EQUATOR Beverage Co

Profitable, fast-growing micro-cap beverage maker but razor-thin margins and no standout franchise keep it mid-pack.

Strengths

• Revenue +29% with ~700bps gross-margin expansion to 45% and a return to operating/net profit after a FY2024 loss
• ROA 4.1% (68th pct), OCF margin 5.1% (68th pct) and positive operating cash flow ($212k) with reduced debt

Risks

• Net margin only 1.2% and ROE 8.9% (mid-pack 55th pct) — no metric stands out; tiny $4.2M revenue base, two employees, OTCQB
• Intense beverage competition, customer/retail concentration and input-cost/tariff volatility against a thin liquidity cushion ($219k cash)

Notable findings

• Customer concentration~55% of revenue from one customer/distributor — Cost of Revenue and Gross Margin Cost of revenue was $2,320,520, or 55% of revenue, compared to 62% in the prior year
• Buying back stockNet buyback — share count -45%/yr over 1y
• Revenue declineRevenue -11.5% YoY