Investment Thesis
Jingbo Technology faces critical financial distress with negative stockholders' equity of -$25.7M, indicating technical insolvency. While revenue growth of 35.2% is encouraging, the company burns cash operationally (-$96.1K in OCF), has only $130K in liquidity against $37.9M in liabilities, and exhibits a liquidity crisis (0.51x current ratio). Without immediate capital restructuring, the company faces high default risk.
Strengths
- Revenue growing 35.2% YoY demonstrates market demand
- Positive gross profit of $249.9K and 20.8% gross margin shows core business generates positive contribution
- Operating losses narrowed year-over-year (net loss improved by 0.4% despite revenue growth)
Risks
- Negative stockholders' equity of -$25.7M indicates technical insolvency and balance sheet failure
- Critical liquidity crisis: current ratio 0.51x with only $130K cash against $37.9M total liabilities
- Severe operating losses: -$153.7% operating margin with negative free cash flow (-$185.5K), indicating unsustainable burn rate
- High leverage: $22.1M long-term debt with negative interest coverage (-38.9x) and inability to service debt from operations
- Persistent cash burn: negative operating cash flow despite revenue growth indicates operational model cannot sustain current scale
Key Metrics to Watch
- Operating cash flow trend - critical to exit cash burn mode
- Gross profit growth vs. operating expense reduction - path to profitability
- Debt refinancing events and covenant compliance status - solvency risk indicator
Financial Metrics
Revenue
1.2M
Net Income
-2.0M
EPS (Diluted)
$0.00
Free Cash Flow
-185.5K
Total Assets
12.2M
Cash
130.0K
Profitability Ratios
Gross Margin
20.8%
Operating Margin
-153.7%
Net Margin
-164.7%
ROE
N/A
ROA
-16.2%
FCF Margin
-15.4%
Balance Sheet & Liquidity
Current Ratio
0.51x
Quick Ratio
0.50x
Debt/Equity
N/A
Debt/Assets
309.7%
Interest Coverage
-38.90x
Long-term Debt
22.1M
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: 2026-04-16T22:39:21.350202 |
Data as of: 2025-11-30 |
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