Investment Thesis
Norris Industries is in severe financial distress with negative stockholders' equity of $5.3M, indicating liabilities exceed assets by this amount. The company is unprofitable with a -206.4% net margin, burning cash with -$421.4K free cash flow, and shows no meaningful revenue growth or path to profitability. Operations are unsustainable without significant capital injection or restructuring.
Strengths
- Minimal insider selling activity suggests no executive panic exits
- Current ratio of 1.02x indicates some short-term liquidity coverage
- Small absolute revenue base ($231.4K) means minimal operational complexity
Risks
- Negative stockholders' equity of -$5.3M indicates technical insolvency
- Operating margin of -169.2% and net margin of -206.4% show severe unprofitability
- Negative free cash flow of -$421.4K with only $88.7K cash indicates imminent liquidity crisis
- Total liabilities ($4.9M) dwarf total assets ($335.9K) by 14.6x
- No revenue growth (+0.0% YoY) combined with persistent losses indicates structural problems
- Oil & gas exploration sector exposure adds commodity and operational risk
Key Metrics to Watch
- Cash burn rate and runway until cash depletion
- Ability to achieve operational profitability or revenue growth
- Debt restructuring or capital raise developments
- Stockholders' equity trajectory and solvency status
Financial Metrics
Revenue
231.4K
Net Income
-477.5K
EPS (Diluted)
$0.00
Free Cash Flow
-421.4K
Total Assets
335.9K
Cash
88.7K
Profitability Ratios
Gross Margin
N/A
Operating Margin
-169.2%
Net Margin
-206.4%
ROE
N/A
ROA
-142.1%
FCF Margin
-182.1%
Balance Sheet & Liquidity
Current Ratio
1.02x
Quick Ratio
1.02x
Debt/Equity
N/A
Debt/Assets
1,464.6%
Interest Coverage
-4.55x
Long-term Debt
N/A
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: 2026-04-03T19:22:10.310284 |
Data as of: 2025-11-30 |
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