Cmb.Tech NV — financial distress indicators
Financial-health summary
Cmb.Tech NV's reported numbers place it in the 'Watch' financial-health band (distress score 35/100). The main indicators are thin interest coverage, current liabilities exceed current assets and near-term debt exceeds cash. Independently, the Ohlson accounting model puts its 1-year failure probability at 47% and the market-implied (Merton) default probability is 0.0%. In its favour: operating cash flow is positive over the latest 12 months.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Interest coverage is only 1.21× (lenders typically require ≥ 2–3×).
Low coverage leaves little buffer against a profit dip before a debt-service or covenant breach.
Current ratio is 0.95.
Short-term obligations exceed short-term resources — the company relies on rolling over credit.
Short-term debt is 2.9× cash on hand.
Maturity wall: debt due within a year must be refinanced, which is the most common proximate cause of filings.
Share count up +44% in a year.
Large issuance usually funds operating losses rather than growth.
Operating margin fell from 48% to 22% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
- Revenue still growing (+77% YoY).
- High insider/promoter ownership (57%) aligns management with survival.
📰 Recent news scan
- CMB.TECH SPECIAL GENERAL MEETING RESULTSYahoo Finance · 2026-10-08
- PRESS RELEASE: CMB.TECH announces special general meeting on 8 October 2026Yahoo Finance · 2026-09-08
- Cmb.Tech (ENXTBR:CMBT) Stock Seems Reasonable On Its 259% Five Year RunYahoo Finance · 2026-09-02
- Cmb.Tech (ENXTBR:CMBT) Faces An 9% Fair Value Gap As Payout Plans LandYahoo Finance · 2026-09-02
- Cmb.Tech (CMBT) Is Cashing Out At The Top Of A BoomYahoo Finance · 2026-08-28
- Cmb.Tech (CMBT) Q2 2026 Earnings Call TranscriptYahoo Finance · 2026-08-28
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Cmb.Tech NV's financial-health indicators show?
As of 2026-10-08, Cmb.Tech NV's public financial data places it in the 'Watch' band with a distress score of 35/100, driven by thin interest coverage, current liabilities exceed current assets and near-term debt exceeds cash. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Cmb.Tech NV's financial distress score?
35/100 ('Watch'). Ohlson O-score -0.13 (model 1-year failure probability 47%). Merton distance-to-default 6.76 σ (model default probability 0.0%).
What works in Cmb.Tech NV's favour?
Operating cash flow is positive over the latest 12 months. Revenue still growing (+77% YoY). High insider/promoter ownership (57%) aligns management with survival.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
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Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.