Investment Thesis
PAMT Corp exhibits severe financial distress with deteriorating fundamentals across all key metrics. The company is unprofitable on an operating basis (-0.2% margin), burning cash operationally (-$2.7M), and cannot service its $252M debt load from earnings (interest coverage: -0.1x). Revenue is contracting sharply (-16.3% YoY) while profitability has collapsed (-65.5% YoY net income decline).
Strengths
- Current ratio of 1.30x provides near-term liquidity buffer for operational demands
- Stockholders equity of $210.4M provides some solvency cushion
- Minimal insider selling activity suggests management confidence, though this carries limited weight
Risks
- Negative operating cash flow (-$2.7M) and free cash flow (-$17.1M) indicate unsustainable operations requiring cash reserves depletion
- Negative interest coverage ratio (-0.1x) means operating income cannot service debt obligations; refinancing risk is acute
- Steep revenue decline (-16.3% YoY) and net income deterioration (-65.5% YoY) signal loss of competitive position in trucking sector and structural business challenges
- Only $40.5M cash against $252M long-term debt and negative cash generation creates solvency timeline risk
Key Metrics to Watch
- Operating cash flow trajectory and sustainability of operations without cash burn
- Debt refinancing schedule and covenant compliance given negative profitability
- Revenue stabilization and return to operating profitability
Financial Metrics
Revenue
141.9M
Net Income
-8.0K
EPS (Diluted)
$0.00
Free Cash Flow
-17.1M
Total Assets
681.0M
Cash
40.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-0.2%
Net Margin
0.0%
ROE
0.0%
ROA
0.0%
FCF Margin
-12.0%
Balance Sheet & Liquidity
Current Ratio
1.30x
Quick Ratio
1.28x
Debt/Equity
1.20x
Debt/Assets
69.1%
Interest Coverage
-0.06x
Long-term Debt
252.0M
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: 2026-05-09T06:34:41.565208 |
Data as of: 2026-03-31 |
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