Heritage Distilling Holding Company, Inc. (CASK) stock analysis

In our weekly check, Heritage Distilling Holding Company, Inc. is graded F (A to F). Of 23 checks on debt, profit, cash flow and trend: 6 pass, warnings: 6, red flags: 11.

About Heritage Distilling Holding Company, Inc.

Heritage Distilling Holding Company, Inc. is a Consumer Defensive company (Beverages - Alcoholic) based in the United States, listed on NASDAQ as CASK.

What our checks show for CASK

Red flags

• The company has net debt but no positive operating earnings (EBITDA) to service it from (debt/equity 0.58).
• Operating profit does not cover the interest bill (-30x): interest is paid from cash or new debt.
• The net margin fell by 66 points over 5 years, to -51.4%: the company keeps less of each sale as profit.
• Revenue fell 14.6% a year over the last 3 years.
• Weak EPS growth
• The company is losing money: the net margin is -51.4%.
• Heritage Distilling Holding Company, Inc. pays a dividend while losing money: it is funded from reserves or debt.
• The stock has fallen as much as 98% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 6.7 years.
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.
• Pay in shares equals 702% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect earnings per share to shrink about 50.2% a year.
• Analysts expect only about 4.6% a year of growth in revenue.
• Free cash flow is only 0.1% of revenue.
• A small company (market value $380 million): usually riskier and followed by fewer analysts.
• The price swings a lot: 48.6% annual volatility. Expect large ups and downs.
• Thinly traded (about 251 thousand shares a day): buying and selling can move the price.

Strengths

• The gross margin is 34.7% and has risen by 2.9 points: pricing power is holding.
• Operating cash flow is 0.08x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 61.1 points from today's -51.4%.
• Beta 0.44: the stock usually moves less than the market.

Similar companies

APEI · HELE · LINC · OTLY

Questions

What grade does Heritage Distilling Holding Company, Inc. (CASK) have?

In our weekly check, Heritage Distilling Holding Company, Inc. is graded F (A to F). Of 23 checks on debt, profit, cash flow and trend: 6 pass, warnings: 6, red flags: 11. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of CASK stock?

This week's biggest flags for Heritage Distilling Holding Company, Inc.: High debt, Weak interest cover, Margins falling. In total 17 of 23 checks show a warning or a red flag.

What does Heritage Distilling Holding Company, Inc. do?

Heritage Distilling Holding Company, Inc. is a Consumer Defensive company (Beverages - Alcoholic) based in the United States, listed on NASDAQ as CASK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-11-07

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