Investment Thesis
NutriBand Inc. is a fundamentally distressed company burning cash at an unsustainable rate with minimal revenue generation. Despite holding $5.3M in cash, operating losses of $7.3M per period combined with negative operating cash flow of $4.4M indicate the company is rapidly consuming its liquidity cushion with no clear path to profitability.
Strengths
- Strong liquidity position with $5.3M cash representing 63% of total assets
- Minimal debt burden with only $1.8K long-term debt and 0.00x debt-to-equity ratio
- Low current liabilities relative to liquid assets providing short-term solvency
Risks
- Severe operating losses of $7.3M against $1.6M revenue, indicating fundamental business model failure
- Negative operating cash flow of $4.4M per period means company will deplete cash reserves in approximately 1.2 periods at current burn rate
- Revenue stagnation with 0.0% YoY growth while operating expenses remain massive, showing no operational leverage or path to scaling
- Negative ROE of -96.2% and ROA of -86.3% demonstrate value destruction across all invested capital
- Operating margin of -446% and net margin of -443.9% indicate the company loses $4.46 for every dollar of revenue
Key Metrics to Watch
- Quarterly cash position and runway remaining at current burn rate
- Revenue trends and new product launch success in orthopedic appliances sector
- Operating expense reduction initiatives and path to operating cash flow positivity
Financial Metrics
Revenue
1.6M
Net Income
-7.3M
EPS (Diluted)
$-2.54
Free Cash Flow
-4.4M
Total Assets
8.4M
Cash
5.3M
Profitability Ratios
Gross Margin
29.2%
Operating Margin
-446.0%
Net Margin
-443.9%
ROE
-96.2%
ROA
-86.3%
FCF Margin
-269.5%
Balance Sheet & Liquidity
Current Ratio
7.53x
Quick Ratio
7.35x
Debt/Equity
0.00x
Debt/Assets
10.3%
Interest Coverage
-424.22x
Long-term Debt
1.8K
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: 2026-04-03T21:38:11.478186 |
Data as of: 2025-10-31 |
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