📊 RLEA Key Takeaways
Is RLEA a Good Investment? Thesis Analysis
Rubber Leaf exhibits severe financial distress with shrinking revenues (-29.2% YoY), negative operating cash flow (-$153.8K), and virtually no cash reserves ($1.1K). The disconnect between negative operating income (-$1.9M) and positive net income (+$2.9M) suggests non-operating gains masking fundamental operational deterioration. The company faces imminent liquidity crisis with current ratio of 0.58x and liabilities consuming 95% of assets.
Fundamentals show contracting revenue, weak gross margin, and sustained operating losses alongside severe liquidity stress (virtually no cash and sub-1.0x current ratio). The positive net income and outsized ROE appear driven by non-operating or one-time items, not durable earnings power, and cash flow from operations remains negative. With thin equity, negative interest coverage, and ongoing cash burn, the business faces elevated dilution/going-concern risk absent a swift operational turnaround or financing.
Why Buy RLEA? Key Strengths
- Technically positive net income of $2.9M
- Zero long-term debt reported
- Maintains some asset base of $6.1M
- Positive net income and EPS growth YoY
- Low capex intensity relative to revenue
- No long-term debt reported
RLEA Investment Risks to Consider
- Revenue declining 29.2% YoY with negative operating income of -$1.9M
- Critical cash position of $1.1K with negative operating cash flow of -$153.8K
- Liquidity crisis: current ratio 0.58x and quick ratio 0.45x indicate inability to cover short-term obligations
- Liabilities of $5.8M against equity of only $287.2K creates insolvency risk
- Negative free cash flow of -$261.3K while spending $107.5K on capex unsustainable
- Net income anomaly suggests one-time gains masking operational failure
- Severe liquidity stress (current ratio 0.58x, $1.1k cash)
- Earnings quality weak (operating loss, negative OCF; likely one-time gains)
- Revenue down 29% YoY with negative interest coverage
Key Metrics to Watch
- Quarterly operating cash flow and cash balance trends
- Revenue stabilization and operating margin recovery
- Debt restructuring or refinancing announcements
- Current and quick ratio trajectory toward minimum 1.0x threshold
- Operating cash flow
- Current ratio
RLEA Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
RLEA Profitability Ratios
RLEA vs Default Sector
How Rubber Leaf Inc compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is RLEA Overvalued or Undervalued?
Based on fundamental analysis, Rubber Leaf Inc appears fundamentally strong relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
RLEA Balance Sheet & Liquidity
RLEA 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Rubber Leaf Inc's revenue has declined by 73% over the 5-year period, indicating business contraction. The most recent EPS of $-0.05 indicates the company is currently unprofitable.
RLEA Growth Metrics (YoY)
RLEA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.1K | -$241.6K | $-0.01 |
| Q3 2024 | $2.1K | -$360.9K | $-0.01 |
| Q2 2024 | $370.5K | -$35.9K | $0.00 |
| Q1 2024 | $897.4K | -$199.3K | $0.00 |
| Q3 2023 | $143.4K | $12.0K | $0.00 |
| Q2 2023 | $370.5K | -$35.9K | $0.00 |
| Q1 2023 | $897.4K | -$76.7K | N/A |
| Q3 2022 | $478.0K | $12.0K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
RLEA Capital Allocation
RLEA SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Rubber Leaf Inc (CIK: 0001893657)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RLEA
What is the AI rating for RLEA?
Rubber Leaf Inc (RLEA) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 85% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RLEA's key strengths?
Claude: Technically positive net income of $2.9M. Zero long-term debt reported. ChatGPT: Positive net income and EPS growth YoY. Low capex intensity relative to revenue.
What are the risks of investing in RLEA?
Claude: Revenue declining 29.2% YoY with negative operating income of -$1.9M. Critical cash position of $1.1K with negative operating cash flow of -$153.8K. ChatGPT: Severe liquidity stress (current ratio 0.58x, $1.1k cash). Earnings quality weak (operating loss, negative OCF; likely one-time gains).
What is RLEA's revenue and growth?
Rubber Leaf Inc reported revenue of $4.9M.
Does RLEA pay dividends?
Rubber Leaf Inc does not currently pay dividends.
Where can I find RLEA SEC filings?
Official SEC filings for Rubber Leaf Inc (CIK: 0001893657) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RLEA's EPS?
Rubber Leaf Inc has a diluted EPS of $0.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RLEA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Rubber Leaf Inc has a STRONG SELL rating with 85% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RLEA stock overvalued or undervalued?
Valuation metrics for RLEA: ROE of 998.3% (sector avg: 15%), net margin of 58.5% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy RLEA stock in 2026?
Our dual AI analysis gives Rubber Leaf Inc a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is RLEA's free cash flow?
Rubber Leaf Inc's operating cash flow is $-153.8K, with capital expenditures of $107.5K. FCF margin is -5.3%.
How does RLEA compare to other Default stocks?
Vs Default sector averages: Net margin 58.5% (avg: 12%), ROE 998.3% (avg: 15%), current ratio 0.58 (avg: 1.8).