Investment Thesis
Adamant DRI is a severely distressed company with massive operating losses, negative cash flow, and liabilities exceeding assets despite minimal revenue. The company is burning cash rapidly with operating margins of -1003.7% and negative free cash flow of -46.5K, indicating fundamental operational failure rather than temporary cyclicality.
ADMG Strengths
- Current ratio of 1.98x suggests adequate short-term liquidity relative to current liabilities
- Positive gross margin of 27.3% indicates potential product pricing power if operational scale improves
- No long-term debt obligations reduces refinancing risk
ADMG Risks
- Liabilities of 91.1K exceed total assets of 70.0K, indicating negative tangible net worth and solvency concerns
- Operating cash flow of -33.5K with free cash flow of -46.5K demonstrates the company is consuming cash at an unsustainable rate
- Revenue of only 6.5K is insufficient to cover operating expenses of 64.8K, reflecting a fundamentally non-viable business model at current scale
- Massive operating losses with -1003.7% operating margin indicate severe unit economics or massive overhead burden
- Negative ROE of -124.4% and ROA of -61.6% show shareholder capital is being destroyed
- No insider activity in 90 days suggests lack of management confidence
Key Metrics to Watch
- Quarterly revenue trends - critical need to demonstrate consistent top-line growth trajectory
- Operating cash flow and cash runway - company must achieve positive OCF within quarters to avoid depletion of 27.2K cash reserves
- Operating margin improvement - path to breakeven with current cost structure must be demonstrated
- Debt-to-equity ratio - monitor for additional financing needs that could heavily dilute shareholders
ADMG Financial Metrics
ADMG Profitability Ratios
ADMG Balance Sheet & Liquidity
ADMG 5-Year Financial Trend
5-Year Trend Summary: ADAMANT DRI PROCESSING & MINERALS GROUP's revenue has grown significantly by 168,000% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.10 indicates the company is currently unprofitable.
ADMG Growth Metrics (YoY)
ADMG Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2019 | $6.5K | -$107.2K | N/A |
| Q3 2018 | $590.4K | -$362.1K | N/A |
| Q3 2017 | $1.5K | -$1.2M | N/A |
| Q1 2017 | N/A | -$1.3M | N/A |
| Q3 2016 | N/A | -$1.2M | N/A |
| Q2 2016 | $488.5K | -$1.0M | N/A |
| Q1 2016 | N/A | -$1.3M | N/A |
| Q3 2015 | N/A | -$539.6K | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ADMG Capital Allocation
ADMG SEC Filings
Access official SEC EDGAR filings for ADAMANT DRI PROCESSING & MINERALS GROUP (CIK: 0001171008)