Investment Thesis
VisitIQ exhibits severe financial distress with a critical liquidity crisis (0.19x current ratio), negative operating and free cash flows (-1.4M and -2.0M respectively), and deteriorating earnings quality as net income declined 28.2% YoY despite 66% revenue growth. The extremely outdated data (2012) raises serious concerns about the company's current viability and solvency.
Strengths
- Strong top-line revenue growth of 66% YoY
- Respectable operating margin of 29.3% at operational level
- Conservative debt-to-equity ratio of 0.20x
Risks
- Critical liquidity crisis with current ratio of only 0.19x indicating inability to cover short-term obligations
- Severe negative operating cash flow (-1.4M) and free cash flow (-2.0M) indicating cash burn and operational stress
- Deteriorating profitability quality as net income declined 28.2% YoY while revenue grew 66%, signaling expense growth outpacing revenue
- Extremely poor asset efficiency with ROA of 1.8% and ROE of 4.7%
- Financial data is stale (from 2012), raising uncertainty about current financial condition
Key Metrics to Watch
- Operating cash flow and free cash flow trends (currently severely negative)
- Current and quick ratios (urgent need for improvement from 0.19x levels)
- Net income margin trend relative to revenue growth (currently diverging negatively)
Financial Metrics
Revenue
11.6M
Net Income
2.6M
EPS (Diluted)
$0.09
Free Cash Flow
-2.0M
Total Assets
142.9M
Cash
9.0M
Profitability Ratios
Gross Margin
33.4%
Operating Margin
29.3%
Net Margin
22.5%
ROE
4.7%
ROA
1.8%
FCF Margin
-16.9%
Balance Sheet & Liquidity
Current Ratio
0.19x
Quick Ratio
0.19x
Debt/Equity
0.20x
Debt/Assets
61.0%
Interest Coverage
4.15x
Long-term Debt
11.2M
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: 2026-04-18T16:00:18.604100 |
Data as of: 2012-11-30 |
Powered by Claude AI