F

Hillman Solutions Corp. — Earnings Quality Grade F

HLMN · Industrials

Major red flags

Revenue
$1.6B
2025
Net Income
$40M
2025
Gross Margin
48.7%
Free Cash Flow
$35M
01

Screening Summary

13
Passed
2
Watch
2
Failed
-2.58
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 27 days, change -0 days YoY

A2AR vs Revenue Growth

AR growth 4.7% vs revenue growth 5.4%

A3Revenue vs CFFO

Revenue 5.4%, CFFO -42.6%. Cash follows revenue

02

Expense Quality

!
B1Inventory vs COGS

Inventory growth 20.4% exceeds COGS 4.1%

B2CapEx vs Revenue

CapEx growth -17.7% vs revenue 5.4%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 66.4%. Normal

B4Gross Margin

Gross margin 48.7%, change +0.7pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 2.61. Profits backed by cash

C2Free Cash Flow

FCF $0.0B, FCF/NI = 0.87

C3Accruals Ratio

Accruals ratio = -2.8%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 4% of debt $0.8B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $1.4B = 112% of equity. Over 50%

D2Leverage

Debt/EBITDA = 3.0x. Healthy

!
D3Soft Asset Growth

Other assets grew 53.7% vs revenue 5.4%

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -4% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.58 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-2.58
-4.0 Clean-2.22 Grey-1.78 Danger0
0.993
DSRI
AR growing faster than revenue?
0.987
GMI
Gross margin declining?
0.956
AQI
Asset quality deteriorating?
1.054
SGI
Revenue growth rate
0.947
DEPI
Depreciation slowing?
0.975
SGAI
SG&A ratio changing?
-0.0275
TATA
Accruals level
0.969
LVGI
Leverage increasing?
05

Altman Z-Score

2.3
Grey Zone
0 Distress1.102.605.0+ Safe
0.1651
Liquidity
-0.0758
Cumulative profit
0.048
Operating efficiency
1.0894
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25