BigBear.ai Holdings, Inc. (NYSE: BBAI)

Sector: Technology Industry: Information Technology Services CIK: 0001836981
Market Cap 1.09 Bn
P/B 1.79
P/E -2.51
P/S 7.56
ROIC (Qtr) -24.21
Div Yield % 0.00
Rev 1y % (Qtr) -20.15
Total Debt (Qtr) 112.89 Mn
Debt/Equity (Qtr) 0.19
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About

BigBear.ai Holdings, Inc., known by its ticker symbol BBAI, operates in the technology industry, specializing in Edge AI-powered decision intelligence solutions. The company's offerings cater to national security, supply chain management, and digital identity sectors. BigBear.ai's headquarters are in the United States, and it boasts a global customer base spanning the public and private sectors. Founded on a mission-first culture, BigBear.ai focuses on delivering outcomes. Its success hinges on high-caliber talent, understanding the evolving challenges...

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Investment thesis

Bull case

  • Healthy cash reserves of 456.58M provide 425.52x coverage of short-term debt 1.07M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 758.64M provides 6.72x coverage of total debt 112.89M, indicating robust asset backing and low credit risk.
  • Tangible assets of 758.64M provide exceptional 216.32x coverage of deferred revenue 3.51M, showing strong service capability backing.
  • Long-term investments of 128.78M provide solid 1.15x coverage of long-term debt 111.82M, indicating strategic financial planning.
  • Operating cash flow of (34.92M) fully covers other non-current liabilities (3.51M) by 9.96x, showing strong long-term stability.

Bear case

  • Operating cash flow of (34.92M) barely covers its investment activities of (266.27M), with a coverage ratio of 0.13, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (266.27M) provide weak support for R&D spending of 14.27M, which is -18.66x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (34.92M) provides insufficient coverage of deferred revenue obligations of 3.51M, which is -9.96x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (34.92M) shows concerning coverage of stock compensation expenses of 22.09M, with a -1.58 ratio indicating potential earnings quality issues.
  • Operating earnings of (405.65M) show weak coverage of depreciation charges of 16.30M, with a -24.88 ratio indicating high capital intensity and potential reinvestment needs.

Concentration Risk Benchmark Breakdown of Revenue (2024)

Peer comparison

Companies in the Information Technology Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 IBM International Business Machines Corp 229.77 Bn 29.79 2.98 66.57 Bn
2 ACN Accenture plc 136.96 Bn 17.99 1.94 8.20 Bn
3 INFY Infosys Ltd 61.29 Bn 19.41 3.18 0.68 Bn
4 CTSH Cognizant Technology Solutions Corp 31.81 Bn 14.26 1.51 1.15 Bn
5 FIS Fidelity National Information Services, Inc. 28.54 Bn -1.17 2.90 13.00 Bn
6 WIT Wipro Ltd 23.98 Bn 16.25 2.37 2.35 Bn
7 LDOS Leidos Holdings, Inc. 20.68 Bn 14.28 1.20 5.24 Bn
8 BR Broadridge Financial Solutions, Inc. 20.38 Bn 19.09 2.84 3.17 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.88 1.23
EV to Cash from Ops. EV/CFO -23.26 3.12
EV to Debt EV to Debt 7.20 3.45
EV to EBIT EV/EBIT -2.00 -4.05
EV to EBITDA EV/EBITDA -6.88 3.57
EV to Free Cash Flow [EV/FCF] EV/FCF -19.14 -2.69
EV to Market Cap EV to Market Cap 0.74 1.54
EV to Revenue EV/Rev 5.63 47.25
Price to Book Value [P/B] P/B 1.79 3.04
Price to Earnings [P/E] P/E -2.51 4.15
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.59
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 14.14
Dividend per Basic Share Div per Share (Qtr) 0.00 0.47
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.61
Interest Coverage Int. cover (Qtr) -13.92 -318.37
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 14.30 -256.13
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 596.18 128.67
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.73
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -160.99 -36.77
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1.94 -22.62
EBIT Growth (1y) % EBIT 1y % (Qtr) -160.78 -87.06
EBT Growth (1y) % EBT 1y % (Qtr) -129.85 75.53
EPS Growth (1y) % EPS 1y % (Qtr) -57.00 122.99
FCF Growth (1y) % FCF 1y % (Qtr) -31.95 -8,761.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -5.97 -4.36
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.16 0.79
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 2.31 0.73
Current Ratio Curr Ratio (Qtr) 3.13 2.20
Debt to Equity Ratio Debt/Equity (Qtr) 0.19 0.98
Interest Cover Ratio Int Coverage (Qtr) -13.92 -318.37
Times Interest Earned Times Interest Earned (Qtr) -13.92 -318.37
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -270.00 -369.53
EBIT Margin % EBIT Margin % (Qtr) -281.32 -585.52
EBT Margin % EBT Margin % (Qtr) -301.52 -637.04
Gross Margin % Gross Margin % (Qtr) 27.30 24.60
Net Profit Margin % Net Margin % (Qtr) -301.40 -639.67