Blaize Holdings, Inc. (NASDAQ: BZAI)

Sector: Technology Industry: Software - Application CIK: 0001871638
Market Cap 177.75 Mn
P/B 136.11
P/E -0.85
P/S 11.96
ROIC (Qtr) -2,408.99
Div Yield % 0.00
Rev 1y % (Qtr) 1,419.46
Total Debt (Qtr) 5.98 Mn
Debt/Equity (Qtr) 4.58

About

BurTech Acquisition Corp., also known as BTAQ, operates in the industry of special purpose acquisition companies (SPACs). This newly organized Delaware corporation was formed in March 2021 with the purpose of executing a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The main business activities of BurTech are centered around identifying and acquiring a target business in a specific industry, although it has not yet selected a particular business combination...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 24M provide 4.77x coverage of short-term debt 5.04M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 60.90M provides 10.18x coverage of total debt 5.98M, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 60.90M provides 3.39x coverage of working capital 17.98M, indicating strong operational backing.
  • Cash reserves of 24M provide solid 1.10x coverage of other non-current liabilities 21.85M, indicating strong liquidity.
  • Robust R&D investment of 41.74M at 0.86x of SG&A 48.55M demonstrates strong commitment to innovation and future growth.

Bear case

  • Investment activities of (444000) provide weak support for R&D spending of 41.74M, which is -0.01x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (75.03M) shows concerning coverage of stock compensation expenses of 2.81M, with a -26.75 ratio indicating potential earnings quality issues.
  • Operating earnings of (211.38M) show weak coverage of depreciation charges of 402000, with a -525.82 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (75.48M) provides weak coverage of capital expenditures of 444000, with a -170 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (75.03M) barely covers operating expenses of 13.30M with a -5.64 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.54 2.65
EV to Cash from Ops. EV/CFO -2.07 13.37
EV to Debt EV to Debt 25.90 57.69
EV to EBIT EV/EBIT -0.73 19.12
EV to EBITDA EV/EBITDA -1.56 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF -2.05 14.69
EV to Market Cap EV to Market Cap 0.87 -92.28
EV to Revenue EV/Rev 10.43 4.60
Price to Book Value [P/B] P/B 136.11 4.26
Price to Earnings [P/E] P/E -0.85 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) 0.00 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 66.11 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -65.03 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -165.44 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -128.78 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -166.24 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -166.24 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 62.28 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -73.76 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 430.78 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.24 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.65 3.75
Current Ratio Curr Ratio (Qtr) 1.49 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 4.58 0.17
Interest Cover Ratio Int Coverage (Qtr) 0.00 -52.32
Times Interest Earned Times Interest Earned (Qtr) 0.00 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1,420.00 -100.06
EBIT Margin % EBIT Margin % (Qtr) -1,422.75 -164.24
EBT Margin % EBT Margin % (Qtr) -1,422.75 -116.94
Gross Margin % Gross Margin % (Qtr) 27.60 58.20
Net Profit Margin % Net Margin % (Qtr) -1,415.50 -121.65