Investment Thesis
Ryman is operationally profitable with growing revenue, but faces severe financial distress from dangerously high leverage (5.51x D/E), critically weak interest coverage (2.3x), and deteriorating liquidity (0.61x current ratio). Declining earnings despite 10.2% revenue growth and 13.9% EPS decline indicate margin compression and elevated refinancing risk in a rising rate environment.
Strengths
- Revenue growth of 10.2% YoY demonstrates operational demand recovery
- Positive operating and free cash flow generation ($89.4M FCF) provides near-term debt servicing capacity
- Solid operating margin of 20.7% reflects profitable core operations
Risks
- Extreme leverage (5.51x D/E) creates bankruptcy risk if hospitality demand deteriorates
- Critically weak interest coverage (2.3x) provides no safety margin; vulnerable to rate changes or operational downturns
- Sub-1.0 current ratio indicates acute liquidity stress and potential near-term refinancing pressure
- Earnings declining despite revenue growth signals margin compression from rising financing costs
- EPS down 13.9% YoY despite top-line growth indicates shareholder dilution or financial burden acceleration
Key Metrics to Watch
- Interest coverage ratio trend (must improve above 3.5x)
- Debt refinancing schedule and rates for 2026-2027 maturities
- Operating cash flow sustainability and FCF generation
- Occupancy rates and RevPAR trends for hospitality portfolio
Financial Metrics
Revenue
664.6M
Net Income
70.5M
EPS (Diluted)
$1.03
Free Cash Flow
89.4M
Total Assets
6.2B
Cash
424.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
20.7%
Net Margin
10.6%
ROE
9.6%
ROA
1.1%
FCF Margin
13.5%
Balance Sheet & Liquidity
Current Ratio
0.61x
Quick Ratio
0.56x
Debt/Equity
5.51x
Debt/Assets
80.6%
Interest Coverage
2.28x
Long-term Debt
4.0B
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: 2026-05-06T18:43:09.595099 |
Data as of: 2026-03-31 |
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