📊 RTON Key Takeaways
Is Right On Brands, Inc. (RTON) a Good Investment?
Right On Brands faces severe financial distress with negative stockholders' equity (-$806.2K), critically inadequate liquidity (current ratio 0.17x), and persistent operating losses (-$51.3K operating cash flow). The company is technically insolvent on a book value basis with liabilities ($1.0M) nearly 5x total assets ($211.8K), creating acute restructuring or bankruptcy risk.
Why Buy Right On Brands, Inc. Stock? RTON Key Strengths
- Gross margin of 54.8% demonstrates underlying product profitability potential
- Low capital requirements (only $6K capex) suggest asset-light business model
- Minimal absolute debt load relative to larger companies, though unsustainable at current scale
RTON Stock Risks: Right On Brands, Inc. Investment Risks
- Negative stockholders' equity of -$806.2K indicates technical insolvency on balance sheet
- Critical liquidity crisis with current ratio of 0.17x signals inability to meet near-term obligations
- Operating cash flow of -$51.3K demonstrates cash burn from core business operations
- Zero revenue growth combined with -$391.9K net loss indicates structural business deterioration
- Negative interest coverage (-2.8x) shows inability to service debt from operations
- Imminent bankruptcy or restructuring risk given unsustainable financial position
Key Metrics to Watch
- Return to positive stockholders' equity - critical solvency indicator
- Operating cash flow trajectory - must turn positive to demonstrate operational viability
- Cash balance depletion rate - current $59.4K provides limited runway
- Revenue growth and path to profitability - current burn rate unsustainable
Right On Brands, Inc. (RTON) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
RTON Profit Margin, ROE & Profitability Analysis
RTON vs Consumer Sector: How Right On Brands, Inc. Compares
How Right On Brands, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Right On Brands, Inc. Stock Overvalued? RTON Valuation Analysis 2026
Based on fundamental analysis, Right On Brands, Inc. has mixed fundamental signals relative to the Consumer 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.
Right On Brands, Inc. Balance Sheet: RTON Debt, Cash & Liquidity
RTON Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Right On Brands, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.00 indicates the company is currently unprofitable.
RTON Revenue Growth, EPS Growth & YoY Performance
RTON Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $1.1M | $28.4K | $0.00 |
| Q2 2024 | $735.0K | -$91.8K | $0.00 |
| Q1 2024 | $406.0K | -$79.2K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Right On Brands, Inc. Dividends, Buybacks & Capital Allocation
RTON SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Right On Brands, Inc. (CIK: 0001580262)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RTON
What is the AI rating for RTON?
Right On Brands, Inc. (RTON) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are RTON's key strengths?
Claude: Gross margin of 54.8% demonstrates underlying product profitability potential. Low capital requirements (only $6K capex) suggest asset-light business model.
What are the risks of investing in RTON?
Claude: Negative stockholders' equity of -$806.2K indicates technical insolvency on balance sheet. Critical liquidity crisis with current ratio of 0.17x signals inability to meet near-term obligations.
What is RTON's revenue and growth?
Right On Brands, Inc. reported revenue of $1.1M.
Does RTON pay dividends?
Right On Brands, Inc. does not currently pay dividends.
Where can I find RTON SEC filings?
Official SEC filings for Right On Brands, Inc. (CIK: 0001580262) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RTON's EPS?
Right On Brands, Inc. has a diluted EPS of $0.00.
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 RTON a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Right On Brands, Inc. has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RTON stock overvalued or undervalued?
Valuation metrics for RTON: ROE of N/A (sector avg: 18%), net margin of -36.4% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy RTON stock in 2026?
Our dual AI analysis gives Right On Brands, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RTON's free cash flow?
Right On Brands, Inc.'s operating cash flow is $-51.3K, with capital expenditures of $6.0K. FCF margin is -5.3%.
How does RTON compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -36.4% (avg: 8%), ROE N/A (avg: 18%), current ratio 0.17 (avg: 1.5).