring announcements or bankruptcy filings - likely outcomes
Financial Metrics
Revenue
559.5K
Net Income
-162.6K
EPS (Diluted)
$-0.01
Free Cash Flow
-97.3K
Total Assets
55.0K
Cash
469.0
Profitability Ratios
Gross Margin
34.7%
Operating Margin
-17.0%
Net Margin
-29.1%
ROE
N/A
ROA
-295.8%
FCF Margin
-17.4%
Balance Sheet & Liquidity
Current Ratio
0.45x
Quick Ratio
0.45x
Debt/Equity
N/A
Debt/Assets
222.7%
Interest Coverage
-2.20x
Long-term Debt
1.6M
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: 2026-04-13T05:36:29.040207 |
Data as of: 2019-03-31 |
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