Overall Score

Revenue Quality

Revenue quality remains mixed, with gross margin at 17.3% and asset turnover at 1.52x, indicating a workable but not especially efficient operating model.

The business still shows weak bottom-line conversion, with net profit margin at -0.6% and operating margin at 0.3%.

Profitability

Profitability remains weak, with return on equity at -3.2%, return on assets at -0.9%, and return on invested capital at 0.7%.

EBIT margin is only 0.4% and EBITDA margin is 1.6%, leaving little cushion against operating volatility.

Cash Generation

Cash generation remains poor, with operating cash flow margin at -4.0% and free cash flow margin at -0.6%.

Free cash flow to equity is positive at $116.1M, but enterprise-level cash conversion remains weak with EV/FCF at -6.6x and EV/OCF at -8.7x.

Balance Sheet

Liquidity is solid, with a current ratio of 2.21x and quick ratio of 1.04x.

Leverage remains elevated, with debt-to-equity at 1.03x and net debt to EBITDA at 13.7x, limiting financial flexibility.

Capital Efficiency

Capital efficiency is modest, with return on capital employed at 0.7% and return on capital at 0.7%.

Working capital management is acceptable, as the cash conversion cycle is 88.6 days and inventory turns are 4.0x.