Company Overview
NextPlat Corp operates as a diversified entity within the technology sector, specifically functioning in the software-application industry by providing services across healthcare and e-commerce markets. The company executes its business model through two distinct segments, namely e-Commerce Operations and Healthcare Operations, serving a global footprint that includes Europe, North America, South America, Asia-Pacific, and Africa. Its operational scope encompasses the management of full-service retail and specialty services pharmacies, alongside e-commerce activities. As of the latest reporting period, the company holds a market capitalization of $12.76M and generated annual revenue of $57.15M while employing 162 individuals. These valuation and revenue figures indicate that NextPlat Corp functions as a small-cap enterprise, suggesting it operates with a limited market presence relative to large-cap technology peers and possesses a workforce size that is consistent with early-stage growth or turnaround scenarios in the software application sector.
Financial Health
The company reported revenue of $57.15M over the trailing twelve months, yet it recorded a net income of $-8,334,000 and an EBITDA of $-7,454,000. The significant negative gap between the $57.15M revenue and the $-8,334,000 net income reveals a cost structure where operating expenses, including research and development, sales, and general administrative costs, substantially exceed gross profits, resulting in a bottom-line loss. Free cash flow stands at $-2,746,000, which indicates that the company is currently burning cash rather than generating liquidity, thereby limiting its immediate financial flexibility to fund organic growth without external capital injections. The company maintains a gross margin of 19.3%, an operating margin of -14.5%, and a profit margin of -14.6%, where the negative operating and profit margins signify that the company is not yet profitable on an operational or net basis. On the balance sheet, the company holds $13.93M in cash against $1.72M in debt, supported by a debt-to-equity ratio of 7.96, which suggests a highly leveraged position relative to equity but is partially offset by a robust cash hoard. The current ratio is 3.56, indicating that the company possesses 3.56 dollars of current assets for every dollar of current liabilities, which points to strong short-term liquidity and the ability to meet obligations as they come due. Return on Equity is -32.5% and Return on Assets is -14.4%, metrics that reveal management has been ineffective at generating positive returns on the capital invested by shareholders or utilized in asset operations during this period.
Valuation Assessment
The trailing twelve-month P/E ratio is N/A, and the forward P/E is also N/A, which implies that traditional earnings-based valuation models are not applicable due to the company's lack of positive earnings, preventing any clear implication of an earnings trajectory based on these specific metrics. The price-to-book ratio is 0.58, which indicates that the market values the company at approximately 58% of its net asset book value, suggesting the stock trades at a discount to its tangible book value rather than a premium. The price-to-sales ratio is 0.22, and the EV/EBITDA is -0.05, where these alternative valuation metrics suggest the company is priced very cheaply relative to its sales revenue, though the negative EV/EBITDA reflects the inability to value the firm based on earnings multiples due to current losses. The 52-week high is $1.11 and the 52-week low is $0.41, meaning the current price sits within this range but the exact percentage below the high requires the current price which is not explicitly defined in the facts, yet the spread between the high and low demonstrates significant price volatility over the past year. The beta value is 1.27, which means the stock price is expected to be 27% more volatile than the broader market, indicating higher risk exposure for investors compared to a market-neutral asset.
Growth & Income
Revenue growth year-over-year is -10.5%, while earnings growth is N/A, indicating that the company is currently experiencing a contraction in sales volume rather than expansion. Since earnings growth is N/A due to negative net income, the comparison between earnings and revenue growth is not applicable in a traditional sense, but the decline in revenue suggests a broader headwind affecting the business model rather than a divergence in profitability margins. As a non-dividend payer, the company has a dividend yield of N/A and a payout ratio of 0.0%, meaning it does not distribute profits to shareholders and instead retains all earnings, though these are currently losses, for potential reinvestment into operations. The overall growth and income profile is characterized by declining revenue, negative cash generation, and a total absence of dividend income, reflecting a phase of financial distress or early-stage experimentation rather than mature growth or income generation.