Investment Thesis
Oshkosh Corp demonstrates critical operational stress with negative free cash flow of $189.1M and negative operating cash flow despite $2.3B in revenue, indicating severe cash generation challenges. Profitability metrics are concerning with 1.9% net margin, 1.0% ROE, and 0.4% ROA, suggesting poor capital efficiency and unsustainable operations even with conservative leverage.
Strengths
- Low debt-to-equity ratio (0.13x) provides financial flexibility and conservative leverage structure
- Substantial cash reserves of $250.3M provide near-term operational cushion
- Reasonable current ratio of 1.63x demonstrates adequate short-term liquidity position
Risks
- Negative free cash flow of -$189.1M indicates company is burning cash rather than generating it, a critical sustainability issue
- Negative operating cash flow of -$161.0M shows inability to convert revenue into cash from core operations
- Extremely poor returns (ROE 1.0%, ROA 0.4%) and thin net margin (1.9%) indicate severe profitability and capital efficiency problems
- Quick ratio of 0.83x below 1.0 signals potential short-term liquidity stress
- Massive 9670% YoY revenue growth likely driven by acquisition, making organic performance assessment impossible
Key Metrics to Watch
- Operating cash flow trend - critical to determine if negative cash burn is reversing
- Free cash flow sustainability - must return to positive before cash reserves deplete
- Net margin improvement - assess if operations can achieve acceptable profitability levels
- Cash balance trajectory - monitor depletion rate at current burn rate
Financial Metrics
Revenue
2.3B
Net Income
43.1M
EPS (Diluted)
$1.14
Free Cash Flow
-189.1M
Total Assets
10.0B
Cash
250.3M
Profitability Ratios
Gross Margin
13.5%
Operating Margin
3.5%
Net Margin
1.9%
ROE
1.0%
ROA
0.4%
FCF Margin
-8.2%
Balance Sheet & Liquidity
Current Ratio
1.63x
Quick Ratio
0.83x
Debt/Equity
0.13x
Debt/Assets
0.0%
Interest Coverage
N/A
Long-term Debt
600.6M
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: 2026-05-09T07:34:35.719842 |
Data as of: 2026-03-31 |
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