Présentation de l'entreprise
Chicago Rivet & Machine Co. operates within the North American fastener industry, providing essential manufacturing solutions through its two primary segments: Fasteners and Assembly Equipment. The Fastener segment focuses on the production and sale of rivets, cold-formed fasteners, components, and screw machine products, while the Assembly Equipment segment engages in the manufacturing of machinery designed to facilitate these assembly processes. This industrial entity is categorized under the broader Industrials sector, specifically within the Tools & Accessories industry, positioning it as a provider of critical infrastructure components for various downstream manufacturing applications. The company's market capitalization stands at $9.72M, accompanied by an annual revenue of $27.89M and a workforce of 158 employees, indicating a small-cap profile typical of niche industrial manufacturers. These valuation figures suggest the company operates with a modest scale relative to large-cap industrial peers, reflecting its status as a specialized player rather than a dominant market leader with widespread diversification.
Santé financière
The company reported a trailing twelve-month revenue of $27.89M, yet recorded a net income of $-1,083,214 and an EBITDA of $-318,590, revealing a significant gap between top-line generation and bottom-line profitability. This divergence highlights a cost structure where operating expenses and interest obligations exceed earnings before interest, taxes, depreciation, and amortization, resulting in an overall loss despite substantial sales volume. Free cash flow for the period was $-652,410, which indicates that the company is currently burning cash rather than generating liquidity, thereby limiting its financial flexibility to fund operations or capital expenditures without external financing. The gross margin sits at 14.8%, suggesting moderate pricing power or high raw material costs, while the operating margin is negative at -20.9% and the profit margin is -3.9%, signaling that fixed cost burdens and interest expenses are eroding a significant portion of revenue. On the balance sheet, the firm holds $1.72M in cash against $920,963 in debt, resulting in a debt-to-equity ratio of 4.89, which classifies the company as highly leveraged despite its cash buffer. The current ratio of 5.21 demonstrates robust short-term liquidity, implying that current assets are more than five times current liabilities, providing ample coverage for immediate obligations. However, the return on equity is -5.6% and the return on assets is -4.1%, metrics that reveal management is currently destroying shareholder value and utilizing assets inefficiently due to persistent operational losses.
Évaluation de la valorisation
Trailing twelve-month P/E and forward P/E ratios are listed as N/A, which implies that without positive earnings, traditional earnings-based valuation multiples cannot be applied to assess the stock's intrinsic value or expected earnings trajectory. The price-to-book ratio is 0.52, indicating that the market values the company at less than half of its net asset book value, suggesting the market discounts the firm due to its negative earnings or high leverage. Alternative valuation metrics such as the price-to-sales ratio of 0.35 and an EV/EBITDA of -28.00 further reflect the challenging financial environment, where the negative EV/EBITDA confirms that enterprise value exceeds earnings capacity due to losses. The 52-week high is $15.00 and the 52-week low is $8.15; assuming a current trading price near the lower end of this volatility range, the stock is trading at approximately 83.3% below the 52-week high if priced at $8.15, or significantly lower if priced below that threshold. With a beta of 0.27, the stock exhibits low price volatility relative to the broader market, behaving less sensitively to general market movements than the average large-cap stock.
Growth & Income
Revenue growth year-over-year accelerated to 45.9%, whereas earnings growth is N/A due to the current period of losses, implying that top-line expansion has not yet translated into profitability and that the earnings trajectory remains negative. The company distributes a dividend yield of 1.2% with a payout ratio of 225.6%, a figure that is mathematically unsustainable as the payout ratio exceeds 100%, meaning the company is paying dividends from cash reserves rather than current earnings. Given the negative net income and high payout ratio, the company is technically unable to reinvest earnings into growth through dividend retention, as it must draw from its cash balance of $1.72M to maintain the payout. The overall growth and income profile presents a contradictory picture of strong top-line expansion offset by severe profitability issues and a dividend policy that relies on balance sheet depletion rather than organic earnings generation.