Investment Thesis
Neutra Corp exhibits severe financial distress with negative stockholders equity of -$936K, indicating the company is technically insolvent. The company is burning cash with operating losses of -$195.7K against minimal revenue of $11.5K, while maintaining significant debt obligations of $522.9K with virtually no liquidity (0.02x current ratio). The business model is fundamentally broken with negative operating margins exceeding -1700% and a free cash flow margin of -448.7%.
Strengths
- Positive gross margin of 44.2% suggests potential product viability if commercialization improves
- Assets of $26.9K provide minimal cushion but exist
- Medicinal chemicals sector operates in growing healthcare market
Risks
- Negative stockholders equity of -$936K indicates technical insolvency and bankruptcy risk
- Critical liquidity crisis with current ratio of 0.02x and only $692 cash against $963K liabilities
- Operational collapse with revenue declining 26.1% YoY while operating losses widen significantly
- Unsustainable debt burden of $522.9K with negative cash flows across all periods
- Inability to service debt evidenced by -78.7x interest coverage ratio
- No insider buying activity in past 90 days suggests lack of management confidence
Key Metrics to Watch
- Revenue stabilization and growth trajectory
- Operating cash flow return to positive territory
- Debt restructuring or refinancing activities
- Stockholders equity recovery toward positive status
- Gross margin sustainability as revenue changes
Financial Metrics
Revenue
11.5K
Net Income
-198.8K
EPS (Diluted)
$0.00
Free Cash Flow
-51.5K
Total Assets
26.9K
Cash
692.0
Profitability Ratios
Gross Margin
44.2%
Operating Margin
-1,705.0%
Net Margin
-1,732.3%
ROE
N/A
ROA
-737.9%
FCF Margin
-448.7%
Balance Sheet & Liquidity
Current Ratio
0.02x
Quick Ratio
0.00x
Debt/Equity
N/A
Debt/Assets
3,574.0%
Interest Coverage
-78.72x
Long-term Debt
522.9K
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: 2026-04-03T21:50:11.381033 |
Data as of: 2023-10-31 |
Powered by Claude AI