Redwire has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Redwire Corp displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Redwire did not have earnings to cover the interest expense.
Redwire's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.52.
As of today, Redwire's Altman Z-Score is -0.70.
Competitive Comparison of Redwire's Financial Strength
For the Aerospace & Defense subindustry, Redwire's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Redwire's Financial Strength Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Redwire's Financial Strength distribution charts can be found below:
* The bar in red indicates where Redwire's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Redwire has a Z-score of -0.70, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -0.7 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Redwire (NYSE:RDW) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Redwire has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Redwire Financial Strength Related Terms
Thank you for viewing the detailed overview of Redwire's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Redwire Corp is engaged in mission-critical space solutions and reliable components for the next-generation space economy. It assists its customers in solving the complex challenges of future space missions and industries. The company's space infrastructure offerings include a broad array of modern products and services, which have been enabling space missions. The company's plan enables it to combine decades of flight heritage with a culture creating new technologies that are the building blocks of space infrastructure for government and commercial customers.
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