Margo Caribe (MRGO) Stock Analysis & Winston Score

Margo Caribe Inc. is a small company based in Puerto Rico that sells home improvement and building materials products. It supplies items like plumbing fixtures, hardware, and related supplies primarily to contractors, retailers, and consumers in the Caribbean market. The company operates in a niche regional segment of the broader home improvement industry.

Margo Caribe earns revenue by selling physical products through distribution and retail channels, keeping a gross margin around 30%, which is solid for a distributor. Its operations are concentrated in Puerto Rico and nearby Caribbean territories, giving it a geographic moat — local relationships and regional logistics expertise that larger mainland competitors find hard to replicate quickly. The main risk the company faces is its heavy dependence on a small, island-based economy, meaning hurricanes, economic downturns, or construction slowdowns in Puerto Rico could significantly hurt sales volume and profitability.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-3.0% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+216.7% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

9.6%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$8M cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Margo Caribe's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

36.1%

Modest — 36.1% gross margin

Operating Margin

13.1%

Healthy — 13.1% operating margin

ROCE

4.8%

Weak — 4.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+0.6%

Nearly flat sales (0.6% YoY)

EPS YoY

+76.9%

Earnings growing fast (76.9% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

0%

Weak — only 0% of profit becomes cash

FCF Margin

0.0%

Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.16

Conservative — low debt load (0.16)

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

4.7x

no trend

Attractive valuation — P/E 4.7

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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