Company Overview
Intelligent Living Application Group Inc. operates as a manufacturer and seller of mechanical locksets, distributing these security products primarily to customers within the United States and Canada. The company functions within the Industrials sector, specifically inside the Building Products & Equipment industry, which focuses on essential infrastructure components for commercial and residential construction. With a market capitalization of $4.53M, an annual revenue of $5.34M, and an employee count of 238, the organization presents as a small-cap entity with a limited operational footprint. These financial metrics indicate that the company occupies a niche position in the building products market, where its scale is constrained by a modest market valuation and relatively low total revenue compared to larger industrial peers.
Financial Health
The company reported trailing twelve-month revenue of $5.34M, yet it recorded a net income loss of $-6,771,247 and an EBITDA of $-6,101,552, revealing a significant disconnect between top-line sales and profitability. The substantial gap between revenue and net income suggests a severe cost structure issue, where operating expenses and other deductions vastly exceed gross profits generated from sales. Free cash flow stands at $-362,516, which indicates a lack of financial flexibility as the company is currently burning cash rather than generating liquidity for operations or debt repayment. Margins further highlight this distress, with a gross margin of 16.0%, an operating margin of -232.8%, and a profit margin of -126.8%, showing that the company loses money on every dollar of profit after covering all costs. On the balance sheet, cash holdings of $793,969 are insufficient to cover total debt of $1.73M, resulting in a debt-to-equity ratio of 15.65, which characterizes the company as highly leveraged. Despite the leverage, the current ratio of 4.27 indicates strong short-term liquidity, as current assets significantly exceed current liabilities, providing a buffer against immediate obligations. Return on Equity is -53.7% and Return on Assets is -29.1%, metrics that reveal management is currently destroying value rather than generating returns on the capital invested by shareholders.
Valuation Assessment
Trailing P/E and forward P/E are both listed as N/A, implying that the lack of earnings makes traditional earnings-based valuation methods inapplicable due to the company's negative net income position. The price-to-book ratio is 0.41, indicating that the market values the company at less than half of its book value, which suggests a deep discount relative to the net asset value recorded on the balance sheet. Alternative valuation metrics such as the price-to-sales ratio of 0.85 and EV/EBITDA of -0.90 suggest that the market is pricing in significant risk or potential turnaround scenarios given the negative multiple. The stock has traded between a 52-week high of $9.80 and a 52-week low of $2.04, placing the current price somewhere within this volatile range depending on market fluctuations. With a beta of 1.54, the stock exhibits price volatility that is significantly higher than the broader market, meaning it is expected to move with greater magnitude than the overall index during periods of market instability.
Growth & Income
Revenue growth year-over-year is -48.5%, while earnings growth is N/A due to negative earnings, indicating a sharp contraction in the business rather than growth. Since the company is not a dividend payer with a dividend yield of N/A and a payout ratio of 0.0%, it does not distribute cash to shareholders, effectively reinvesting or retaining earnings in the absence of positive net income. The overall growth and income profile is characterized by negative revenue expansion and a complete absence of dividend income, reflecting a period of financial contraction rather than organic expansion or shareholder return generation.