Investment Thesis
Pathfinder Bancorp exhibits strong revenue growth of 72.9% YoY but is unable to convert this expansion into profitability, with negative net income, operating losses, and critically negative ROE of -1.6%. The poor interest coverage ratio of -0.2x and inability to generate returns on equity and assets indicate fundamental operational challenges that outweigh topline growth, coupled with data inconsistencies (negative net income versus positive EPS) that raise quality concerns.
Strengths
- Strong revenue growth of 72.9% YoY indicating market expansion
- Positive free cash flow generation of 10.4M despite reported losses
- Conservative leverage with 0.11x debt-to-equity ratio providing financial flexibility
Risks
- Persistent unprofitability with negative net income of -1.9M and negative operating margins of -5.3%
- Negative ROE of -1.6% indicating destruction of shareholder capital
- Critical interest coverage ratio of -0.2x showing inability to service debt from operations
- Data inconsistency between negative net income and positive EPS raises accounting transparency concerns
Key Metrics to Watch
- Net interest margin trend and path to profitability
- Return on equity trajectory toward positive territory
- Interest coverage ratio improvement and operational cash generation sustainability
Financial Metrics
Revenue
76.7M
Net Income
-1.9M
EPS (Diluted)
$0.47
Free Cash Flow
10.4M
Total Assets
1.4B
Cash
31.2M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-5.3%
Net Margin
-2.5%
ROE
-1.6%
ROA
-0.1%
FCF Margin
13.6%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.11x
Debt/Assets
91.4%
Interest Coverage
-0.22x
Long-term Debt
14.1M
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: 2026-04-14T01:21:26.698772 |
Data as of: 2025-12-31 |
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