Breaking Down Chicago Rivet & Machine Co. (CVR) Financial Health: Key Insights for Investors

You're looking at Chicago Rivet & Machine Co. (CVR), a small-cap player in the fastener and assembly equipment space, and honestly, the recent numbers tell a story of a real operational pivot. For the first nine months of 2025, the company managed to swing back to a net income of $73,615, a stark contrast to the $2,002,484 net loss it posted in the same period last year, which is defintely a win for management. This turnaround was solidified in the third quarter alone, where net income hit $67,572 on net sales of $7,360,284, translating to earnings per share (EPS) of $0.07; that's a huge jump from the prior year's quarterly loss of $1.45 per share. Plus, their current ratio sits at a very strong 7.23, showing excellent short-term liquidity, but still, the nine-month net sales are slightly down, so we need to dig into what's driving the revenue mix-especially with the stock trading around $9.11 a share and the company's market capitalization hovering near $9M. Let's break down the financial health of this micro-cap manufacturer to map out the near-term investment risks and opportunities.

Revenue Analysis

You need a clear picture of where Chicago Rivet & Machine Co. (CVR) actually makes its money, and the Q3 2025 results give us a mixed but telling story. The direct takeaway is that while the company saw a solid quarterly sales bump, the nine-month trend shows a dip, which is a near-term risk tied directly to the automotive sector's health.

The company's revenue streams are split into two core business segments: the Fastener segment and the Assembly Equipment segment. Honestly, the Fastener segment-which sells rivets, cold-formed fasteners, and parts-is the engine here, providing the majority of the total revenue.

Here's the quick math on the near-term performance:

• Q3 2025 Net Sales: $7,360,284
• Q3 Year-over-Year Growth: 5.6% increase from Q3 2024
• First Nine Months 2025 Net Sales: $21,903,997

That 5.6% quarterly growth is a nice win, especially since it helped drive a return to net profitability. Still, the trailing twelve-month (TTM) revenue, as of September 30, 2025, was $26.01 million, which is actually a -12.32% decrease year-over-year. This is why you must look beyond a single quarter.

The segment data shows exactly where the opportunities and risks lie. The Fastener segment's sales to automotive customers increased by a strong 18.2% for the three months ended September 30, 2025, compared to the same period in 2024. That's a great sign of recent demand. But, the nine-month view tells a different story: sales to those same automotive customers were down 9.0% overall for the year-to-date, due to a slowdown in North American vehicle production. That's the limit this estimate hides: the company is tightly coupled to the volatile auto cycle.

Also, to be fair, the smaller Assembly Equipment segment-which sells the automatic rivet setting machines-saw sales decline by 11.2% in Q3 2025. This was mostly attributed to project delays and the timing of customer purchasing cycles, not a fundamental product issue, but it still drags on overall revenue. On a positive note, foreign sales for the fastener segment did increase to $1,684,336 in Q3 2025, indicating a stronger performance in international markets. You defintely want to keep an eye on that international growth as a diversification play.

Here is a quick summary of the key revenue shifts:

For a deeper dive into who is betting on these trends, you should be Exploring Chicago Rivet & Machine Co. (CVR) Investor Profile: Who's Buying and Why?

Next step: Finance: Map the Q4 2025 automotive production forecasts against the Q3 2025 sales to project a conservative Q4 revenue range by the end of next week.

Profitability Metrics

The core takeaway for Chicago Rivet & Machine Co. (CVR) is a significant profitability turnaround in 2025, moving from substantial losses in 2024 to a small but important net profit. You should view this as a stabilization signal, not a growth engine yet. The company's focus on operational efficiency is clearly paying off, but its margins still trail broader industry benchmarks, which means there is room to grow but also less of a cushion against market shocks.

For the first nine months of 2025, Chicago Rivet & Machine Co. reported a net income of $73,615, a sharp reversal from the net loss of $2.00 million recorded in the same period of 2024. This shift is the most critical near-term financial trend. The third quarter (Q3) of 2025 was particularly strong, showing a net income of $67,572 on net sales of $7,360,284, compared to a net loss of $1.45 million in Q3 2024. This is a defintely positive sign.

Here's the quick math on the Q3 2025 margins:

• Gross Profit Margin: 18.07%
• Operating Profit Margin: 0.88%
• Net Profit Margin: 0.92%

Operational Efficiency and Margin Trends

The improvement in gross profit-which jumped 91.3% in Q3 2025 year-over-year-is the engine behind this profitability recovery. This huge leap points directly to better cost management and a favorable mix of products being sold. Specifically, the company cited meaningful cost savings from consolidating its Albia operations into the Tyrone manufacturing facility. This move streamlined workflows, improved capacity use, and cut overhead. The fact that operating income turned positive at $64,570, up from an operating loss of $823,571 a year ago, shows the cost-cutting hit its target.

Benchmarking Against Industry Averages

To put Chicago Rivet & Machine Co.'s performance in context, you need to compare its margins to the broader industrial landscape. The company's primary segments are Fasteners and Assembly Equipment, with a heavy reliance on the automotive sector.

Your analysis should note that while the margins are positive, they are still relatively thin compared to the averages for similar sectors. The Q3 2025 Gross Profit Margin of 18.07% is in line with the Auto Manufacturers' average of 18.1%, but significantly lower than the Auto Parts industry average of 22.4% or the general Machinery sector average of 35.54%. This suggests Chicago Rivet & Machine Co. operates with a tighter cost-of-goods-sold structure, possibly due to its specialized, lower-volume production model compared to larger distributors like Fastenal, which reported a Gross Margin of 45.3% in Q3 2025.

The overall Net Profit Margin of 0.92% in Q3 2025 is a massive step up from a loss, but it is still below the Auto Parts industry average of 1.6% and far below the general Machinery average of 9.77%. This tells me that while the company has fixed its operational problems, it still needs to drive higher sales volume or implement further price increases to reach peer-level profitability.

Here is a quick comparison of the margins for perspective:

What this estimate hides is the potential for CVR to capture higher-margin, application-specific fastener business, which is a key growth trend in the industrial fasteners market. For more on the long-term vision guiding these operational changes, you can review the Mission Statement, Vision, & Core Values of Chicago Rivet & Machine Co. (CVR).

Next Step: Portfolio Manager: Assess CVR's Q4 2025 sales guidance for the Fastener segment, specifically looking for a projected revenue increase that would push the full-year net margin above the 1.0% mark.

Debt vs. Equity Structure

You want to know how Chicago Rivet & Machine Co. (CVR) funds its operations, and the quick answer is that the company leans heavily on equity, keeping debt remarkably low. As of the latest financial data for the 2025 fiscal year, CVR's Debt-to-Equity (D/E) ratio stood at just 0.05, indicating an extremely conservative approach to leverage. This is a very strong signal of financial stability, but it also raises questions about capital efficiency.

Overview of Debt Levels (Q3 2025)

Chicago Rivet & Machine Co. operates with minimal debt, which is a definetly positive sign for solvency. The company's primary debt is a mix of short-term working capital needs and a small amount of long-term obligations. Here's the quick math on their structure, based on the most recent filings and reported ratios:

• Short-Term Debt: As of September 30, 2025, the company had drawn $500,000 under its revolving line of credit to support working capital.
• Long-Term Debt: Based on the reported Long-Term Debt-to-Equity ratio of 0.04, the long-term debt component is approximately $0.80 million (calculated using the Q2 2025 Total Equity of $19.98 million).
• Total Debt: The total debt is approximately $1.30 million, which is a tiny fraction of the company's total capitalization.

The company has an aggregate borrowing capacity of $2.5 million under its committed revolving credit facility, showing they have plenty of room to maneuver if a near-term investment opportunity arises.

Debt-to-Equity Ratio and Industry Comparison

The reported D/E ratio of 0.05 is a clear outlier in the broader industrial sector, even within the Auto Parts industry, which CVR primarily serves. The ratio measures how much a company is financing its assets with debt versus shareholder equity (retained earnings and invested capital).

To put this in perspective, here's how CVR stacks up against industry benchmarks as of late 2025:

A ratio this low means that for every dollar of equity, CVR uses only five cents of debt. This minimizes interest rate risk and default risk, but it also signals that management is highly cautious, perhaps missing out on returns that could be generated through prudent debt financing (financial leverage).

Financing Strategy and Future Outlook

CVR's financing strategy is fundamentally equity-driven, preferring retained earnings and shareholder capital over external borrowing. This is evident in the low D/E ratio and the fact that the company has not had any major, recent debt issuances or refinancing activity reported in 2025, beyond drawing on its existing credit line for working capital. The company is in compliance with all financial covenants on its credit facility, which include a minimum tangible net worth and minimum profitability for the year ending December 31, 2025.

The balance is clearly tipped toward equity funding. This approach is a double-edged sword: it provides a massive safety cushion, but it can also constrain growth initiatives that require large upfront capital investment. Given the company's recent return to profitability in Q3 2025 with a net income of $67,572, the board will continue to evaluate this balance, as future dividend decisions will consider current profitability and potential cash requirements. For more on the company's long-term direction, you should review their Mission Statement, Vision, & Core Values of Chicago Rivet & Machine Co. (CVR).

Next Step: Review the Q4 2025 earnings release for any changes in the revolving credit balance, as this will be the clearest indicator of near-term cash needs.

Liquidity and Solvency

The most critical takeaway for Chicago Rivet & Machine Co. (CVR)'s financial health is the explicit warning in its recent filings. The company's own management has raised substantial doubt about its ability to continue as a going concern, which is the most serious red flag an investor can encounter regarding near-term liquidity.

This concern is grounded in a continued reduction in liquidity, recurring operating losses, and sustained negative cash flows. While the company is profitable for the first nine months of 2025 with net income of $73,615, this is a thin margin that doesn't mask the underlying cash burn.

Current and Quick Ratios: The Missing Link

A precise assessment of the Current Ratio (Current Assets / Current Liabilities) and Quick Ratio (Quick Assets / Current Liabilities) for the September 30, 2025, quarter is limited by the public data available, but the cash position tells a clear story. As of the end of Q3 2025, the company's liquid assets consisted of cash and cash equivalents totaling just $1,682,919.

For a manufacturing business, that is a tight cushion, defintely not a sign of a strong liquidity position. The company is running lean, and any unexpected operational hiccup or delay in accounts receivable collection could quickly deplete this balance.

Analysis of Working Capital Trends

Working capital, which is Current Assets minus Current Liabilities, is under severe pressure due to the negative cash flow from operations. The company is essentially funding its daily activities by drawing down on its existing cash reserves or through other non-operating means. This trend is a reversal from prior periods where working capital was supported by asset sales, highlighting a structural issue in the core business model that needs fixing.

• Actionable Insight: Monitor the next 10-Q for a significant increase in short-term borrowings or a sharp drop in inventory, which would signal a critical working capital crunch.

Cash Flow Statements Overview

The nine-month cash flow trends through the first half of 2025 illustrate the root of the liquidity problem. The core business is simply not generating cash, a trend that is unsustainable over the long term. Here's the quick math for the first six months of 2025 (in millions):

Cash Flow from Operating Activities (CFO) has been significantly negative, totaling nearly -$4.0 million in the first six months of 2025. This is the most damning figure, showing that core manufacturing operations are burning cash. The positive Cash Flow from Investing Activities (CFI) of $1.71 million suggests the company is likely selling off assets or minimizing capital expenditures (CapEx) to offset the operating deficit, which is a classic sign of a distressed business trying to conserve cash.

The small, mixed Cash Flow from Financing Activities (CFF) indicates minimal reliance on new debt or equity, but the negative CFO means the company is relying on asset sales (CFI) and existing cash reserves to stay afloat, not a healthy long-term strategy. For a deeper dive into the company's full strategic position, you should review our comprehensive analysis in Breaking Down Chicago Rivet & Machine Co. (CVR) Financial Health: Key Insights for Investors.

Valuation Analysis

The short answer on whether Chicago Rivet & Machine Co. (CVR) is overvalued or undervalued is complex: it looks cheap on assets but expensive, or unquantifiable, on earnings, reflecting its current operating losses. For a micro-cap industrial company, its valuation metrics are a mixed bag right now, pointing to a deep value play with significant near-term risk.

You're looking at a stock that has been severely compressed over the last year. The stock price has traded in a wide range, from a 52-week low of $\mathbf{\$8.15}$ to a high of $\mathbf{\$19.00}$. As of November 2025, the stock sits near the bottom of that range, trading around $\mathbf{\$9.10}$. That's a massive drop, and it tells you the market is pricing in substantial headwinds, which is defintely the case given the negative earnings.

Decoding Core Valuation Multiples

When a company is losing money, traditional earnings-based multiples become distorted or irrelevant. That's the situation with Chicago Rivet & Machine Co. (CVR) right now, which reported a trailing twelve months (TTM) Earnings Per Share (EPS) of approximately $\mathbf{-\$3.66}$.

• Price-to-Earnings (P/E) Ratio: The TTM P/E ratio is negative, sitting around $\mathbf{-2.48}$. This isn't a true valuation signal; it simply confirms the company is currently unprofitable.
• Price-to-Book (P/B) Ratio: This is the crucial number for a company like CVR. Its latest P/B ratio is approximately $\mathbf{0.6x}$. This means the market values the company at only $\mathbf{60\%}$ of its net asset value (Book Value). Here's the quick math: you are essentially buying $\mathbf{\$1.00}$ of assets for only $\mathbf{\$0.60}$. This strongly suggests the stock is undervalued based on its tangible assets, a classic deep value indicator.
• Enterprise Value-to-EBITDA (EV/EBITDA): The TTM EV/EBITDA is also negative, around $\mathbf{-2.70}$ as of November 2025. Like the P/E ratio, this is a reflection of negative TTM EBITDA, not a useful valuation multiple right now.

The low P/B ratio is the primary argument for an undervaluation thesis. But what this estimate hides is the market's skepticism that management can turn those assets into consistent profit, which is why the stock trades below book value.

Dividend and Analyst Sentiment

Despite the losses, Chicago Rivet & Machine Co. (CVR) continues to pay a dividend. This is a sign of management's commitment to shareholders, but it's an unsustainable practice without a return to profitability.

Honestly, the negative TTM payout ratio is a flashing red light. The company is paying the dividend out of cash reserves or debt, not earnings, which can't last forever. Still, the dividend acts as a floor for the stock price.

Analyst consensus is not formally published with a 'Buy/Hold/Sell' rating from major firms. The technical analysis picture is mixed: some recent signals, such as the Moving Average Convergence Divergence (MACD) turning positive on November 17, 2025, suggest a potential short-term upward trend with a $\mathbf{77\%}$ odds of a higher move in the following month. However, other models maintain an overall negative evaluation. This lack of a formal rating is typical for a micro-cap stock and puts the burden of analysis squarely on you.

If you want to dig deeper into the shareholder structure that keeps this company afloat, you should be Exploring Chicago Rivet & Machine Co. (CVR) Investor Profile: Who's Buying and Why?

Risk Factors

You're looking at Chicago Rivet & Machine Co. (CVR) and seeing a return to profitability in the first nine months of 2025, which is a great sign. But as a seasoned analyst, I focus on the headwinds that could derail that momentum. The reality is, for a niche manufacturer like CVR, the risks are concentrated and can hit hard. We need to map the external market pressures and the internal operational challenges.

The biggest external risk is their reliance on the domestic automotive industry. CVR is a manufacturer of rivets and fasteners, and their sales revenue is heavily tied to vehicle production cycles. While the fastener segment saw an 18.2% increase in sales to automotive customers in Q3 2025, the nine-month sales to that same group actually decreased by 9.0% due to a slowdown in North American vehicle production. That's a clear signal of volatility. One slow quarter from a major customer, and your numbers change fast.

Here's the quick math on the near-term financial pressure. For the first nine months of 2025, CVR's net sales were $21,903,997, down from the prior year's $22,882,579. That dip, even with a return to a small net income of $73,615, shows how external market conditions like a slowdown in auto production directly erode the top line.

Key External Market Pressures

Beyond the core automotive dependency, a few other macro factors could squeeze CVR's margins. These are the classic, unavoidable industry risks that management has to navigate:

• Raw Material Costs: The price and availability of raw materials like steel, brass, and aluminum are always a risk, especially with persistent inflation and supply chain complexities mentioned in their recent filings.
• Intense Competition: The fastener market is highly competitive. CVR must defintely maintain its technical expertise to justify its pricing against larger, global competitors.
• Customer Concentration: A substantial portion of their sales is concentrated with major customers. Losing even one large contract would significantly impact their revenue stream.

Operational and Strategic Risks to Watch

Internally, there are two segments to watch. The assembly equipment segment is a particular weak spot, with sales declining by 11.2% for the three months ended September 30, 2025, compared to the same period in 2024. This was due to project delays and customer purchasing cycle timing, which is a common issue in capital equipment sales, but it still represents a drag on overall performance.

Another strategic risk is the reliance on key personnel and the potential for labor relations issues. For a specialized manufacturer, losing key employees who hold deep institutional knowledge about their custom fastening solutions is a real threat to operational continuity and product quality.

The good news is CVR is actively working on mitigation, which is what you want to see. They recently consolidated their Albia operations into the Tyrone manufacturing facility. This move is a clear strategic action aimed at achieving meaningful cost savings through streamlined workflows and increased capacity utilization. This operational efficiency is a necessary countermeasure to the external cost pressures from inflation and supply chain issues. You can read more about the company's financial trajectory and what drove their Q3 2025 net income of $67,572 in our full analysis: Breaking Down Chicago Rivet & Machine Co. (CVR) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking for where Chicago Rivet & Machine Co. (CVR) can turn its recent operational momentum into sustained revenue growth, and the answer is a tactical pivot in their core markets. The company's return to profitability in the third quarter of 2025 is a critical signal, moving from a net loss of $1,446,621 in Q3 2024 to a net income of $67,572 in Q3 2025. This turnaround wasn't luck; it was driven by specific operational improvements and a strong rebound in their Fastener segment.

The near-term opportunity lies in capitalizing on the efficiency gains that drove the Q3 2025 gross profit up by a massive 91.3%. We're talking about a favorable product mix and better cost management truly showing up on the income statement. For the first nine months of 2025, the company posted a net income of $73,615, a significant shift from the $2,002,484 loss in the same period a year prior. That's a defintely solid foundation.

Key Growth Drivers and Strategic Focus

The primary growth driver is the Fastener segment's performance in the automotive sector, which is CVR's principal market. While North American vehicle production slowdowns caused a 9.0% drop in automotive sales for the nine months ended September 30, 2025, the third quarter showed a sharp reversal with an 18.2% increase in Fastener sales to automotive customers compared to Q3 2024. This suggests a successful capture of market share or a strong recovery in specific customer order volumes.

The future growth strategy must center on two areas:

• Fastener Innovation: Develop new cold-formed fasteners for lightweighting in Electric Vehicles (EVs) and advanced manufacturing.
• International Market Capture: Build on the Q3 2025 foreign sales, which reached $1,684,336, indicating a stronger performance outside the U.S.
• Assembly Equipment Backlog: Convert the 'timing-related factors' and project delays that caused the Assembly Equipment segment sales to decline by 11.2% in Q3 2025 into a strong Q4 and 2026 backlog.

Competitive Advantages and Earnings Outlook

Chicago Rivet & Machine Co.'s competitive moat isn't built on price; it's built on deep technical expertise and a century-long track record. They offer custom fastening solutions, application engineering support, and rigorous quality control that is essential for critical sectors like aerospace, medical devices, and their core automotive market. This is a high-barrier-to-entry business.

Here's the quick financial picture, based on the most recent trailing twelve months (TTM) data ending September 30, 2025:

The full 2025 fiscal year revenue is trending toward the TTM figure of $26.0 million. To project true growth, we need to see the full impact of the Q3 operational efficiencies in Q4. If the Q3 momentum holds, we could see a net income for the full year 2025 that is marginally positive, or at least a loss significantly smaller than the $5.62 million loss reported in 2024. You should monitor the company's commitment to its long-term vision, which you can review here: Mission Statement, Vision, & Core Values of Chicago Rivet & Machine Co. (CVR).

Next Step: Finance should model a Q4 2025 earnings estimate assuming a flat revenue quarter-over-quarter and applying the Q3 2025 gross margin to gauge the full-year profitability potential.