Rich Sparkle Holdings Ltd (NASDAQ: ANPA)

Sector: Industrials Industry: Specialty Business Services CIK: 0002031688
Market Cap 217.89 Mn
P/B 38.59
P/E 1,639.09
P/S 34.87
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 696,270.00
Debt/Equity (Qtr) 0.12
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About

Investment thesis

Bull case

  • Strong operating cash flow of 372473 provides robust 0.53x coverage of total debt 696270, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 3.78M provide 8.06x coverage of short-term debt 469826, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 8.49M provides 12.20x coverage of total debt 696270, indicating robust asset backing and low credit risk.
  • Tangible assets of 8.49M provide exceptional 518.12x coverage of deferred revenue 16393, showing strong service capability backing.
  • Operating cash flow of 372473 provides strong 22.72x coverage of deferred revenue 16393, indicating service delivery capability.

Bear case

  • Operating cash flow of 372473 barely covers its investment activities of (551544), with a coverage ratio of -0.68, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of (179071) provides weak coverage of capital expenditures of 551544, with a -0.32 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 244364 show weak coverage of depreciation charges of 594986, with a 0.41 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 372473 barely covers operating expenses of (456019) with a -0.82 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • High depreciation of 594986 relative to operating cash flow of 372473, which is 1.60x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the Specialty Business Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CTAS Cintas Corp 120.08 Bn 556.91 33.85 3.24 Bn
2 RELX Relx Plc 56.19 Bn 20.01 4.34 9.82 Bn
3 TRI Thomson Reuters Corp /Can/ 37.42 Bn 24.91 5.00 2.44 Bn
4 CPRT Copart Inc 36.25 Bn 22.74 7.79 0.10 Bn
5 RBA Rb Global Inc. 19.20 Bn 49.09 4.24 4.21 Bn
6 ULS UL Solutions Inc. 14.12 Bn 43.32 4.92 0.74 Bn
7 GPN Global Payments Inc 11.52 Bn 284.78 8.66 16.20 Bn
8 ARMK Aramark 10.37 Bn 32.72 0.55 6.57 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 25.71 2.48
EV to Cash from Ops. EV/CFO 586.30 30.22
EV to Debt EV to Debt 313.64 31.08
EV to EBIT EV/EBIT 893.66 94.66
EV to EBITDA EV/EBITDA 315.52 18.37
EV to Free Cash Flow [EV/FCF] EV/FCF -1,219.51 -20.73
EV to Market Cap EV to Market Cap 1.00 178.66
EV to Revenue EV/Rev 34.94 8.12
Price to Book Value [P/B] P/B 38.59 5.37
Price to Earnings [P/E] P/E 1,639.09 65.19
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -15,800.59
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 10.14
Dividend per Basic Share Div per Share (Qtr) 0.00 0.35
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 7.65
Interest Coverage Interest Coverage 4.35 30.46
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -178.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1,082.15 155.14
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.38
EBIAT Growth (1y) % EBIAT Growth (1y) % -79.88 -34.92
EBITDA Growth (1y) % EBITDA Growth (1y) % -55.04 -86.28
EBIT Growth (1y) % EBIT Growth (1y) % -75.63 -22.62
EBT Growth (1y) % EBT Growth (1y) % -80.37 -287.35
EPS Growth (1y) % EPS Growth (1y) % -84.93 -118.47
FCF Growth (1y) % FCF Growth (1y) % -122.28 -146.43
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 12.68 2.63
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.74 0.84
Cash Payout Ratio Cash Payout Ratio 0.00 -0.03
Cash Ratio Cash Ratio (Qtr) 1.46 1.15
Current Ratio Curr Ratio (Qtr) 2.68 4.12
Debt to Equity Ratio Debt/Equity (Qtr) 0.12 0.92
Interest Cover Ratio Interest Cover Ratio 4.35 30.46
Times Interest Earned Times Interest Earned 4.35 30.46
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 13.40 -33.89
EBIT Margin % EBIT Margin % 3.91 -43.32
EBT Margin % EBT Margin % 3.01 -44.88
Gross Margin % Gross Margin % 46.20 39.81
Net Profit Margin % Net Profit Margin % 2.10 -41.60