Investment Thesis
Richmond Mutual demonstrates alarming earnings quality with net income flat YoY despite 95.9% revenue growth, indicating margin compression or operational deterioration that outweighs top-line expansion. Returns on assets (0.2%) and equity (1.9%) are critically low for a bank, suggesting severe capital deployment inefficiency and potential asset quality concerns beneath the growth headline.
Strengths
- Strong revenue growth of 95.9% YoY demonstrates market demand and expansion
- Zero long-term debt (Debt/Equity: 0.00x) provides exceptional financial flexibility
- Positive free cash flow generation of 2.5M supports sustainability
Risks
- Net income completely flat (-0.0%) despite 95.9% revenue growth signals margin compression, cost inflation, or asset quality deterioration
- Critically low ROA (0.2%) and ROE (1.9%) indicate severe inefficiency in capital deployment and poor management execution
- Low interest coverage of 1.4x limits margin of safety despite zero debt, suggesting operational stress
Key Metrics to Watch
- Net income growth acceleration relative to revenue growth to verify earnings quality
- Return on assets and return on equity trends for evidence of operational improvement
- Provision for loan losses and asset quality metrics to identify underlying profitability drains
Financial Metrics
Revenue
21.2M
Net Income
2.8M
EPS (Diluted)
$0.28
Free Cash Flow
2.5M
Total Assets
1.5B
Cash
34.8M
Profitability Ratios
Gross Margin
N/A
Operating Margin
64.5%
Net Margin
13.2%
ROE
1.9%
ROA
0.2%
FCF Margin
11.6%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
90.5%
Interest Coverage
1.41x
Long-term Debt
N/A
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: 2026-05-13T06:12:03.127358 |
Data as of: 2026-03-31 |
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