Investment Thesis
Alkaline Water operates with fundamental insolvency, holding negative stockholders' equity of -$8.1M while generating zero revenue growth and operating at -16.2% margins. The company faces an acute liquidity crisis with current ratio of 0.58x, minimal cash reserves of $414.6K, and negative operating cash flow of -$409K, indicating rapid asset depletion without operational viability.
Strengths
- Gross margin of 25.3% is reasonable for beverage sector
- Net loss improved 30.8% YoY showing some cost control
- Operates in established beverage category with consumer demand
Risks
- Negative stockholders' equity of -$8.1M indicates technical insolvency
- Liquidity crisis: current ratio 0.58x, quick ratio 0.34x, cannot meet obligations
- Negative operating cash flow burning $409K annually with only $414.6K cash remaining
- Zero revenue growth over past year with flat market position
- Negative interest coverage of -5.7x shows inability to service debt
- Financial data is nearly 3 years old (June 2023); current situation likely worse
- Zero insider buying signals lack of management confidence
Key Metrics to Watch
- Stockholders equity trend - trajectory toward solvency or continued deterioration
- Monthly cash burn rate and cash runway before depletion
- Operating cash flow return to positive territory
- Revenue growth and gross margin sustainability
- Debt restructuring or equity capital raise announcements
Financial Metrics
Revenue
14.9M
Net Income
-2.8M
EPS (Diluted)
$-0.28
Free Cash Flow
-409.0K
Total Assets
15.2M
Cash
414.6K
Profitability Ratios
Gross Margin
25.3%
Operating Margin
-16.2%
Net Margin
-19.0%
ROE
N/A
ROA
-18.7%
FCF Margin
-2.7%
Balance Sheet & Liquidity
Current Ratio
0.58x
Quick Ratio
0.34x
Debt/Equity
N/A
Debt/Assets
153.1%
Interest Coverage
-5.70x
Long-term Debt
N/A
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: 2026-04-19T10:36:20.625233 |
Data as of: 2023-06-30 |
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