The Singing Machine Company, Inc. (SMDM) is a Consumer Electronics company in the Technology sector, currently trading at $0.19. It has a SharesGrow Score of 22/100, indicating a weak investment profile with 0 out of 7 criteria passed.
Financials: revenue is $23M, -19.3%/yr average growth. Net income is $1M, growing at -694.5%/yr. Net profit margin is 4.7% (thin). Gross margin is 20.3% (-2.5 pp trend).
Balance sheet: total debt is $915,000 with negative equity of -$11M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 0.59 (tight liquidity). Debt-to-assets is 5%. Total assets: $18M.
SharesGrow 7-Criteria breakdown: Value ?/100 (Fail), Growth 15/100 (Fail), Past 50/100 (Partial), Health 0/100 (Fail), Moat 20/100 (Fail), Future ?/100 (Fail), Income 30/100 (Fail).
