Investment Thesis
TrueBlue is operationally unprofitable with negative free cash flow of -$12.6M, creating an unsustainable financial position despite modest 3.1% revenue growth. While EPS has improved 61.4% year-over-year, the company remains deeply unprofitable with negative operating margins (-4.5%) and is burning cash operationally, indicating fundamental business challenges that must be resolved for long-term viability.
Strengths
- Modest revenue growth of 3.1% YoY demonstrates maintained market demand
- Strong liquidity position with current ratio of 2.09x enables near-term obligation coverage
- Moderate leverage with debt-to-equity of 0.29x provides balance sheet stability
Risks
- Unprofitable operations with negative operating margin (-4.5%) and net margin (-5.0%)
- Negative free cash flow of -$12.6M indicates business is burning cash despite positive revenue
- Negative return on equity (-7.7%) and return on assets (-3.2%) showing value destruction
- Low cash position ($24.1M) relative to total liabilities ($364.6M) limits financial flexibility
- Negative interest coverage ratio (-5.7x) indicates inability to service debt from operating income
Key Metrics to Watch
- Operating cash flow trajectory - critical to assess if operations can sustain business model
- Gross margin improvement trend - indicates if operational efficiency gains are being achieved
- Path to profitability and operating leverage - management's timeline and strategy for return to positive net income
Financial Metrics
Revenue
398.6M
Net Income
-19.8M
EPS (Diluted)
$-0.66
Free Cash Flow
-12.6M
Total Assets
620.7M
Cash
24.1M
Profitability Ratios
Gross Margin
19.8%
Operating Margin
-4.5%
Net Margin
-5.0%
ROE
-7.7%
ROA
-3.2%
FCF Margin
-3.2%
Balance Sheet & Liquidity
Current Ratio
2.09x
Quick Ratio
2.09x
Debt/Equity
0.29x
Debt/Assets
58.7%
Interest Coverage
-5.75x
Long-term Debt
73.9M
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: 2026-05-06T21:04:22.816102 |
Data as of: 2026-03-29 |
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