EPS of $0.04 increased by 805.3% from previous year
Gross margin of 27.9%
Net income of 700.91K
"" -
Maison Solutions Inc Class A Common Stock (MSS) QQ1 2024 Earnings Review — Revenue Momentum and Margin Expansion Amid Elevated Leverage in the Consumer Defensive Grocery Sector
Executive Summary
Maison Solutions Inc (MSS) delivered a notably stronger top-line performance in QQ1 2024 (calendar year basis), with revenue of $29.65 million, up 115.6% year over year and 75.2% quarter over quarter. The company posted a gross profit of $8.27 million and a gross margin of 27.88%, supported by an EBITDA of $1.70 million and positive operating income of $1.63 million, translating to an operating margin of 5.51%. Net income was $0.70 million, with earnings per share (EPS) of $0.0402. Free cash flow for the period amounted to $3.48 million, underscoring deleveraging-capable cash generation even as working capital and liquidity metrics remain constrained.\n\nFrom a balance-sheet perspective, MSS carries a substantial debt load: total debt of $57.06 million and net debt of $56.47 million, against total assets of $82.08 million and total stockholders’ equity of $11.20 million. The current ratio stands at 0.45 and the quick ratio at 0.19, indicating tighter near-term liquidity despite positive operating cash flow of $3.59 million. Cash at period-end was $0.59 million. The company used financing activities of about $2.89 million to repay debt, contributing to a modest net cash increase of roughly $0.58 million for the period. These dynamics point to a valuation where investors are rewarded for growth and profitability on the one hand, and exposed to leverage and liquidity risk on the other.\n\nOverall investment thrust for MSS rests on sustaining revenue momentum and margin discipline while addressing leverage and liquidity headwinds. The stock’s valuation metrics—indicative of a smaller, growth-oriented grocery retailer—show modest price-to-sales (~0.63) and a price-to-earnings (~6.66) framework, paired with an elevated enterprise value multiple (44.09x) that reflects the company’s small scale and growth optionality. Management commentary (not provided in the data) would be key to validating forward guidance and strategic levers such as store expansion, e-commerce penetration, and cost optimization.”,
Key Performance Indicators
Revenue
29.65M
QoQ: 75.17% | YoY:115.60%
Gross Profit
8.27M
27.88% margin
QoQ: 293.08% | YoY:166.11%
Operating Income
1.63M
QoQ: 167.17% | YoY:854.28%
Net Income
700.91K
QoQ: 125.23% | YoY:767.92%
EPS
0.04
QoQ: 128.71% | YoY:805.26%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $29,649,380; YoY growth 115.60%; QoQ growth 75.17%\n- Gross Profit: $8,265,639; Gross Margin 27.88%\n- Operating Income: $1,634,875; Operating Margin 5.51%\n- EBITDA: $1,704,336; EBITDA Margin 5.75%\n- Net Income: $700,908; Net Margin 2.36%\n- EPS: $0.0402; Diluted EPS: $0.0402; Weighted Avg Shares: 17,450,476\n- Cash Flow: Operating Cash Flow $3,585,390; Free Cash Flow $3,482,759; CFO conversion to FCF robust given small cap base\n- Balance Sheet: Total Assets $82,084,750; Total Liabilities $70,747,804; Total Stockholders’ Equity $11,198,906; Cash $588,896; Debt $57,056,898; Net Debt $56,468,002\n- Liquidity: Current Ratio 0.445; Quick Ratio 0.186; Cash Ratio 0.0207\n- Leverage: Debt to Equity 5.09x; Debt to Capitalization 0.836; Interest Coverage 8.91x\n- Efficiency: Receivables Turnover 22.43x; Inventory Turnover 2.91x; Asset Turnover 0.361x\n- Growth/Valuation Metrics: P/B 1.67x; P/S 0.63x; P/CF 5.36x; P/E 6.66x; Enterprise Value/EBITDA 44.09x
Financial Highlights
- Revenue: $29,649,380; YoY growth 115.60%; QoQ growth 75.17%\n- Gross Profit: $8,265,639; Gross Margin 27.88%\n- Operating Income: $1,634,875; Operating Margin 5.51%\n- EBITDA: $1,704,336; EBITDA Margin 5.75%\n- Net Income: $700,908; Net Margin 2.36%\n- EPS: $0.0402; Diluted EPS: $0.0402; Weighted Avg Shares: 17,450,476\n- Cash Flow: Operating Cash Flow $3,585,390; Free Cash Flow $3,482,759; CFO conversion to FCF robust given small cap base\n- Balance Sheet: Total Assets $82,084,750; Total Liabilities $70,747,804; Total Stockholders’ Equity $11,198,906; Cash $588,896; Debt $57,056,898; Net Debt $56,468,002\n- Liquidity: Current Ratio 0.445; Quick Ratio 0.186; Cash Ratio 0.0207\n- Leverage: Debt to Equity 5.09x; Debt to Capitalization 0.836; Interest Coverage 8.91x\n- Efficiency: Receivables Turnover 22.43x; Inventory Turnover 2.91x; Asset Turnover 0.361x\n- Growth/Valuation Metrics: P/B 1.67x; P/S 0.63x; P/CF 5.36x; P/E 6.66x; Enterprise Value/EBITDA 44.09x
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
29.65M
115.60%
75.17%
Gross Profit
8.27M
166.11%
293.08%
Operating Income
1.63M
854.28%
167.17%
Net Income
700.91K
767.92%
125.23%
EPS
0.04
805.26%
128.71%
Key Financial Ratios
currentRatio
0.45
grossProfitMargin
27.9%
operatingProfitMargin
5.51%
netProfitMargin
2.36%
returnOnAssets
0.85%
returnOnEquity
6.26%
debtEquityRatio
5.09
operatingCashFlowPerShare
$0.21
freeCashFlowPerShare
$0.2
priceToBookRatio
1.67
priceEarningsRatio
6.66
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No QQ1 2024 earnings call transcript data provided in the input. Consequently, there are no management quotes or theme summaries to extract for this period. Analysis therefore relies on the disclosed financials and ratio metrics.
—
—
Forward Guidance
- No formal forward guidance was furnished in the provided data. Investors should monitor: (1) sustainability of revenue growth given the low base and potential store/network expansion, (2) gross margin trajectory amid input-cost volatility and competitive pricing, (3) operating expense discipline as scale increases, (4) working capital efficiency and near-term liquidity improvements, and (5) debt maturities and deleveraging pace given the substantial leverage.\n\n scenarios:\n- Mild growth scenario: Maintain mid- to high-teens revenue growth with gross margin around 28% and stable Opex, leading to earnings expansion and gradual debt repayment through free cash flow.\n- Adversity scenario: If input costs rise or competitive intensity pressure gross margins, the company could face tightened liquidity given current ratio around 0.45; deleveraging would be required to sustain financial flexibility.\n\nKey factors to monitor include same-store sales trends in California, online channel performance, store openings or exits, supplier terms, and any capital deployment plans (capex, store rollouts, acquisitions).
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
MSS Focus
27.88%
5.51%
6.26%
6.66%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the strong revenue trajectory and positive near-term profitability, MSS presents an attractive upside potential if it can sustain revenue growth while executing debt reduction and liquidity improvement. However, the pronounced leverage and tight liquidity metrics warrant a cautious approach. The stock may appeal to investors willing to tolerate higher balance-sheet risk in exchange for growth optionality and improving cash flow. A gradual deleveraging path, disciplined capital allocation (favoring debt repayment and working-capital optimization), and clear guidance on store expansion and online penetration will be critical to reinforcing investor confidence.
Key Investment Factors
Growth Potential
Strong revenue momentum (+115.6% YoY in QQ1 2024) and solid gross margins (~27.9%) suggest meaningful growth potential if MSS can scale its store base and online channel, improving operating leverage over time.
Profitability Risk
High leverage (Debt/Equity ~5.1x, Total Debt $57.1M) and tight liquidity (Current Ratio 0.445, Quick Ratio 0.186) heighten financial risk. Dependency on continued cash generation to fund debt repayments and capex growth.
Financial Position
Positive free cash flow generation ($3.48M) and positive EBITDA support deleveraging potential, but balance-sheet fragility remains due to low cash reserves and elevated debt burden.
SWOT Analysis
Strengths
Robust top-line growth with YoY revenue up 115.6% and QoQ up 75.2%
Gross margin of 27.88% indicates healthy gross profitability for a grocery retailer
Positive operating cash flow and free cash flow ($3.59M CFO; $3.48M FCF) in QQ1 2024
Positive EBITDA and operating income (EBITDA $1.70M; Operating Income $1.63M)
Weaknesses
Material leverage: Total debt $57.06M and net debt $56.47M; Debt/Equity ~5.09x
Very tight liquidity: Current ratio 0.445; Quick ratio 0.186; Cash at period end only $0.59M
Negative working capital pressures and reliance on financing activity for debt management
Smaller scale and limited visibility vs. large multi-store peers in the grocery space
Opportunities
Acceleration of e-commerce and online groceries to broaden addressable market
Potential cost optimization and supply chain efficiencies to bolster margins
Strategic store additions in high-growth California corridors and expansion to adjacent formats
Private label and loyalty programs to improve basket size and margins
Threats
Competitive intensity in the grocery sector with price competition and discount formats
Inflationary input costs and supply chain disruption risk
Debt maturities and refinancing risk in a capital-constrained environment
Regulatory changes and consumer spending volatility impacting discretionary categories within grocery store mix
Maison Solutions Inc Class A Common Stock (MSS) QQ1 2026 Results: Revenue Momentum in California Grocery with Margin Pressure and Bottom-Line Challeng...
Maison Solutions Inc Class A Common Stock (MSS) QQ2 2024 Earnings Analysis: Revenue Acceleration in California Grocery Retail with Margin Pressure and...