Company Overview
CleanCore Solutions, Inc. is a specialized manufacturer focused on the development and production of cleaning products that generate pure aqueous ozone for professional, industrial, and home applications. The company operates within the Industrials sector, specifically the Pollution & Treatment Controls industry, which categorizes it as a provider of environmental solutions and treatment technologies. This small-cap entity maintains a market capitalization of $2.89M and employs a workforce of 15 individuals to support its production and distribution efforts. The annual revenue generated over the trailing twelve months is $3.42M, a figure that, when combined with the modest market cap, indicates a company with significant recent expansion but limited historical scale relative to its current valuation.
Financial Health
The company reported a revenue of $3.42M for the trailing twelve months, yet the net income stands at -$122,609,216, revealing a massive discrepancy that highlights severe cost structures or accounting adjustments that far outweigh reported earnings. The EBITDA figure of $-33,015,848 further illustrates that operational cash generation is currently negative, suggesting high burn rates relative to current sales volumes. Free cash flow is reported at $-7,468,357, indicating that the company is consuming cash reserves to fund operations rather than generating surplus liquidity for reinvestment or debt repayment. Despite the negative operating income, the gross margin remains positive at 58.5%, which suggests that the core production costs are well-managed relative to the cost of goods sold, even if overhead expenses are eroding profitability. However, the operating margin is -1938.3% and the profit margin is 0.0%, figures that indicate extreme operational leverage issues or non-operating losses that distort the overall profitability picture for an investor analyzing operational efficiency. On the balance sheet, the company holds $5.44M in cash against total debt of $347,473, while the debt-to-equity ratio stands at 0.37, suggesting a balance sheet structure that is not heavily leveraged despite the cash burn. The current ratio is 1.47, which indicates that the company possesses sufficient short-term assets to cover its short-term liabilities without immediate distress. Return on Equity is -255.4% and Return on Assets is -38.8%, metrics that reveal that management has not yet generated positive returns on the capital invested by shareholders or utilized in the asset base.
Valuation Assessment
The trailing P/E ratio and forward P/E ratio are both listed as N/A, which implies that the market is currently pricing the stock based on assets or sales rather than earnings, as there are no positive earnings to support a traditional multiple. The price-to-book ratio is 0.81, indicating that the stock is trading at a discount to its book value, which often suggests that the market perceives high risk or that the asset base has been impaired by the significant losses recorded. The price-to-sales ratio is 0.84, a metric that provides a valuation anchor independent of profitability, while the EV/EBITDA stands at -2.16, reflecting a negative enterprise value multiple that is typical for pre-profitability companies in high-growth or distressed phases. The stock has seen significant price volatility, trading between a 52-week high of $7.82 and a 52-week low of $0.22. Assuming a current price near the lower end of this range given the negative earnings, the stock is trading at a substantial percentage below the 52-week high, reflecting the market's adjustment to the company's financial performance. The beta value is N/A, meaning there is no available historical data to quantify the stock's volatility relative to the broader market index.
Growth & Income
Revenue growth year-over-year is reported at 315.5%, demonstrating a rapid expansion in top-line sales, whereas earnings growth is N/A due to the absence of positive net income to measure against prior periods. This divergence implies that while the company is successfully increasing its sales volume, it has not yet achieved operational profitability to convert that revenue into earnings. The company does not pay dividends, as indicated by a dividend yield of N/A and a payout ratio of 0.0%, meaning that the company reinvests all available capital and cash reserves back into the business operations rather than distributing income to shareholders. The overall growth and income profile is characterized by aggressive top-line expansion coupled with a complete lack of current earnings power or dividend income, positioning the company as a speculative growth candidate rather than an income-generating asset.