Investment Thesis
Gibraltar Industries is deeply unprofitable with a -$67.5M net loss on $356.3M revenue and negative operating margins, indicating severe operational dysfunction. Negative operating and free cash flows of -$41.2M and -$47.2M respectively are unsustainable, while $1.2B in debt with negative interest coverage creates acute financial distress risk given only $20.3M in available cash.
Strengths
- Gross margin of 22.1% demonstrates products retain inherent profitability potential
- Asset base of $2.8B provides balance sheet backing despite current losses
- Current ratio of 1.41x indicates near-term liquidity is currently manageable
Risks
- Operating and net losses with negative operating margin indicate fundamental operational dysfunction requiring significant restructuring
- Negative operating cash flow and free cash flow represent unsustainable cash burn pattern threatening solvency
- High leverage (1.39x debt-to-equity) combined with negative interest coverage and minimal cash reserves create financial distress and refinancing risk
Key Metrics to Watch
- Quarterly operating cash flow trajectory and timing to positive cash generation
- Operating margin improvement and progress toward break-even and profitability
- Debt covenant compliance status and ability to refinance given negative interest coverage
Financial Metrics
Revenue
356.3M
Net Income
-67.5M
EPS (Diluted)
$-2.26
Free Cash Flow
-47.2M
Total Assets
2.8B
Cash
20.3M
Profitability Ratios
Gross Margin
22.1%
Operating Margin
-1.3%
Net Margin
-18.9%
ROE
-7.7%
ROA
-2.4%
FCF Margin
-13.2%
Balance Sheet & Liquidity
Current Ratio
1.41x
Quick Ratio
0.87x
Debt/Equity
1.39x
Debt/Assets
0.0%
Interest Coverage
-1.94x
Long-term Debt
1.2B
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: 2026-05-08T07:26:36.363771 |
Data as of: 2026-03-31 |
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