Senmiao Technology Ltd (NASDAQ: AIHS)

Sector: Industrials Industry: Rental & Leasing Services CIK: 0001711012
Market Cap 1.79 Mn
P/B 4.51
P/E -0.49
P/S 0.60
ROIC (Qtr) 326.50
Div Yield % 0.00
Rev 1y % (Qtr) -20.55
Total Debt (Qtr) 56,506.00
Debt/Equity (Qtr) 0.14
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About

Senmiao Technology Ltd, a U.S. holding company incorporated in Nevada, is a significant player in the online ride-hailing industry in China. The company, which is publicly traded under the symbol AIHS, operates primarily in the automobile transaction and related services, online ride-hailing platform services, and other supporting services sectors. Senmiao's main business activities include automobile transaction and related services, online ride-hailing platform services, and other supporting services. The company's automobile transaction and...

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Investment thesis

Bull case

  • Healthy cash reserves of 3.51M provide 75.78x coverage of short-term debt 46295, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of (1.30M) exceeds capital expenditure of (5672) by 229.31x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 5.42M provides 95.96x coverage of total debt 56506, indicating robust asset backing and low credit risk.
  • Strong free cash flow of (1.30M) provides 5.29x coverage of acquisition spending (246001), indicating disciplined M&A strategy.
  • Long-term investments of 7176 provide solid 0.70x coverage of long-term debt 10211, indicating strategic financial planning.

Bear case

  • Cash reserves of 3.51M provide limited coverage of acquisition spending of (246001), which is -14.26x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (1.31M) shows concerning coverage of stock compensation expenses of 250000, with a -5.23 ratio indicating potential earnings quality issues.
  • Operating earnings of (3.62M) show weak coverage of depreciation charges of 1.06M, with a -3.43 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (1.30M) represents just -30.48x of debt issuance 42678, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of (1.31M) barely covers operating expenses of 1.99M with a -0.66 ratio, suggesting thin operational efficiency margins and limited flexibility.

Segments Breakdown of Revenue (2023)

Peer comparison

Companies in the Rental & Leasing Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 URI United Rentals, Inc. 55.62 Bn 22.30 3.45 15.35 Bn
2 FTAI FTAI Aviation Ltd. 27.80 Bn -179.72 106.00 3.45 Bn
3 AER AerCap Holdings N.V. 26.27 Bn 7.00 3.08 43.57 Bn
4 UHAL U-Haul Holding Co /NV/ 13.75 Bn 106.91 2.29 8.06 Bn
5 GATX Gatx Corp 9.00 Bn 53.16 6.81 9.03 Bn
6 R Ryder System Inc 8.88 Bn 17.80 0.70 7.65 Bn
7 AL Air Lease Corp 7.23 Bn 6.92 2.40 19.73 Bn
8 HRI Herc Holdings Inc 5.00 Bn 5,004.00 1.14 9.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.21 1.32
EV to Cash from Ops. EV/CFO -0.93 77.20
EV to Debt EV to Debt 21.46 3.45
EV to EBIT EV/EBIT -0.33 -105.66
EV to EBITDA EV/EBITDA -0.38 20.85
EV to Free Cash Flow [EV/FCF] EV/FCF -0.93 -1.38
EV to Market Cap EV to Market Cap 0.68 3.10
EV to Revenue EV/Rev 0.40 9.87
Price to Book Value [P/B] P/B 4.51 7.72
Price to Earnings [P/E] P/E -0.49 277.95
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 3.00
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 500.03
Dividend per Basic Share Div per Share (Qtr) 0.00 1.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.22
Interest Coverage Int. cover (Qtr) -1,192.77 -60.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 147.20 17.05
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 269.59 54.66
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.10
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -9.24 38.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -39.89 5.40
EBIT Growth (1y) % EBIT 1y % (Qtr) -9.91 2.84
EBT Growth (1y) % EBT 1y % (Qtr) -9.49 42.60
EPS Growth (1y) % EPS 1y % (Qtr) 24.23 243.85
FCF Growth (1y) % FCF 1y % (Qtr) -550.19 5.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 32.14 31.59
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.52 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 1.81 0.21
Current Ratio Curr Ratio (Qtr) 2.24 1.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.14 20.57
Interest Cover Ratio Int Coverage (Qtr) -1,192.77 -60.94
Times Interest Earned Times Interest Earned (Qtr) -1,192.77 -60.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -85.60 35.32
EBIT Margin % EBIT Margin % (Qtr) -120.77 12.98
EBT Margin % EBT Margin % (Qtr) -120.87 3.50
Gross Margin % Gross Margin % (Qtr) 28.10 42.91
Net Profit Margin % Net Margin % (Qtr) -120.90 1.24