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CreditRiskMonitor was organized in Nevada in February 1977 and was engaged in the development and sale of nutritional food products from 1982 until October 22, 1993, when it sold substantially all of its assets. Effective January 19, 1999, the Company acquired the assets of the CreditRisk Monitor credit information service ( CM Service ) from Market Guide Inc.
Operating margin is thin at 2.89%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 1.6%, essentially flat. Margins also contracted 3.4pp. This is a business that needs a catalyst.
Free cash flow declined 72% versus the prior year, cash generation momentum has weakened. ROIC dropped from 6.79% to 3.90%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$20M
▲ +1.6% YoY
Net Income (TTM)
$917K
▼ -39.2% YoY
Op. Margin
2.29%
▼ -3.4pp YoY
ROIC
3.00%
▼ -2.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$1M
▼ -71.9% YoY
Op. Cash Flow (TTM)
$1M
▼ -66.3% YoY
Net Debt
-$17M
Net Cash Position
Cash & Equiv.
$17M
5Y CAGR: +5.0%
5Y CAGR: -5.4%
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