Investment Thesis
TechPrecision Corp exhibits critical financial distress with sustained losses, negative operating cash flow of -$253K, and severely limited liquidity (0.97x current ratio with only $50K cash). The company is burning capital at an alarming rate with -$3.5M free cash flow while generating zero revenue growth, creating significant solvency risk.
Strengths
- Gross margin of 16.4% provides revenue contribution to partially cover fixed costs
- EPS improved 64.2% YoY indicating loss magnitude is decelerating
- Moderate debt-to-equity ratio of 0.84x relative to asset base
Risks
- Critical liquidity crisis: 0.97x current ratio with only $50K cash and -$3.5M free cash flow burn
- Sustained unprofitability with negative operating income (-$873K), -6.3% net margin, and zero revenue growth
- Negative interest coverage (-2.5x) and debt service risk with ongoing operational losses
Key Metrics to Watch
- Monthly cash burn rate and liquidity runway remaining
- Operating cash flow trajectory toward breakeven
- Revenue stabilization and gross margin preservation
- Debt maturity schedule and refinancing requirements
Financial Metrics
Revenue
23.6M
Net Income
-1.5M
EPS (Diluted)
$-0.13
Free Cash Flow
-3.5M
Total Assets
32.8M
Cash
50.0K
Profitability Ratios
Gross Margin
16.4%
Operating Margin
-3.7%
Net Margin
-6.3%
ROE
-18.5%
ROA
-4.5%
FCF Margin
-14.9%
Balance Sheet & Liquidity
Current Ratio
0.97x
Quick Ratio
0.91x
Debt/Equity
0.84x
Debt/Assets
75.7%
Interest Coverage
-2.48x
Long-term Debt
6.7M
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: 2026-04-17T17:24:23.516654 |
Data as of: 2025-12-31 |
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