Investment Thesis
Bristow Group exhibits severe cash flow deterioration with negative operating cash flow (-$8.2M) and free cash flow (-$49.6M) despite reported net income growth, indicating poor earnings quality. The extraordinary 15,834% revenue spike appears non-organic, masking fundamental weakness in returns on capital (ROE 1.2%, ROA 0.5%) and thin net margins (3.4%). While adequate liquidity provides near-term solvency, the company cannot sustain capital expenditures or debt service from operating cash generation.
Strengths
- Strong liquidity position with current ratio of 2.15x and quick ratio of 1.79x
- Moderate leverage at 0.71x debt-to-equity with manageable 3.7x interest coverage
- Cash position of $342.1M provides operating cushion for near-term obligations
Risks
- Negative operating cash flow (-$8.2M) and free cash flow (-$49.6M) indicate unsustainable business model
- Extreme ROE (1.2%) and ROA (0.5%) demonstrate severe capital inefficiency across asset base
- Revenue surge likely non-organic/restructuring-related; organic growth quality highly questionable
- Net margin of 3.4% insufficient to support $754.8M debt burden and capital spending
- Cash burn accelerating: net income positive but cash generation deeply negative
Key Metrics to Watch
- Operating cash flow trajectory and conversion of net income to cash
- Free cash flow sustainability and ability to fund $41.3M annual capex
- Return on equity and asset improvement as integration matures
- Revenue quality and organic growth ex-acquisition components
Financial Metrics
Revenue
388.7M
Net Income
13.1M
EPS (Diluted)
$0.44
Free Cash Flow
-49.6M
Total Assets
2.4B
Cash
342.1M
Profitability Ratios
Gross Margin
N/A
Operating Margin
8.9%
Net Margin
3.4%
ROE
1.2%
ROA
0.5%
FCF Margin
-12.8%
Balance Sheet & Liquidity
Current Ratio
2.15x
Quick Ratio
1.79x
Debt/Equity
0.71x
Debt/Assets
56.0%
Interest Coverage
3.66x
Long-term Debt
754.8M
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: 2026-05-07T11:00:04.938216 |
Data as of: 2026-03-31 |
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