Investment Thesis
TriMas exhibits severe operational weakness with flat year-over-year revenue, anemic 4.1% operating margins, and critically negative operating cash flow of -$19.4M, indicating the reported $800.8M net income is a one-time non-cash gain masking underlying business deterioration. The interest coverage ratio of 0.7x signals dangerous debt service stress, with only the exceptional $1.3B cash position providing temporary relief.
Strengths
- Exceptional cash position of $1.3B provides significant liquidity cushion
- Strong current ratio of 4.85x and quick ratio of 4.50x ensure short-term solvency
- Conservative leverage with 0.27x debt-to-equity ratio
Risks
- Interest coverage of 0.7x is critically low and unsustainable long-term
- Negative operating cash flow of -$19.4M indicates poor earnings quality and operational stress
- Stagnant revenue growth (0.0% YoY) combined with depressed 4.1% operating margin reveals struggling core business
Key Metrics to Watch
- Operating cash flow trajectory - current negative trend must reverse
- Interest coverage ratio improvement - critical threshold is above 2.0x for sustainability
- Core revenue growth acceleration - flat growth is unacceptable for this sector
Financial Metrics
Revenue
168.3M
Net Income
800.8M
EPS (Diluted)
$21.40
Free Cash Flow
-24.6M
Total Assets
2.3B
Cash
1.3B
Profitability Ratios
Gross Margin
21.9%
Operating Margin
4.1%
Net Margin
475.9%
ROE
55.2%
ROA
34.9%
FCF Margin
-14.6%
Balance Sheet & Liquidity
Current Ratio
4.85x
Quick Ratio
4.50x
Debt/Equity
0.27x
Debt/Assets
36.9%
Interest Coverage
0.68x
Long-term Debt
396.6M
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: 2026-05-06T19:05:57.692041 |
Data as of: 2026-03-31 |
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