📊 CFOR Key Takeaways
Investment Thesis
CapForce demonstrates exceptional profitability metrics with 62.3% net margins and strong returns on equity (24.5%), but these gains are severely undermined by negative free cash flow of -$1.8M despite positive net income of $2.5M, indicating potential accounting quality issues or unsustainable capital structures. The company's high leverage (0.91x debt/equity) combined with deteriorating cash generation and minimal insider confidence (zero Form 4 filings in 90 days) raises red flags about the sustainability of reported earnings.
CFOR Strengths
- Exceptional net profit margin of 62.3% with revenue growth of 52% YoY
- Strong liquidity position with 7.06x current ratio and minimal cash requirements
- Excellent return metrics: 24.5% ROE and 19.7% ROA indicate efficient capital deployment
- Outstanding operating margin of 54.4% suggests pricing power and operational efficiency
CFOR Risks
- Severe cash flow deterioration: negative $1.8M free cash flow contradicts $2.5M net income, indicating potential earnings quality concerns
- Significant long-term debt of $9.2M (0.91x debt/equity) with only $414.2K cash on hand creates refinancing risk
- Operating cash flow is deeply negative at -$978.7K, suggesting cash is being consumed rather than generated by operations
- Zero insider Form 4 filings in 90 days indicates lack of insider confidence despite reported strong earnings
- Capital expenditure of $800.4K against negative operating cash flow suggests unsustainable investment levels
Key Metrics to Watch
- Operating cash flow trends - must turn positive to validate earnings quality
- Free cash flow conversion - critical to assess sustainability of capital structure
- Debt service capacity and refinancing needs given minimal cash relative to $9.2M long-term debt
- Insider transaction activity as indicator of management confidence in fundamentals
- Net working capital changes to identify potential timing or accounting adjustments inflating net income
CFOR Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 7.06x current ratio provides a solid financial cushion.
CFOR Profitability Ratios
CFOR vs Healthcare Sector
How CapForce Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CFOR Balance Sheet & Liquidity
CFOR 5-Year Financial Trend
5-Year Trend Summary: CapForce Inc.'s revenue has grown significantly by 34% over the 5-year period, indicating strong business expansion. The most recent EPS of $-41.47 indicates the company is currently unprofitable.
CFOR Growth Metrics (YoY)
CFOR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $196.1K | -$608.7K | $-0.06 |
| Q2 2025 | $28.0K | -$1.3M | $0.30 |
| Q1 2025 | $168.1K | $288.0K | $-0.04 |
| Q3 2024 | $196.1K | -$4.1M | $1.35 |
| Q2 2024 | $28.0K | $288.0K | N/A |
| Q1 2024 | $168.1K | $386.0K | $0.21 |
| Q3 2023 | $448.7K | -$4.1M | $-0.46 |
| Q2 2023 | $736.1K | -$5.8M | $-0.93 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CFOR Capital Allocation
CFOR SEC Filings
Access official SEC EDGAR filings for CapForce Inc. (CIK: 0001293818)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CFOR
What is the AI rating for CFOR?
CapForce Inc. (CFOR) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CFOR's key strengths?
Exceptional net profit margin of 62.3% with revenue growth of 52% YoY. Strong liquidity position with 7.06x current ratio and minimal cash requirements.
What are the risks of investing in CFOR?
Severe cash flow deterioration: negative $1.8M free cash flow contradicts $2.5M net income, indicating potential earnings quality concerns. Significant long-term debt of $9.2M (0.91x debt/equity) with only $414.2K cash on hand creates refinancing risk.
What is CFOR's revenue and growth?
CapForce Inc. reported revenue of $4.0M.
Does CFOR pay dividends?
CapForce Inc. does not currently pay dividends.
Where can I find CFOR SEC filings?
Official SEC filings for CapForce Inc. (CIK: 0001293818) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CFOR's EPS?
CapForce Inc. has a diluted EPS of $0.24.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.