AREARE
US • —
$53.46
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
-9.5% YoY
Gross Margin
69.3%
Health Score
3/10
D/E Ratio
0.80
Confidence
LOW
Business Snapshot
The company operates in the real estate or asset-based sector, generating revenue primarily from tangible assets like properties or equipment, given its high gross margin and low price-to-book ratio. It appears to be a small or micro-cap entity given the absence of a market capitalisation figure in the available data. The business holds a significant asset base relative to its market price, as indicated by a Price/Book ratio of 0.55x, suggesting the market values it below the value of its net assets. A defining characteristic is its negative net margin of -36.3%, combined with declining revenue, which points to a company under significant operational strain.
Financial Health
The company reports a gross margin of 69.3%, but this is undermined by a deeply negative net margin of -36.3%, indicating that operating expenses or financing costs far exceed gross profits. The balance sheet shows a debt-to-equity ratio of 0.8x, which is manageable, but the current ratio of 0.28x signals an acute liquidity crisis — current assets cover less than a third of short-term obligations...
Risk Assessment
- EARNINGS QUALITY — Only 1 of the last 4 quarterly earnings reports beat estimates, indicating low management guidance credibility.
- LIQUIDITY — A current ratio of 0.28x is critically low, suggesting the company may struggle to meet short-term obligations.
- REVENUE DECELERATION — Revenue declined 9.5% year-over-year, a clear reversal from any prior growth, signalling weakening demand or market share loss.
- PROFITABILITY — A net margin of -36.3% confirms the business is deeply unprofitable, with operating costs far surpassing gross profits.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
The company reports a gross margin of 69.3%, but this is undermined by a deeply negative net margin of -36.3%, indicating that operating expenses or financing costs far exceed gross profits. The balance sheet shows a debt-to-equity ratio of 0.8x, which is manageable, but the current ratio of 0.28x signals an acute liquidity crisis — current assets cover less than a third of short-term obligations. Free cash flow is not available in the data, so the company's ability to generate cash for reinvestment or debt servicing cannot be confirmed. The positive gross margin provides a foundation, but the negative net margin and extremely low current ratio imply a high risk of financial distress or the need for external financing.
- EARNINGS QUALITY — Only 1 of the last 4 quarterly earnings reports beat estimates, indicating low management guidance credibility. - LIQUIDITY — A current ratio of 0.28x is critically low, suggesting the company may struggle to meet short-term obligations. - REVENUE DECELERATION — Revenue declined 9.5% year-over-year, a clear reversal from any prior growth, signalling weakening demand or market share loss. - PROFITABILITY — A net margin of -36.3% confirms the business is deeply unprofitable, with operating costs far surpassing gross profits. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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