F

Infinity Natural Resources, Inc — Earnings Quality Grade F

INR · Energy

Major red flags

Revenue
$356M
2025
Net Income
$24M
2025
Gross Margin
53.9%
Free Cash Flow
-$168M
01

Screening Summary

10
Passed
3
Watch
4
Failed
-3.14
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 56 days, change +1 days YoY

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue 37.6%, CFFO 47.3%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth 68.0% vs revenue 37.6%. Normal

!
B3SG&A Ratio

SG&A/Gross Profit = 93.8%, exceeds 70%

B4Gross Margin

Gross margin 53.9%, change +1.8pp. Stable

03

Cash Flow Quality

!
C1CFFO vs Net Income

CFFO far exceeds NI (ratio 11.0x). Non-cash charges depressing profits

C2Free Cash Flow

FCF < 50% of Net Income for 3 years

C3Accruals Ratio

Accruals ratio = -19.2%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 2% of debt $0.2B

04

Balance Sheet Health

D1Goodwill + Intangibles

No goodwill. Clean balance sheet

!
D2Leverage

Interest coverage = 1.2x (<2x). Financial stress

D3Soft Asset Growth

Other assets -20.7% vs revenue 37.6%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions negative for 3 years

Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.

E2Goodwill Surge

No goodwill

06

Manipulation Score

F1Beneish M-Score

M-Score = -3.14 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-3.14
-4.0 Clean-2.22 Grey-1.78 Danger0
1.014
DSRI
AR growing faster than revenue?
0.967
GMI
Gross margin declining?
1.26
AQI
Asset quality deteriorating?
1.376
SGI
Revenue growth rate
1
DEPI
Depreciation slowing?
3.177
SGAI
SG&A ratio changing?
-0.1918
TATA
Accruals level
0.476
LVGI
Leverage increasing?
05

Altman Z-Score

1.89
Grey Zone
0 Distress1.102.605.0+ Safe
0.0468
Liquidity
-0.0036
Cumulative profit
0.0554
Operating efficiency
1.1681
Leverage

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