📊 MACT Key Takeaways
Is MachTen, Inc. (MACT) a Good Investment?
MachTen demonstrates strong profitability metrics (35.4% operating margin, 25.8% net margin) and exceptional returns on equity (36.7%), but critical operational concerns undermine fundamental quality. The company faces severe liquidity constraints (0.30x current ratio), negative free cash flow (-$2.0M), and CapEx spending that significantly exceeds operating cash generation, indicating unsustainable capital allocation despite near-term profitability.
MachTen shows unusually strong reported profitability for its size, with 35.4% operating margin, 25.8% net margin, and solid returns on equity and assets. However, those earnings are offset by weak balance-sheet liquidity, negative free cash flow driven by heavy capital spending, and limited cash on hand, which raises questions about the durability and quality of reported profits. With stale 2023 data and missing trend detail, the fundamentals support a cautious rather than aggressive view.
Why Buy MachTen, Inc. Stock? MACT Key Strengths
- Exceptional net margin of 25.8% and operating margin of 35.4% demonstrate strong pricing power and cost control
- Outstanding ROE of 36.7% and ROA of 10.3% indicate efficient asset utilization and shareholder value generation
- Strong interest coverage ratio of 48.2x reflects minimal debt burden and financial flexibility on liabilities
- Strong reported profitability, including 35.4% operating margin and 25.8% net margin
- Positive operating cash flow of $4.54M and very strong interest coverage of 48.2x
- High capital efficiency metrics, with ROE of 36.7% and ROA of 10.3%
MACT Stock Risks: MachTen, Inc. Investment Risks
- Critical liquidity crisis with current ratio of 0.30x and quick ratio of 0.30x - company cannot cover short-term obligations with current assets
- Negative free cash flow of -$2.0M despite $4.5M operating cash flow reveals CapEx of $6.5M is unsustainable and strains financial position
- High financial leverage with total liabilities of $21.6M against equity of $8.4M, and minimal cash reserves of $1.6M create refinancing risk
- Very weak liquidity, with current and quick ratios both at 0.30x
- Negative free cash flow of -$1.98M due to capital expenditure exceeding operating cash flow
- Financial data is stale and incomplete, with no YoY growth context and missing gross profit disclosure
Key Metrics to Watch
- Free cash flow trend and CapEx spending rationalization - must turn positive within 2-3 quarters
- Current ratio and working capital position - any deterioration signals insolvency risk
- Operating cash flow sustainability - must increase to support capital investments without liquidity deterioration
- Current ratio and cash balance
- Operating cash flow versus capital expenditure
MachTen, Inc. (MACT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
MACT Profit Margin, ROE & Profitability Analysis
MACT vs Telecom Sector: How MachTen, Inc. Compares
How MachTen, Inc. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is MachTen, Inc. Stock Overvalued? MACT Valuation Analysis 2026
Based on fundamental analysis, MachTen, Inc. appears fundamentally strong relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
MachTen, Inc. Balance Sheet: MACT Debt, Cash & Liquidity
MACT Revenue Growth, EPS Growth & YoY Performance
MACT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2023 | $4.1M | $1.1M | $0.34 |
| Q2 2023 | $4.0M | $943.0K | $10,530,000.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
MachTen, Inc. Dividends, Buybacks & Capital Allocation
MACT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for MachTen, Inc. (CIK: 0001957783)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MACT
What is the AI rating for MACT?
MachTen, Inc. (MACT) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MACT's key strengths?
Claude: Exceptional net margin of 25.8% and operating margin of 35.4% demonstrate strong pricing power and cost control. Outstanding ROE of 36.7% and ROA of 10.3% indicate efficient asset utilization and shareholder value generation. ChatGPT: Strong reported profitability, including 35.4% operating margin and 25.8% net margin. Positive operating cash flow of $4.54M and very strong interest coverage of 48.2x.
What are the risks of investing in MACT?
Claude: Critical liquidity crisis with current ratio of 0.30x and quick ratio of 0.30x - company cannot cover short-term obligations with current assets. Negative free cash flow of -$2.0M despite $4.5M operating cash flow reveals CapEx of $6.5M is unsustainable and strains financial position. ChatGPT: Very weak liquidity, with current and quick ratios both at 0.30x. Negative free cash flow of -$1.98M due to capital expenditure exceeding operating cash flow.
What is MACT's revenue and growth?
MachTen, Inc. reported revenue of $12.0M.
Does MACT pay dividends?
MachTen, Inc. pays dividends, with $15.0M distributed to shareholders in the trailing twelve months.
Where can I find MACT SEC filings?
Official SEC filings for MachTen, Inc. (CIK: 0001957783) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MACT's EPS?
MachTen, Inc. has a diluted EPS of $0.98.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MACT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, MachTen, Inc. has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MACT stock overvalued or undervalued?
Valuation metrics for MACT: ROE of 36.7% (sector avg: 15%), net margin of 25.8% (sector avg: 14%). Higher ROE suggests strong returns relative to peers.
Should I buy MACT stock in 2026?
Our dual AI analysis gives MachTen, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is MACT's free cash flow?
MachTen, Inc.'s operating cash flow is $4.5M, with capital expenditures of $6.5M. FCF margin is -16.5%.
How does MACT compare to other Telecom stocks?
Vs Telecom sector averages: Net margin 25.8% (avg: 14%), ROE 36.7% (avg: 15%), current ratio 0.30 (avg: 1).
Why is MACT's return on equity (ROE) so high?
MachTen, Inc. has a return on equity of 36.7%, significantly above the Telecom sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 25.8% net margin.