Nomadar Corp. — financial distress indicators
Financial-health summary
Nomadar Corp.'s reported numbers place it in the 'Very weak' financial-health band (distress score 81/100). The main indicators are operating profit does not cover interest, severe working-capital shortfall and operations consume cash. Independently, the Ohlson accounting model puts its 1-year failure probability at 90% and the market-implied (Merton) default probability is 14.6%. In its favour: revenue still growing (+11388% yoy).
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 (EBIT / interest) is -13.00×.
When EBIT < interest, debt service is funded from cash reserves or new borrowing — the classic precursor to payment default and covenant breach.
Current ratio is 0.36 (current assets cover 36% of near-term obligations).
Cash-flow insolvency test: inability to pay debts as they fall due is the trigger for both U.S. involuntary petitions and Indian IBC default.
Operating cash flow negative in 2 of the last 2 years.
A business that cannot fund itself from operations depends on external capital to survive.
Price is -86% from its 52-week high.
Equity markets price distress early; collapses of this size usually reflect fear of wipe-out in a restructuring.
O-score 2.20 → model probability 90%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Cash covers ~20 months of free-cash-flow burn.
Funding needs within two years make the company dependent on capital-market access.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Merton distance-to-default 1.05 σ → PD 14.6%.
Investment-grade issuers typically have 1-year PD well below 1%.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Revenue still growing (+11388% YoY).
- High insider/promoter ownership (63%) aligns management with survival.
📰 Recent news scan
- Nomadar to Participate in the 20th Annual LD Micro Main EventYahoo Finance · 2026-10-07
- Nomadar Enters into Definitive Agreement to Acquire Majority Interest in Fox Soccer AcademyYahoo Finance · 2026-09-14
- Nomadar could become majority shareholder of Cadiz CF (La Liga) as club begins reorganization processYahoo Finance · 2026-09-01
- Nomadar Brings 58 Selected U.S. Youth Soccer Players to Spain for Elite Training with Cádiz CFYahoo Finance · 2026-08-04
- Nomadar Completes Acquisition of Land for the Development of JP Financial ArenaYahoo Finance · 2026-07-15
- Nomadar Reinforces International Sports Tourism Platform Through 2026 Cádiz Global CupYahoo Finance · 2026-06-11
⚖️ 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 Nomadar Corp.'s financial-health indicators show?
As of 2026-10-08, Nomadar Corp.'s public financial data places it in the 'Very weak' band with a distress score of 81/100, driven by operating profit does not cover interest, severe working-capital shortfall and operations consume 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 Nomadar Corp.'s financial distress score?
81/100 ('Very weak'). Ohlson O-score 2.2 (model 1-year failure probability 90%). Merton distance-to-default 1.05 σ (model default probability 14.6%).
What works in Nomadar Corp.'s favour?
Revenue still growing (+11388% YoY). High insider/promoter ownership (63%) 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.
Other Consumer Discretionary companies with distress indicators
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- Polestar Automotive Holding UK PLC (PSNY)Very weak 100/100
- Polestar Automotive Holding UK PLC (PSNYW)Very weak 100/100
- Reborn Coffee, Inc. (REBN)Very weak 100/100
- Sports Entertainment Gaming Global Corporation (SEGG)Very weak 100/100
All Consumer Discretionary companies with distress indicators →
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.