Investment Thesis
NSTS Bancorp is operationally insolvent with revenue collapsed 97.7% YoY to just $59K, posting negative $39K net income and -66.1% operating margins. While the company maintains $43.4M cash and zero debt, the near-total destruction of revenue generation indicates a fundamental business model failure for which no recovery path is evident.
Strengths
- Maintains $43.4M cash position providing runway for operations
- Zero long-term debt eliminates financial leverage risk
- Net losses improving YoY (51.1%), indicating some stabilization trend
Risks
- Revenue collapse of 97.7% YoY signals potential regulatory restrictions, license suspension, or core business failure
- Persistently negative profitability with -66.1% operating margin indicates unsustainable unit economics
- Negative ROE and ROA show ongoing shareholder value destruction with no clear turnaround catalyst
- As a federally chartered savings institution with minimal revenue, questions exist regarding regulatory standing and charter viability
Key Metrics to Watch
- Quarterly revenue trend and absolute deposit levels
- Cash burn rate and months of runway remaining
- Regulatory filings and any enforcement actions or supervisory notices
Financial Metrics
Revenue
59.0K
Net Income
-39.0K
EPS (Diluted)
$-0.11
Free Cash Flow
5.5M
Total Assets
270.3M
Cash
43.4M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-66.1%
Net Margin
-66.1%
ROE
0.0%
ROA
0.0%
FCF Margin
9,350.8%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
70.4%
Interest Coverage
-0.06x
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: 2026-05-15T09:53:47.140052 |
Data as of: 2026-03-31 |
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