Forensic Analysis · Professional & Commercial Services · as of Nov 12, 2026
Addentax Group Corp. (ATXG)
A forensic read on Addentax Group Corp. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a quality and risk rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
5.1
Distress distance
Clean
Earnings quality
2
Forensic signals
-20.5%
ROE
28.5%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Addentax Group Corp. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 5.1, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-3.4%
FY2026
Return on invested capital.Return on invested capital is -3.4% in the latest fiscal year and steady across FY2024–FY2026, inside a 1.5-point range. After-tax operating profit was ($893,645) in FY2024 and ($1M) in FY2026, with operating income at -21.9% of revenue in FY2024, -43.5% in FY2025 and -28.5% in FY2026. The capital base behind it cannot be compared across FY2024–FY2026: long-term debt is tagged in one of those two fiscal years and not the other, and an untagged line enters this calculation as zero, so any change in the base would be a change in what the filer tagged.
1.3% of rev
FY2026
Stock-based comp load.Stock-based compensation ran 1.3% of revenue in FY2026 — about $0.10 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 78.5% a year across FY2025–FY2026, above the level at which the count is a material claim on a stake, and only one year's change is on file — enough to state what a holder gave up, not enough to say whether the rate is climbing or coming down. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$5.4M
Revenue Growth YoY+28.5%
Revenue CAGR (2yr)+2.1%
Net Margin-83.2%
Free Cash Flow-$784,497
Return on Equity-20.5%
Debt / Equity0.16x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Addentax Group Corp.'s actual 10-K/10-Q/8-K filings?