A Business at a Glance
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ITEM 1. BUSINESS OVERVIEW AND HISTORY Reliability Incorporated (“Reliability” or the “Company”), headquartered in Clarksburg, Maryland, through its wholly owned subsidiary, The Maslow Media Group, Inc. (“Maslow” or “MMG”), provides workforce solutions to its clients consisting primarily of Employer of Record (“EOR”) services, Recruiting and Staffing, and Video and Multimedia Production. The Company focuses on domestic clients but provides services to these clients throughout the world. The Company’s clients are in diverse industries including media, financial services including banking, medical devices, pharmaceuticals, telecommunications, energy, healthcare, and education. Reliability was incorporated under the laws of the State of Texas in 1953. From 1971 to 2007, the Company was principally engaged in the design, manufacture, market, and support of high-performance equipment used to test and condition integrated circuits.
| Metric | TTM | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Revenue | 21M | 24M | 21M | 26M | 26M | 29M |
| Net Income | -1.0M | -594K | -740K | -739K | 7.9M | -789K |
| EPS | $0.00 | $0.00 | $0.00 | $0.00 | $0.03 | $0.00 |
| Free Cash Flow | 506K | -2.7M | 3.0M | -1.4M | 2.5M | -2.1M |
| ROIC | -13.0% | -8.1% | -9.3% | -8.5% | 84.7% | -52.0% |
| Gross Margin | 13.8% | 13.3% | 14.2% | 13.6% | 12.4% | 11.9% |
| Debt/Equity | 0.02 | 0.01 | 0.23 | 0.56 | 0.52 | 0.59 |
| Dividends/Share | $0.00 | $0.00 | - | - | $0.00 | $0.00 |
| Operating Income | -1.0M | -707K | -749K | -906K | 8.9M | -988K |
| Operating Margin | -4.8% | -2.9% | -3.5% | -3.5% | 34.0% | -3.4% |
| ROE | -15.2% | -7.8% | -9.3% | -8.5% | 83.9% | -52.0% |
| Shares Outstanding | 300M | 300M | 300M | 300M | 263M | 300M |
| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | |||
|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||
| Revenue | 38M | 38M | 29M | 26M | 26M | 21M | 24M | 21M |
| Gross Margin | 10.3% | 10.6% | 11.9% | 12.4% | 13.6% | 14.2% | 13.3% | 13.8% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 2.8M | 3.0M | 4.5M | 3.6M | 4.4M | 3.8M | 3.9M | 4.0M |
| EBIT | 1.1M | 1.1M | -988K | 8.9M | -906K | -749K | -707K | -1.0M |
| Op. Margin | 2.8% | 2.8% | -3.4% | 34.0% | -3.5% | -3.5% | -2.9% | -4.8% |
| Net Income | 386K | 195K | -789K | 7.9M | -739K | -740K | -594K | -1.0M |
| Net Margin | 1.0% | 0.5% | -2.7% | 30.1% | -2.9% | -3.4% | -2.5% | -4.7% |
| Non-Recurring | 27K | 0 | 0 | 688K | 518K | 0 | 0 | 0 |
| Returns on Capital | ||||||||
| ROIC | 48.5% | 13.5% | -52.0% | 84.7% | -8.5% | -9.3% | -8.1% | -13.0% |
| ROE | 56.8% | 7.5% | -52.0% | 83.9% | -8.5% | -9.3% | -7.8% | -15.2% |
| ROA | 8.1% | 1.4% | -6.4% | 55.2% | -5.5% | -7.6% | -5.6% | -10.9% |
| Cash Flow | ||||||||
| Op. Cash Flow | 16K | 1K | -2.1M | 2.5M | -1.4M | 3.0M | -2.6M | 527K |
| Free Cash Flow | 13K | -40K | -2.1M | 2.5M | -1.4M | 3.0M | -2.7M | 506K |
| Owner Earnings | -379K | -24K | -2.1M | 2.4M | -1.5M | 3.0M | -2.6M | 496K |
| CapEx | 3K | 41K | 50K | 7K | 9K | 9K | 68K | 21K |
| Maint. CapEx | 25K | 25K | 79K | 72K | 32K | 18K | 23K | 31K |
| Growth CapEx | 0 | 16K | 0 | 0 | 0 | 0 | 45K | 0 |
| D&A | 25K | 25K | 79K | 72K | 32K | 18K | 23K | 31K |
| CapEx/OCF | N/A | N/A | N/A | N/A | N/A | 0.3% | N/A | 4.0% |
| Capital Allocation | ||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | N/A | N/A | 0.0% | 0.0% |
| Stock-Based Comp | 370K | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt Repayment | 865K | 794K | 853K | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | ||||||||
| Net Debt | 1.6M | 3.0M | 750K | N/A | N/A | N/A | -971K | -357K |
| Cash & Equiv. | 29K | 275K | 70K | 24K | 227K | 822K | 522K | 458K |
| Long-Term Debt | 794K | 1.7M | N/A | N/A | N/A | N/A | 21K | 21K |
| Debt/Equity | 1.08 | 1.36 | 0.59 | 0.52 | 0.56 | 0.23 | 0.01 | 0.02 |
| Interest Coverage | 3.2 | 2.5 | -3.5 | 228.6 | -5.3 | -8.1 | -6.5 | -6.5 |
| Equity | 1.5M | 2.6M | 1.5M | 9.4M | 8.7M | 7.9M | 7.3M | 6.6M |
| Total Assets | 9.5M | 14M | 12M | 14M | 13M | 9.8M | 12M | 9.2M |
| Total Liabilities | 8.0M | 12M | 11M | 4.9M | 4.8M | 1.9M | 4.2M | 2.6M |
| Intangibles | N/A | 755K | 721K | 518K | 518K | 3K | 2K | 2K |
| Retained Earnings | 1.5M | 1.8M | 767K | 8.7M | 7.9M | 7.2M | 6.6M | 5.8M |
| Working Capital | 1.8M | 784K | 6.0M | 9.4M | 8.6M | 7.9M | 7.3M | 6.6M |
| Current Assets | 9.4M | 11M | 11M | 14M | 13M | 9.8M | 11M | 9.1M |
| Current Liabilities | 7.7M | 10M | 5.5M | 4.9M | 4.8M | 1.9M | 4.2M | 2.6M |
| Per Share Data | ||||||||
| EPS | 0.00 | 0.00 | 0.00 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 |
| Owner EPS | -0.00 | -0.00 | -0.01 | 0.01 | -0.00 | 0.01 | -0.01 | 0.00 |
| Book Value | 0.01 | 0.01 | 0.01 | 0.04 | 0.03 | 0.03 | 0.02 | 0.02 |
| Cash Flow/Share | 0.00 | 0.00 | -0.01 | 0.01 | -0.00 | 0.01 | -0.01 | -0.00 |
| Dividends/Share | 0.00 | 0.00 | 0.00 | 0.00 | N/A | N/A | 0.00 | 0.00 |
| Shares Out. | 282.0M | 300.0M | 300.0M | 263.1M | 300.0M | 300.0M | 300.0M | 300.0M |
| Valuation | ||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| P/FCF | N/A | N/A | N/A | N/A | N/A | 5.5 | N/A | 41.5 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Book | N/A | N/A | N/A | N/A | 1.5 | 2.1 | N/A | 3.2 |
| Price/Sales | N/A | N/A | N/A | N/A | 0.6 | 0.7 | N/A | 1.0 |
| FCF Yield | N/A | N/A | N/A | N/A | -11.4% | 18.2% | N/A | 2.4% |
| Market Cap | 0 | 0 | 0 | 0 | 13M | 16M | 0 | 21M |
| Avg. Price | 0.00 | 0.00 | 0.00 | 0.00 | 0.05 | 0.05 | 0.00 | 0.07 |
| Year-End Price | 0.00 | 0.00 | 0.00 | 0.00 | 0.04 | 0.05 | 0.00 | 0.07 |
RELIABILITY INC passes 1 of 9 quality checks, indicating weak fundamentals.
On a free-cash-flow basis, the stock trades at 5.8x vs a median of 5.5x. The company's 5-year average ROIC is 1.3% with a gross margin of 13.1%. At current prices, the estimated annualized return to fair value is +65.1%.
RELIABILITY INC (RLBY) has a 5-year average return on invested capital (ROIC) of 1.3%. This is below average and may indicate limited pricing power.
RELIABILITY INC (RLBY) has a market capitalization of $21M. It is classified as a small-cap stock.
RELIABILITY INC (RLBY) does not currently pay a regular dividend.
RELIABILITY INC (RLBY) operates in the Services-Help Supply Services industry, within the Industrials sector.
RELIABILITY INC (RLBY) reported annual revenue of $24 million in its most recent fiscal year, based on SEC EDGAR filings.
RELIABILITY INC (RLBY) has a net profit margin of -2.5%. The company is currently unprofitable.
RELIABILITY INC (RLBY) generated $-3 million in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
RELIABILITY INC (RLBY) has a debt-to-equity ratio of 0.01. This indicates a conservatively financed balance sheet.
RELIABILITY INC (RLBY) has a return on equity (ROE) of -7.8%. A negative ROE may indicate losses or negative equity.
RELIABILITY INC (RLBY) has a 5-year average gross margin of 13.1%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 7 years of financial data for RELIABILITY INC (RLBY), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
RELIABILITY INC (RLBY) has a book value per share of $0.02, based on its most recent annual SEC filing.