Aug. 22 at 3:30 PM
$SRG — STRONG SELL 🔴
Liquidity looks adequate with a 6.2x current ratio and
$48.4M cash, but the business is still burning
$23.3M of levered free cash flow TTM and
$21M of operating cash flow TTM.
Revenue fell to
$2.1M in 2026-03-31 from
$4.8M in 2025-09-30 and
$4.2M in 2025-12-31, while Q1 2026 YoY revenue was down 55.4%.
Margins are deeply negative at -154.9% operating margin and -186.2% FCF margin, with gross margin only 7.4% and ROE at -16.7%.
Valuation still screens rich at 9.7x EV/Revenue and 9.6x Price/Sales, despite
$50.3M debt,
$5.19 book value per share, and a narrow asset-sale optionality moat that depends on execution.
Full research: https://lf0.com/research/seritage-growth-stock-analysis-srg/?utm_source=stocktwits&utm_medium=social&utm_campaign=research_distribution
