Commerce.com, Inc. - Series 1 — Earnings Quality Grade F
CMRC · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 53 days, change +1 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 2.8%, CFFO -2.9%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 196.7% is >2x revenue growth 2.8%
SG&A/Gross Profit = 71.5%, exceeds 70%
Gross margin 78.7%, change +2.1pp. 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 $0.0B, FCF/NI = -0.75
Accruals ratio = -14.5%. Low accruals
Cash $0.1B covers 85% of debt $0.2B
Balance Sheet Health
Goodwill+Intangibles $0.1B = 161% of equity. Over 50%
Debt/EBITDA = 25.6x (>4x). Interest coverage = -0.4x (<2x). Financial stress
Insufficient data
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -9% YoY. Normal
Manipulation Score
M-Score = -3.06 (< -2.22). Unlikely manipulator
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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