Investment Thesis
Sadot Group is in severe financial distress with negative stockholders' equity of -$61.1M, indicating technical insolvency. A catastrophic 64.8% YoY revenue decline combined with razor-thin 1.9% gross margins, persistent operating losses, and a critical liquidity crisis (0.04x current ratio) present immediate going-concern risks with only $679K in cash against $60.8M liabilities.
Strengths
- Still generating revenue of $246.9M despite significant contraction
- No capital expenditures suggesting operational discipline and cash preservation
- Potential asset base of $2.4M that could be liquidated in worst-case scenario
Risks
- Negative stockholders' equity of -$61.1M represents technical insolvency and balance sheet collapse
- Extreme liquidity crisis with 0.04x current ratio and only $679K cash against $60.8M liabilities
- Catastrophic 64.8% YoY revenue decline signals fundamental business deterioration
- Persistent operating losses and negative cash flow of -$7.2M burning remaining capital
- Unviable 1.9% gross margin indicates structural profitability problems
Key Metrics to Watch
- Cash balance depletion rate - critical solvency indicator
- Quarterly revenue trend - any stabilization or further deterioration
- Gross margin recovery potential - essential for profitability path
- Debt restructuring or covenant violation announcements - refinancing risk
Financial Metrics
Revenue
246.9M
Net Income
-4.9M
EPS (Diluted)
$-21.02
Free Cash Flow
-7.2M
Total Assets
2.4M
Cash
679.0K
Profitability Ratios
Gross Margin
1.9%
Operating Margin
-1.0%
Net Margin
-2.0%
ROE
N/A
ROA
-204.5%
FCF Margin
-2.9%
Balance Sheet & Liquidity
Current Ratio
0.04x
Quick Ratio
0.04x
Debt/Equity
N/A
Debt/Assets
2,553.8%
Interest Coverage
-375.19x
Long-term Debt
11.1M
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: 2026-05-16T08:21:12.993738 |
Data as of: 2026-03-31 |
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