Redwire Corporation — Earnings Quality Grade F
RDW · Industrials
Major red flags
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 18 days (22 → 41)
Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.
AR growth 102.4% exceeds revenue growth 10.3%
Revenue grew 10.3% but CFFO declined -922.2%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
Inventory growth 2394.3% exceeds COGS 22.5%
CapEx growth 113.3% is >2x revenue growth 10.3%
SG&A/Gross Profit = 990.9%, exceeds 70%
Gross margin swung -9.5pp (14.6% → 5.2%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.2B)
Accruals ratio = -3.4%. Low accruals
Cash $0.1B covers 77% of debt $0.1B
Balance Sheet Health
Goodwill+Intangibles $1.1B = 98% of equity. Over 50%
Interest coverage = -4.4x (<2x). Financial stress
Other assets -81.2% vs revenue 10.3%. Normal
Write-offs normal
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 surged 739% YoY
Manipulation Score
M-Score = -0.47 (> -1.78). LIKELY MANIPULATOR
Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25