Southland Holdings, Inc. — Earnings Quality Grade F
SLND · Industrials
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 19 days (109 → 127)
Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.
AR outpaced revenue for 2 consecutive years
Revenue -21.2%, CFFO 760.5%. Cash follows revenue
Expense Quality
Inventory -42.2% vs COGS -11.1%. Normal
CapEx growth -48.1% vs revenue -21.2%. Normal
SG&A/Gross Profit = -39.7%, excellent (<30%)
Gross margin swung -13.7pp (-6.4% → -20.1%)
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 = -0.04
Accruals ratio = -32.7%. Low accruals
Cash $0.1B covers only 16% of debt $0.3B
Balance Sheet Health
Goodwill+Intangibles $0.0B = -2% of equity. Manageable
Interest coverage = -5.9x (<2x). Financial stress
Other assets -89.1% vs revenue -21.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -4.56 (< -2.22). Unlikely manipulator
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