J W Mays Inc

J W Mays Inc exhibits a capital structure with a debt-to-equity ratio of 0.08, indicating a relatively low leverage position compared to industry norms. The company's liquidity position is characterized by a market price of $42.54 and a market cap of $85.75 million, with a price-to-book ratio of 1.62. However, the company's free cash flow is negative at -$829,490, suggesting potential challenges in maintaining liquidity without external financing.

Profitability metrics reveal a concerning trend, with a return on equity of -0.0016 and a return on assets of -0.0009, both significantly below the industry median. The company reported a net loss of $84,880, and an operating loss of $156,700, indicating operational inefficiencies. The gross profit margin of 28.7% is a key area for improvement, as it is below the industry average for real estate development firms.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic downturns and regulatory changes. The absence of segment-specific financial data limits the ability to assess the performance of individual business lines.

Looking ahead, the company's growth trajectory is uncertain. The current fiscal year is expected to show a decline in revenue, with no clear indication of recovery in the next fiscal year. The capital expenditure of -$2.06 million suggests a reduction in investment, which may impact long-term growth prospects. The operating cash flow of $2.85 million provides some buffer but is insufficient to cover the negative free cash flow.

Risk factors include a medium liquidity risk due to the negative net cash position after subtracting total debt. The dilution risk is currently low, but the company's negative net income and operating income could necessitate future equity issuances. The risk assessment highlights the need for improved operational efficiency and better cash flow management to sustain operations.

Recent events, including the latest financial filing, show a continued decline in earnings, with the last actual EPS at -$0.04. The company has not disclosed any significant strategic initiatives or new projects that could drive future growth. The absence of recent positive developments raises concerns about the company's ability to turn around its financial performance.

Revenue grew 4.1% year-over-year to $22.5 million, demonstrating top-line resilience despite operational challenges.

Net income improved 66.5% year-over-year, indicating a significant reduction in losses compared to the prior period.

The company maintains a low leverage band with a debt-to-equity ratio of 0.06, suggesting minimal financial distress risk.

Operating income surged 75.1% year-over-year, showing substantial improvement in core operational profitability metrics.

Dilution risk is assessed as low, providing some protection for existing shareholders against equity value erosion.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations or servicing debt.

Operating margin of -2.9% places the firm in the bottom quartile of its real estate cohort.

Return on equity is negative at -0.16%, underperforming the cohort median of 1.94% significantly.

Liquidity risk is rated as medium, suggesting potential challenges in meeting short-term financial obligations.

Revenue $5.7M, +3,0% YoY; Operating income −64,2% YoY.

• ▍Revenue $5.7M, +3,0% YoY
• ▍Operating income −64,2% YoY
• ▍Net income −195,9% YoY
• ▍Free cash flow −2 120,9% YoY
• ▍Net margin -1.6%

Revenue $5.6M, +5,0% YoY; Operating income +172,2% YoY.

• ▍Revenue $5.6M, +5,0% YoY
• ▍Operating income +172,2% YoY
• ▍Net income +202,2% YoY
• ▍Free cash flow +37,8% YoY
• ▍Net margin 1.5%

Revenue $5.6M; Operating income -$182.1k.

• ▍Revenue $5.6M
• ▍Operating income -$182.1k
• ▍Net margin -2.8%

Revenue $5.5M; Operating income $52.2k.

• ▍Revenue $5.5M
• ▍Operating income $52.2k
• ▍Net margin 0.5%

Revenue $5.5M; Operating income -$83.7k.

• ▍Revenue $5.5M
• ▍Operating income -$83.7k
• ▍Net margin -0.6%

Revenue $5.4M; Operating income -$156.7k.

• ▍Revenue $5.4M
• ▍Operating income -$156.7k
• ▍Net margin -1.6%

Revenue $21.6M, −4,3% YoY; Operating income −377,2% YoY.

• ▍Revenue $21.6M, −4,3% YoY
• ▍Operating income −377,2% YoY
• ▍Net income −390,1% YoY
• ▍Free cash flow −308,4% YoY
• ▍Net margin -1.9%

Revenue $22.6M, +5,5% YoY; Operating income +134,0% YoY.

• ▍Revenue $22.6M, +5,5% YoY
• ▍Operating income +134,0% YoY
• ▍Net income +88,3% YoY
• ▍Free cash flow +179,5% YoY
• ▍Net margin -0.4%

Revenue $21.4M, +5,8% YoY; Operating income −471,0% YoY.

• ▍Revenue $21.4M, +5,8% YoY
• ▍Operating income −471,0% YoY
• ▍Net income −279,0% YoY
• ▍Free cash flow −899,0% YoY
• ▍Net margin -3.3%

Revenue $20.2M; Operating income -$115.1k.

• ▍Revenue $20.2M
• ▍Operating income -$115.1k
• ▍Net margin 2.0%