Investment Thesis
Despite 19.8% revenue growth, Tanke Biosciences remains operationally unprofitable with negative operating income (-$420.5K) and net income (-$860.2K), coupled with a severe 170.6% YoY EPS decline. Critical data staleness (September 2013, over 12 years old) severely limits assessment reliability; current fundamentals cannot be validated.
Strengths
- Revenue growth of 19.8% year-over-year demonstrates top-line expansion
- Reasonable gross margin of 31.8% indicates operational viability at product level
- Conservative capital structure with low leverage (Debt/Equity 0.12x) and adequate liquidity (Current Ratio 1.61x)
Risks
- Company is unprofitable at both operating and net income levels, destroying shareholder value (ROE -5.5%, ROA -3.0%)
- Earnings per share collapsed 170.6% year-over-year despite revenue growth, signaling deteriorating unit economics
- Critical data freshness issue: financial data from September 2013 (12+ years old) makes any current assessment invalid; unable to assess company's present fundamental state
- Negative interest coverage (-2.0x) indicates inability to service debt from operations
- Trading on OTC markets with no recent insider activity suggests limited institutional confidence
Key Metrics to Watch
- Path to operating profitability and positive net income
- Operating cash flow and free cash flow generation
- Quarterly earnings trends and gross margin sustainability
- Cash burn rate relative to $5.1M cash balance
Financial Metrics
Revenue
16.3M
Net Income
-860.2K
EPS (Diluted)
$0.04
Free Cash Flow
N/A
Total Assets
28.8M
Cash
5.1M
Profitability Ratios
Gross Margin
31.8%
Operating Margin
-2.6%
Net Margin
-5.3%
ROE
-5.5%
ROA
-3.0%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
1.61x
Quick Ratio
1.48x
Debt/Equity
0.12x
Debt/Assets
45.5%
Interest Coverage
-2.02x
Long-term Debt
1.9M
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: 2026-04-17T15:09:23.733927 |
Data as of: 2013-09-30 |
Powered by Claude AI