PetVivo Holdings Inc

PetVivo operates with a liquidity position that is below the industry median, as evidenced by a current ratio of 0.74, indicating that the company's current liabilities exceed its current assets. The company's liquidity_fpt score is also below the industry median, with a negative operating cash flow of -$7.42 million and a free cash flow of -$2.65 million, both of which are significant red flags for short-term solvency.

Profitability metrics are deeply negative, with a return on equity of -3.86 and a return on assets of -0.85, both of which are far below the industry median for Medical Equipment, Supplies & Distribution. The company reported a net loss of $2.65 million and an operating loss of $2.65 million in the latest period. These figures suggest that the company is not currently generating returns that justify its cost of capital.

The company's revenue is concentrated in a single business model, with no disclosed geographic diversification in the input data. This lack of segment or geographic diversification increases exposure to market-specific risks, particularly in the veterinary healthcare space. The absence of segment data in the input data prevents a more granular analysis of revenue concentration.

Looking ahead, the company's revenue outlook is negative, with no disclosed growth trajectory in the input data. The latest financials show a decline in operating performance, and the company has not provided forward-looking guidance that would suggest a reversal of this trend. The absence of a disclosed capex plan or R&D investment also limits visibility into future growth drivers.

The risk assessment highlights a medium liquidity risk and a low dilution risk. The company has a debt-to-equity ratio of 0.25, which is relatively low, but its negative operating cash flow and free cash flow raise concerns about its ability to service debt. The risk assessment also notes that net cash is negative after subtracting total debt, which could pressure the company to raise additional capital in the near term.

Recent events include the filing of a 10-K for the fiscal year ending December 31, 2023, which disclosed the company's financial challenges, including a net loss and negative cash flows. No recent earnings call transcripts or press releases were provided in the input data, limiting visibility into management's strategic response to these challenges.

Revenue grew 76.9% annually over four years, demonstrating strong top-line expansion despite ongoing profitability challenges.

Cash conversion ratio of 2.8 exceeds the 75th percentile of the diversified medical equipment cohort.

Debt-to-equity ratio of 0.25 is above the median for the diversified medical equipment cohort.

Gross profit reached $994,850 in the latest period, indicating positive gross margins despite operating losses.

Dilution risk is assessed as low, suggesting limited immediate threat to shareholder equity from share issuance.

Net income deteriorated to -$8.4 million, with net margins in the bottom quartile of the cohort.

Free cash flow turned negative at -$8.8 million, worsening significantly from the prior period.

Credit risk is flagged as high, indicating significant concerns regarding the company's ability to meet debt obligations.

Return on equity of -3.86% places the company in the bottom quartile of its peer group.

Long-term debt surged to $1.94 million, reflecting increased leverage and potential financial strain.

Revenue $968.7k, +5,6% YoY; Operating income −25,4% YoY.

• ▍Revenue $968.7k, +5,6% YoY
• ▍Operating income −25,4% YoY
• ▍Net income −25,7% YoY
• ▍Free cash flow −23,4% YoY
• ▍Net margin -1130.9%

Revenue $917.2k, +693,5% YoY; Operating income −73,8% YoY.

• ▍Revenue $917.2k, +693,5% YoY
• ▍Operating income −73,8% YoY
• ▍Net income −73,8% YoY
• ▍Free cash flow −75,9% YoY
• ▍Net margin -950.5%

Revenue $115.6k, +818,8% YoY; Operating income −215,6% YoY.

• ▍Revenue $115.6k, +818,8% YoY
• ▍Operating income −215,6% YoY
• ▍Net income −42,4% YoY
• ▍Free cash flow −42,7% YoY
• ▍Net margin -4338.6%