PSIG — financial distress indicators
Financial-health summary
PSIG's reported numbers place it in the 'Very weak' financial-health band (distress score 89/100). The main indicators are liabilities exceed assets (negative equity), market-implied default probability >20% and revenue collapse. Independently, the Ohlson accounting model puts its 1-year failure probability at 99% and the market-implied (Merton) default probability is 37.6%. In its favour: cash on hand covers all debt (net-cash balance sheet).
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.
Total liabilities are 1.11× total assets.
Balance-sheet insolvency test: debts exceeding the fair value of assets is the statutory definition of 'insolvent' in 11 U.S.C. §101(32).
Merton distance-to-default 0.32 σ → PD 38%.
Structural (Merton/KMV) model: equity is a call option on assets; low distance-to-default means assets are close to the default point.
Revenue changed -39% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
Operating cash flow negative in 2 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
O-score 5.00 → model probability 99%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Current ratio is 0.79.
Short-term obligations exceed short-term resources — the company relies on rolling over credit.
Cash covers ~19 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.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- High insider/promoter ownership (57%) aligns management with survival.
📰 Recent news scan
- PS International Group Ltd. (NASDAQ:PSIG) Shares Shorted: Short Interest Up 403.9% in September - MarketBeatGoogle News · 2026-09-25
- PS International Has 180 Days to Meet Nasdaq’s $35M Threshold - Stock TitanGoogle News · 2026-08-14
- PS International Group Ltd. Receives Nasdaq Non-Compliance Notice for Minimum Market Value of Listed Securities Requirement - Yahoo FinanceGoogle News · 2026-08-14
- PSIG Plunges As PS International Group Ltd. Faces Heavy Selling - StocksToTradeGoogle News · 2026-06-28
- Price to earnings forward of PS International Group Ltd. – NASDAQ:PSIG - TradingViewGoogle News · 2026-06-26
⚖️ 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 PSIG's financial-health indicators show?
As of 2026-10-08, PSIG's public financial data places it in the 'Very weak' band with a distress score of 89/100, driven by liabilities exceed assets (negative equity), market-implied default probability >20% and revenue collapse. 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 PSIG's financial distress score?
89/100 ('Very weak'). Ohlson O-score 5.0 (model 1-year failure probability 99%). Merton distance-to-default 0.32 σ (model default probability 37.6%).
What works in PSIG's favour?
Cash on hand covers all debt (net-cash balance sheet). 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.
Other Unclassified companies with distress indicators
- CNEY (CNEY)Very weak 100/100
- EPOW (EPOW)Very weak 100/100
- GIBO (GIBO)Very weak 100/100
- GNS (GNS)Very weak 100/100
- HKPD (HKPD)Very weak 100/100
- HUBC (HUBC)Very weak 100/100
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.