Company Overview
SCWorx Corp. operates within the Healthcare sector, specifically focusing on the Health Information Services industry where it delivers specialized data content and solutions. The company's core business involves providing repair, normalization, and interoperability services for healthcare information, alongside developing and marketing healthcare information technology solutions to providers in the United States. At present, the organization employs a small team of seven individuals to execute its operations and service offerings. With a market capitalization of $1.95M and annual revenue of $2.78M, SCWorx Corp. is classified as a micro-cap entity, indicating a very small market presence and limited scale relative to larger industry peers. These financial dimensions suggest the company is in an early-stage or niche position where revenue generation is constrained by a minimal workforce, reflecting a high degree of specialization rather than broad market penetration.
Financial Health
The company reported revenue of $2.78M over the trailing twelve months, while net income stood at $-3,890,217, revealing a significant cost structure where operating expenses and losses vastly exceeded total revenue generation. EBITDA is not available for this period, which limits the ability to assess operating cash earnings before interest and taxes but highlights the reliance on other metrics for financial analysis. The free cash flow is recorded at $-3,426,862, indicating that the company is consuming cash reserves to fund its operations rather than generating excess liquidity for expansion or shareholder returns. Gross margin stands at 26.1%, suggesting that the company retains a moderate portion of revenue after direct costs, yet this positive gross margin is insufficient to cover overheads. Operating margin is -19.7%, demonstrating that general and administrative expenses are eroding profitability significantly, while profit margin reaches -139.7%, confirming that the company is currently unprofitable on a net basis. Liquidity analysis shows a cash balance of $684,295 against total debt of $152,683, resulting in a debt-to-equity ratio of 2.55, which indicates a leveraged balance sheet where liabilities exceed equity. Despite the leverage, the current ratio of 1.13 suggests the company maintains enough current assets to cover its short-term liabilities, though the margin of safety is relatively thin. Return on equity is -74.2% and return on assets is -10.5%, metrics that reveal management is currently destroying shareholder value and utilizing assets inefficiently to generate positive returns.
Valuation Assessment
Trailing P/E and forward P/E ratios are both listed as N/A due to the company's negative earnings, meaning traditional earnings-based valuation multiples cannot be applied to assess future earnings trajectory or current profitability expectations. The price-to-book ratio is 0.24, indicating that the market values the company at less than 25% of its book value, which often suggests the market perceives the assets as having limited utility or that future earnings potential is severely discounted. Price-to-sales ratio stands at 0.70, while EV/EBITDA is N/A; these alternative valuation metrics suggest the market prices the stock based on revenue rather than earnings, a common approach for unprofitable companies where sales growth is the primary value driver. The 52-week high is $1.37 and the 52-week low is $0.11, placing the stock's trading range at a wide spread of over 1,000% between its recent peak and trough. Without a specific current price provided in the facts to calculate a precise percentage, the wide range highlights significant price volatility and uncertainty regarding the fair value of the equity. Beta is 2.02, which implies that the stock's price volatility is more than twice that of the broader market, indicating high sensitivity to market movements and increased risk for price swings.
Growth & Income
Revenue growth year-over-year is -7.1%, while earnings growth year-over-year is N/A due to negative earnings, meaning earnings are not growing faster than revenue but rather declining in absolute terms alongside revenue contraction. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, indicating that all available earnings or cash reserves are retained rather than distributed to shareholders. Consequently, the company reinvests its financial resources into operations or attempts to cover losses rather than paying dividends, a strategy typical for growth-stage or distressed firms seeking to stabilize their financial position. The overall growth and income profile for SCWorx Corp. is characterized by declining revenue, negative profitability, and a lack of income distribution, presenting a challenging financial environment for stakeholders seeking capital appreciation or current income.