FLEXIBLE SOLUTIONS INTERNATIONAL INC

Small specialty-chemical maker with mid-pack returns, customer concentration and negative free cash flow.

Strengths

• Solid balance sheet: current ratio 3.06 (78th pct), low D/E (0.10), positive operating margin (11.9%, 62nd pct)
• Diversified niche product lines (TPA, nitrogen conservation, EWCP) with decent gross margin (62nd pct)

Risks

• Negative FCF (-$0.59M, FCF margin -1.5%) and weak returns (ROE 2%, ROA 1.3%) on declining EWCP/TPA orders
• Concentration in three key customers, a Lygos investment impairment, key-man dependence and high fixed-cost base

Notable findings

• Auditor changeRecent 8-K item 4.01 8-K ↗
• Cash burnNegative free cash flow (-0.6M)
• Customer concentration~16% of revenue from one customer/distributor — Revenues from shipments made outside of the United States accounted for approximately 16% of our revenues in the year ended December 31, 2025, 24% in the year ended December 31, 2024 and 21% in the ye
• Insider sellingInsider selling — 5 open-market sale(s) by 1 insider(s) (~$788,550, last 6mo) Form 4 ↗