Investment Thesis
SusGlobal Energy is in severe financial distress with negative stockholders equity of -$29.9M, indicating technical insolvency. The company faces a catastrophic 86.9% YoY revenue collapse, negative operating cash flow, and a critical liquidity crisis with only $5.4K in cash against $38.7M in liabilities.
Strengths
- Operates in essential refuse systems sector with structural market demand
- Retains $8.8M in total assets with potential liquidation value
- Not yet in formal bankruptcy proceedings despite extreme distress
Risks
- Technical insolvency: negative stockholders equity of -$29.9M with liabilities exceeding assets by $29.9M
- Critical liquidity crisis with only $5.4K cash, 0.00x current ratio, and -$78.6K operating cash burn
- Revenue collapsed 86.9% YoY to $32.3K with -$7.9M operating loss and no clear recovery path
- Cannot service $9.5M long-term debt with negative cash generation and deteriorating fundamentals
- Extreme bankruptcy risk and high probability of total shareholder loss
Key Metrics to Watch
- Cash burn rate and remaining runway until depletion at current burn rate
- Quarterly revenue trajectory and evidence of stabilization or further decline
- Operating loss reduction and timeline to cash flow breakeven
- Debt restructuring announcements, covenant violations, or default events
- Asset sales, liquidation, or Chapter 7/11 proceedings
Financial Metrics
Revenue
32.3K
Net Income
-4.5M
EPS (Diluted)
$-0.03
Free Cash Flow
-78.6K
Total Assets
8.8M
Cash
5.4K
Profitability Ratios
Gross Margin
-1,907.8%
Operating Margin
-24,301.7%
Net Margin
-13,926.5%
ROE
N/A
ROA
-51.3%
FCF Margin
-243.1%
Balance Sheet & Liquidity
Current Ratio
0.00x
Quick Ratio
0.00x
Debt/Equity
N/A
Debt/Assets
440.8%
Interest Coverage
-41.10x
Long-term Debt
9.5M
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: 2026-04-16T06:24:30.284578 |
Data as of: 2025-09-30 |
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