Bos Better Online Solutions Ltd (NASDAQ: BOSC)

Sector: Technology Industry: Communication Equipment CIK: 0001005516
Market Cap 27.16 Mn
P/B 1.08
P/E 8.29
P/S 0.56
ROIC (Qtr) 6.75
Div Yield % 0.00
Rev 1y % (Qtr) 15.93
Total Debt (Qtr) 1.96 Mn
Debt/Equity (Qtr) 0.08

About

BOS Better Online Solutions Ltd, also known as BOSC, operates in the technology industry, providing comprehensive solutions that enhance inventory control and productivity in production and logistics processes. Established in Israel in 1990, the company is listed on the Nasdaq Capital Market. BOS' operations span three divisions: Intelligent Robotics, RFID, and Supply Chain Solutions. The Intelligent Robotics Division specializes in custom-made machines for industrial automation, product assembly, and packing, offering technological solutions that...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 7.32M provide 21.08x coverage of short-term debt 347000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 34.52M provides 17.61x coverage of total debt 1.96M, indicating robust asset backing and low credit risk.
  • Tangible assets of 34.52M provide exceptional 9.92x coverage of deferred revenue 3.48M, showing strong service capability backing.
  • Tangible assets of 34.52M provide robust 6.94x coverage of other current liabilities 4.98M, indicating strong asset backing.
  • Cash position of 7.32M provides strong 2.10x coverage of deferred revenue 3.48M, ensuring service delivery capability.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 181000, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 15.13M relative to inventory of 6.62M (2.29 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 3.48M, which is 0x, raising concerns about future service delivery capabilities.
  • Operating cash flow of 0 provides minimal -0x coverage of tax expenses of (816000), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • R&D investment of 181000 represents just 0.02x of SG&A expenses of 7.40M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Communication Equipment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CSCO Cisco Systems, Inc. 306.02 Bn 29.63 5.30 28.09 Bn
2 MSI Motorola Solutions, Inc. 63.92 Bn 30.21 5.65 9.81 Bn
3 HPE Hewlett Packard Enterprise Co 35.43 Bn -600.50 1.03 22.37 Bn
4 UI Ubiquiti Inc. 33.47 Bn 42.27 12.14 0.17 Bn
5 CIEN Ciena Corp 33.16 Bn 268.82 6.95 1.58 Bn
6 LITE Lumentum Holdings Inc. 25.28 Bn 224.75 13.73 3.28 Bn
7 ASTS AST SpaceMobile, Inc. 19.88 Bn -65.43 1,072.82 0.72 Bn
8 ZBRA Zebra Technologies Corp 12.46 Bn 24.33 2.37 2.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.63 2.22
EV to Cash from Ops. EV/CFO 9.93 10.78
EV to Debt EV to Debt 12.30 25.00
EV to EBIT EV/EBIT 12.19 32.18
EV to EBITDA EV/EBITDA 10.64 10.60
EV to Free Cash Flow [EV/FCF] EV/FCF 12.79 -3.32
EV to Market Cap EV to Market Cap 0.89 1.17
EV to Revenue EV/Rev 0.50 27.87
Price to Book Value [P/B] P/B 1.08 5.35
Price to Earnings [P/E] P/E 8.29 2.67
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.91
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -25.01
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 4.46
Interest Coverage Int. cover (Qtr) -4.11 -12.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -73.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 263.26 463.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.39
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 7.59 204.95
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 -1.04
EBIT Growth (1y) % EBIT 1y % (Qtr) -19.42 238.24
EBT Growth (1y) % EBT 1y % (Qtr) 9.38 173.82
EPS Growth (1y) % EPS 1y % (Qtr) 41.03 8.68
FCF Growth (1y) % FCF Growth (1y) % 0.00 20.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 27.00 41.66
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.26 0.76
Cash Payout Ratio Cash Payout Ratio 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.69 1.20
Current Ratio Curr Ratio (Qtr) 2.76 2.69
Debt to Equity Ratio Debt/Equity (Qtr) 0.08 0.43
Interest Cover Ratio Int Coverage (Qtr) -4.11 -12.93
Times Interest Earned Times Interest Earned (Qtr) -4.11 -12.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -40.66
EBIT Margin % EBIT Margin % (Qtr) 4.09 -52.32
EBT Margin % EBT Margin % (Qtr) 5.09 -59.46
Gross Margin % Gross Margin % (Qtr) 23.70 39.35
Net Profit Margin % Net Margin % (Qtr) 6.80 -60.72