Investment Thesis
USD Partners LP is technically insolvent with liabilities ($213.5M) substantially exceeding assets ($104.6M), indicating negative equity. The company faces a critical liquidity crisis (0.20x current ratio) and cannot meet short-term obligations despite positive operating margins, as evidenced by negative operating cash flow (-$1.0M) and negative free cash flow (-$1.7M). The outdated data (2023-09-30) raises concerns that financial distress has likely worsened.
Strengths
- Positive operating margin of 22.9% demonstrates operational efficiency in core railroad switching business
- Positive GAAP net income of $3.8M shows profitability on accounting basis
- Operates in niche infrastructure sector (railroad switching & terminals) with potential competitive moats
Risks
- Technical insolvency: liabilities exceed assets by $108.9M with negative stockholders' equity
- Severe liquidity crisis with current ratio of 0.20x prevents meeting short-term obligations
- Negative operating cash flow (-$1.0M) contradicts GAAP profitability, indicating fundamental operational stress
- Interest coverage of 0.9x indicates insufficient operating income to cover debt service
- Cash balance of only $8.7M is insufficient relative to $213.5M liabilities
- Financial data is 2.5+ years old; current situation likely deteriorated further
- Negative free cash flow (-$1.7M) means company cannot self-fund or service debt
Key Metrics to Watch
- Updated stockholders' equity status and solvency confirmation
- Operating cash flow trend and underlying causes of negative cash generation
- Liquidity position: current ratio, quick ratio, and days cash on hand
- Debt covenant compliance and bankruptcy/restructuring announcements
Financial Metrics
Revenue
51.7M
Net Income
3.8M
EPS (Diluted)
$0.00
Free Cash Flow
-1.7M
Total Assets
104.6M
Cash
8.7M
Profitability Ratios
Gross Margin
N/A
Operating Margin
22.9%
Net Margin
7.4%
ROE
N/A
ROA
3.6%
FCF Margin
-3.2%
Balance Sheet & Liquidity
Current Ratio
0.20x
Quick Ratio
0.20x
Debt/Equity
N/A
Debt/Assets
204.1%
Interest Coverage
0.86x
Long-term Debt
0.0
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: 2026-04-18T08:33:23.831434 |
Data as of: 2023-09-30 |
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