Investment Thesis
Table Trac demonstrates fortress-like financial health with exceptional liquidity, minimal leverage, and strong cash generation despite a 1% revenue decline. While profitability metrics are solid and margins are expanding, the lack of topline growth combined with OTC listing status raises questions about market opportunity and long-term sustainability.
Strengths
- Exceptional balance sheet strength with debt-to-equity of 0.04x and minimal long-term debt of 473.4K
- Outstanding liquidity with 26.92x current ratio and 8.2M in cash reserves representing 57% of total assets
- Strong and stable profitability: 73.8% gross margin, 14.7% net margin, with positive ROE (12.7%) and ROA (11.3%)
- Excellent cash conversion with 1.8M operating cash flow nearly fully converting to free cash flow with only 31.1K capex
Risks
- Revenue declining 1% year-over-year indicates topline pressure or market headwinds in amusement/recreation sector
- OTC exchange listing suggests lower liquidity, analyst coverage, and institutional visibility
- Margin expansion masking underlying volume decline raises sustainability concerns; unclear if cost cuts can persist
- Minimal insider buying activity (only 2 Form 4 filings) may indicate management lack of confidence in growth trajectory
Key Metrics to Watch
- Revenue growth trajectory - need reversal from decline to stabilization then acceleration
- Gross margin stability - confirm if 73.8% level can be maintained as market dynamics evolve
- Free cash flow consistency - monitor whether 1.8M operating cash flow level persists or deteriorates
- Capital deployment strategy - clarify how excess 8.2M cash will be deployed (dividends, buybacks, acquisitions, or debt reduction)
Financial Metrics
Revenue
11.0M
Net Income
1.6M
EPS (Diluted)
$0.35
Free Cash Flow
1.8M
Total Assets
14.4M
Cash
8.2M
Profitability Ratios
Gross Margin
73.8%
Operating Margin
14.5%
Net Margin
14.7%
ROE
12.7%
ROA
11.3%
FCF Margin
16.1%
Balance Sheet & Liquidity
Current Ratio
26.92x
Quick Ratio
23.64x
Debt/Equity
0.04x
Debt/Assets
10.6%
Interest Coverage
N/A
Long-term Debt
473.4K
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: 2026-04-17T04:27:25.784452 |
Data as of: 2025-12-31 |
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