Investment Thesis
OMNIQ is in severe financial distress with negative stockholders' equity of -$13.1M and a critical liquidity crisis (0.58x current ratio). The company is unprofitable on both operating (-5.2% margin) and net income (-3.2% margin) levels with flat revenue growth, indicating deteriorating fundamentals. While positive operating cash flow ($5.4M) is notable, it cannot offset the balance sheet insolvency and liquidity constraints that threaten near-term viability.
Strengths
- Positive operating cash flow of $5.4M despite accounting losses suggests some cash generation capability
- Strong free cash flow margin of 22.1% indicates efficient working capital management and low capex requirements
- Reasonable gross margin of 29.4% shows the core business model retains some viability in the computer systems design sector
Risks
- Negative stockholders' equity of -$13.1M indicates balance sheet insolvency; liabilities exceed assets by $13.1M
- Severe liquidity crisis with current ratio of 0.58x and quick ratio of 0.45x; cannot cover short-term obligations with current assets
- Unprofitable across all income metrics: operating income negative at -$1.3M, net loss of -$784K, with no path to profitability evident
- Stagnant revenue at -0.8% YoY shows no growth; combined with losses, indicates deteriorating competitive position
- Minimal cash reserves of $679K relative to $38.1M in liabilities creates existential refinancing risk
Key Metrics to Watch
- Stockholders' equity trajectory and balance sheet stabilization
- Cash burn rate and months of liquidity runway
- Operating income and path to profitability
- Revenue growth acceleration and margin expansion
- Debt refinancing ability and covenant compliance status
Financial Metrics
Revenue
24.2M
Net Income
-784.0K
EPS (Diluted)
$0.00
Free Cash Flow
5.4M
Total Assets
25.0M
Cash
679.0K
Profitability Ratios
Gross Margin
29.4%
Operating Margin
-5.2%
Net Margin
-3.2%
ROE
N/A
ROA
-3.1%
FCF Margin
22.1%
Balance Sheet & Liquidity
Current Ratio
0.58x
Quick Ratio
0.45x
Debt/Equity
N/A
Debt/Assets
152.3%
Interest Coverage
-1.38x
Long-term Debt
390.0K
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: 2026-04-13T15:54:25.015072 |
Data as of: 2025-09-30 |
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