Waldencast plc — Earnings Quality Grade F
WALD · Consumer Defensive
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 38 days, change +4 days YoY
AR growth 9.9% vs revenue growth -0.7%
Revenue -0.7%, CFFO -45.3%. Cash follows revenue
Expense Quality
Inventory 2.8% vs COGS 8.4%. Normal
CapEx growth 21.7% is >2x revenue growth -0.7%
SG&A/Gross Profit = 135.5%, exceeds 70%
Gross margin 67.3%, change -2.7pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = -29.1%. Low accruals
Cash $0.0B covers only 20% of debt $0.1B
Balance Sheet Health
Goodwill+Intangibles $0.6B = 131% of equity. Over 50%
Interest coverage = -2.6x (<2x). Financial stress
Other assets 6.1% vs revenue -0.7%. Normal
No write-off data
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 change -29% YoY. Normal
Manipulation Score
M-Score = -3.86 (< -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