Investment Thesis
Planet Green is technically insolvent with negative $2.2M shareholders' equity, declining revenue (-35.2% YoY), and massive operating losses (-$17.6M). The company is cash flow negative with only $119K in cash against $12.4M liabilities and a critical current ratio of 0.40x, indicating imminent solvency risk.
Strengths
- Still generating minimal revenue base of $3.0M
- Maintains some tangible assets of $10.2M
- Long-term debt is modest at $418.8K
Risks
- Negative stockholders' equity indicates technical insolvency and restructuring/bankruptcy risk
- Severe revenue contraction (-35.2% YoY) with gross margins only 3.3% provide no recovery margin
- Critical liquidity crisis with $119K cash covering $12.4M liabilities; current ratio 0.40x unsustainable
- Operating cash flow negative $1.8M with no positive path to profitability visible
- Operating losses of $17.6M on $3M revenue demonstrate fundamental business model failure
Key Metrics to Watch
- Cash position (currently $119K - track for covenant violations or forced restructuring)
- Quarterly revenue trend (critical threshold: stabilization above $2.5M)
- Operating cash flow burn rate and timing to cash depletion
- Debt restructuring announcements or refinancing actions
- Asset impairment charges and going concern qualifications in filings
Financial Metrics
Revenue
3.0M
Net Income
-27.0M
EPS (Diluted)
$-0.01
Free Cash Flow
-1.8M
Total Assets
10.2M
Cash
119.0K
Profitability Ratios
Gross Margin
3.3%
Operating Margin
-580.3%
Net Margin
-887.2%
ROE
N/A
ROA
-264.2%
FCF Margin
-58.9%
Balance Sheet & Liquidity
Current Ratio
0.40x
Quick Ratio
0.34x
Debt/Equity
N/A
Debt/Assets
121.3%
Interest Coverage
-113.44x
Long-term Debt
418.8K
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: 2026-04-14T08:33:21.671070 |
Data as of: 2025-12-31 |
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