HNO International, Inc. (HNOI) Stock Analysis
HNO International, Inc. (HNOI) Stock Analysis
Overall Grade: F (Concerning)
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HNO International, Inc. faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | -257.8% | Below expectations |
| FCF Margin | -1812.7% | Cash flow pressure |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is HNO International, Inc.'s Profitability and ROIC?
HNO International, Inc.'s return on invested capital of -257.8% is below the typical cost of capital. Gross margin of 100.0% with operating margin at 6569.9% reflects the company's strong market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -257.8% | Red flag | Below cost of capital |
| Return on Equity (ROE) | 406.2% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 100.0% | Excellent | Strong pricing power |
| Operating Margin | 6569.9% | Excellent | Efficient operations |
How Strong is HNO International, Inc.'s Cash Flow Quality?
HNO International, Inc. generated $-1.2M in free cash flow over the trailing twelve months, representing a -1812.7% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | -1812.7% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-1.2M | Red flag | Cash burn |
| OCF/Net Income | 0.1x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is HNO International, Inc.'s Financial Health?
HNO International, Inc.'s debt-to-equity ratio of 0.0x indicates conservative leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Is HNO International, Inc. Stock Overvalued or Undervalued?
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| EV/Sales | -0.6x | Excellent | Attractive revenue multiple |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -257.8% | Top 5% | -37.7x below |
| Free Cash Flow Margin | -1812.7% | Bottom 10% | -2171.9x below |
| Gross Margin | 100.0% | Top 5% | 3.9x above |
| Operating Margin | 6569.9% | Top 5% | 769.1x above |
| Return on Equity (ROE) | 406.2% | Top 5% | 48.9x above |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: -257.8% (Red flag - Top 5% of sector (median: 6.8%))
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: -18.1x (Red flag)
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 100.0% (Excellent - Top 5% of sector (median: 25.8%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 0.0% (Excellent)
Frequently Asked Questions
Q: What is HNO International, Inc.'s Return on Invested Capital (ROIC)?
HNO International, Inc. (HNOI) has a trailing twelve-month Return on Invested Capital (ROIC) of -257.8%. This compares below the sector median of 6.8%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is HNO International, Inc.'s Free Cash Flow Margin?
HNO International, Inc. (HNOI) has a free cash flow margin of -1812.7%, generating $-1.2 million in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is HNO International, Inc. stock overvalued or undervalued?
HNO International, Inc. (HNOI) The EV/Sales multiple is -0.6x.
Q: What is HNO International, Inc.'s revenue and earnings growth?
HNO International, Inc. (HNOI) grew revenue by 1445.9% year-over-year. Earnings per share increased by 100.0% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does HNO International, Inc. compare to competitors in Materials?
Compared to other companies in Materials, HNO International, Inc. (HNOI) shows: ROIC of -257.8% is below the sector median of 6.8% (Top -1760%). FCF margin of -1812.7% trails the sector median of 0.8%. Gross margin at 100.0% is 74.2 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Materials companies with available SEC filings.
Q: What warning signs should I watch for with HNO International, Inc.?
Investors in HNO International, Inc. (HNOI) should monitor these potential warning signs: 1) FCF margin is thin at -1812.7%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-09-22. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.