MRVI

Financial health: Weak1.7/10

1 strength, 7 concerns. Weakest points: debt to equity, net debt vs cash flow, return on equity and 4 more.

• Debt to equity: 1.37 (Concern, benchmark < 0.5) — Debt of 1.37x equity is high against the 0.5x benchmark. It has deteriorated over the last 4 years.
• Net debt vs cash flow: — (Concern, benchmark < 4 years) — Carries $74.9M of net debt while free cash flow is negative, so the debt is not being repaid from the business.
• Current ratio: 6.60 (Strong, benchmark > 1.5) — Short-term assets cover 6.60x short-term liabilities, against Graham's 1.5x floor. It has deteriorated over the last 4 years.
• Return on equity: -61.6% (Concern, benchmark > 15%) — Earns -61.6% on shareholder equity, well short of the > 15% mark.
• Gross margin: 18.3% (Concern, benchmark > 40%) — Keeps 18.3% of revenue after the direct cost of sales, well short of the > 40% mark.
• Net margin: -70.4% (Concern, benchmark > 10%) — Turns -70.4% of revenue into profit, well short of the > 10% mark.
• Free cash flow: -$70.7M (Concern, benchmark positive) — Burned $70.7M of cash after capital spending, so operations did not fund themselves. It has deteriorated over the last 4 years.
• Revenue growth: -28.3% (Concern, benchmark > 10%) — Revenue changed -28.3% year on year, well short of the > 10% mark.
• Earnings growth: 9.7% (Watch, benchmark > 10%) — Earnings changed 9.7% year on year, short of the > 10% mark.