Investment Thesis
ADM Tronics demonstrates modest revenue growth and reasonable profitability margins, but is severely constrained by negative operating cash flow and deteriorating liquidity metrics. The company's ability to sustain operations and fund growth is questionable given the widening gap between accounting profits and actual cash generation.
ADMT Strengths
- Solid gross margin of 42.4% indicates strong product pricing power and cost management
- Positive net income of 98.1K with 3.7% net margin shows underlying profitability
- Debt-free balance sheet with zero long-term debt provides financial flexibility
ADMT Risks
- Negative operating cash flow of -82.8K and free cash flow of -85.1K indicate the company is consuming cash despite reporting net income; significant red flag for sustainability
- Liquidity deterioration with current ratio of 1.14x and quick ratio of 0.81x suggests potential working capital constraints
- Minimal operating margin of 1.0% leaves almost no cushion for operational disruptions or revenue volatility; operating income of only 27.3K is razor-thin relative to 2.7M revenue
Key Metrics to Watch
- Operating cash flow trend - must return to positive to validate reported profitability
- Working capital management and accounts receivable collection efficiency
- Revenue sustainability - verify if 7.8% YoY growth can be maintained without eroding cash position
ADMT Financial Metrics
ADMT Profitability Ratios
ADMT Balance Sheet & Liquidity
ADMT 5-Year Financial Trend
5-Year Trend Summary: ADM TRONICS UNLIMITED, INC.'s revenue has remained relatively flat over the 5-year period, with a 8% decline. The most recent EPS of $-0.01 indicates the company is currently unprofitable.
ADMT Growth Metrics (YoY)
ADMT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $749.5K | -$18.2K | $0.00 |
| Q2 2025 | $840.0K | -$52.7K | N/A |
| Q1 2025 | $762.7K | -$132.3K | N/A |
| Q3 2024 | $696.5K | -$18.2K | N/A |
| Q2 2024 | $754.1K | -$52.7K | N/A |
| Q3 2023 | $696.5K | -$30.7K | N/A |
| Q2 2023 | $754.1K | -$38.7K | N/A |
| Q3 2022 | $749.7K | -$67.9K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ADMT Capital Allocation
ADMT SEC Filings
Access official SEC EDGAR filings for ADM TRONICS UNLIMITED, INC. (CIK: 0000849401)