Company Overview
Emerson Radio Corp. operates as a designer, source, importer, marketer, and seller of various houseware and consumer electronic products under the Emerson brand within the United States and international markets. The company functions within the Technology sector and specifically the Consumer Electronics industry, where it competes in the retail distribution of items such as microwave ovens, compact refrigerators, and toasters. Emerson Radio Corp. maintains a relatively small operational scale with a total market capitalization of $8.10M, an annual revenue of $6.63M, and a workforce of 23 employees. These valuation and revenue figures indicate that the company operates as a micro-cap entity with minimal revenue generation relative to its peers, suggesting a niche market position rather than broad industry dominance.
Financial Health
The company reported a trailing twelve-month revenue of $6.63M alongside a net income of -$5,238,000 and an EBITDA of -$4,685,000, revealing a significant cost structure where operating expenses and losses far exceed the top-line income generation. The free cash flow stands at -$510,875, which indicates that the company is currently consuming cash reserves rather than generating liquidity for reinvestment or debt repayment. Analysis of the three primary margins shows a gross margin of 2.4%, an operating margin of -43.7%, and a profit margin of -79.0%, all of which signal severe inefficiency and high overhead costs relative to sales volume. Regarding leverage, the company holds $13.27M in cash against $364,000 in debt, resulting in a debt-to-equity ratio of 1.96, which presents a complex picture of high leverage on paper but substantial liquidity buffers. The current ratio is reported at 14.74, suggesting an extremely strong position regarding short-term liquidity and the ability to meet obligations due within a year. Finally, the return on equity is -24.7% and the return on assets is -15.8%, metrics that reveal management has been ineffective in generating positive returns on the capital deployed or owned by the company.
Valuation Assessment
The trailing P/E ratio is N/A due to the lack of net income, while the forward P/E is listed at 0.09, a mathematical anomaly that implies the market is pricing in zero or negative expected earnings in the near term. The price-to-book ratio is 0.53, indicating that the market values the company at significantly less than its accounting book value, often seen in distressed or turnaround scenarios. Alternative valuation metrics include a price-to-sales ratio of 1.22 and an EV/EBITDA of 0.32, which suggest the stock is priced at a very low multiple of sales and enterprise value relative to earnings, though the negative earnings render traditional earnings multiples less meaningful. The 52-week high is $0.85 and the 52-week low is $0.28, meaning the current trading price sits below the high and above the low, reflecting high volatility within a narrow price band. The beta value is 0.23, which indicates that the stock price exhibits low volatility relative to the broader market and moves with less intensity than the overall index.
Growth & Income
Revenue growth year-over-year is -52.8%, while earnings growth is N/A, implying that the company is contracting rapidly in terms of sales volume and has not yet demonstrated a recovery in profitability. Because the company reports a net loss and a payout ratio of 0.0%, it is not a dividend payer, meaning it does not distribute income to shareholders but instead retains earnings which are currently insufficient to cover losses. The dividend yield is N/A, confirming the absence of a dividend program, which forces investors to rely on potential capital appreciation rather than income streams for returns. Overall, the growth and income profile is characterized by significant revenue contraction, negative earnings, and a complete absence of dividend distributions, presenting a high-risk scenario with no current income support.