Black Rock Coffee Bar, Inc. — Earnings Quality Grade F
BRCB · Consumer Cyclical
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 6 days, change -3 days YoY
AR growth -21.2% vs revenue growth 24.5%
Revenue grew 24.5% but CFFO declined -83.5%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
Inventory growth 41.0% exceeds COGS 22.2%
CapEx growth 54.1% is >2x revenue growth 24.5%
SG&A/Gross Profit = 70.4%, exceeds 70%
Gross margin 29.3%, change +1.3pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = -0.7%. Low accruals
Cash $0.0B covers only 17% of debt $0.2B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 33% of equity
Debt/EBITDA = 27.7x (>4x). Interest coverage = 0.5x (<2x). Financial stress
Insufficient data
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change -9% YoY. Normal
Manipulation Score
M-Score = -2.08 (grey zone)
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25