Maplebear Inc. (NASDAQ: CART)

Sector: Consumer Cyclical Industry: Internet Retail CIK: 0001579091
Market Cap 10.44 Bn
P/B 3.02
P/E 20.63
P/S 2.87
ROIC (Qtr) 12.99
Div Yield % 0.00
Rev 1y % (Qtr) 10.21
Total Debt (Qtr) 37.00 Mn
Debt/Equity (Qtr) 0.01

About

Maplebear Inc., known in the market as Instacart, is a technology company that operates in the online grocery industry. With the ticker symbol CART, Instacart has established itself as a significant player in this sector, collaborating with over 1,500 national, regional, and local retail banners. The company's business model is based on its proprietary technology, which empowers retailers to successfully navigate the digital transformation of their businesses. Instacart's platform offers a variety of solutions, including Instacart Marketplace,...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 941M provides robust 25.43x coverage of total debt 37M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 1.82B provide 605.33x coverage of short-term debt 3M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 4.07B provides 110.11x coverage of total debt 37M, indicating robust asset backing and low credit risk.
  • Tangible assets of 4.07B provide exceptional 18.60x coverage of deferred revenue 219M, showing strong service capability backing.
  • Robust free cash flow of 880M exceeds capital expenditure of 61M by 14.43x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 941M barely covers its investment activities of (244M), with a coverage ratio of -3.86, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (244M) provide weak support for R&D spending of 634M, which is -0.38x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 1.82B provide limited coverage of acquisition spending of (105M), which is -17.30x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 941M shows concerning coverage of stock compensation expenses of 339M, with a 2.78 ratio indicating potential earnings quality issues.
  • Free cash flow of 880M represents just -146.67x of debt issuance (6M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Internet Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AMZN Amazon Com Inc 2,526.56 Bn 33.03 3.65 135.42 Bn
2 BABA Alibaba Group Holding Ltd 395.87 Bn 22.47 2.79 39.55 Bn
3 PDD PDD Holdings Inc. 149.89 Bn 10.44 2.55 1.50 Bn
4 MELI Mercadolibre Inc 106.40 Bn 51.23 4.06 9.88 Bn
5 DASH DoorDash, Inc. 88.88 Bn 103.00 7.03 3.26 Bn
6 SE Sea Ltd 73.28 Bn 51.67 3.48 4.24 Bn
7 EBAY Ebay Inc 64.91 Bn 5.04 6.46 7.02 Bn
8 JD JD.com, Inc. 42.35 Bn 9.36 0.23 15.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.95 1.64
EV to Cash from Ops. EV/CFO 9.42 10.76
EV to Debt EV to Debt 239.55 18.39
EV to EBIT EV/EBIT 14.16 20.59
EV to EBITDA EV/EBITDA 13.70 20.75
EV to Free Cash Flow [EV/FCF] EV/FCF 10.07 16.58
EV to Market Cap EV to Market Cap 0.85 -3.15
EV to Revenue EV/Rev 2.44 -4.05
Price to Book Value [P/B] P/B 3.02 5.50
Price to Earnings [P/E] P/E 20.63 36.85
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 24.10 -93.84
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -203.90
Dividend per Basic Share Div per Share (Qtr) 0.00 0.08
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -3.46
Interest Coverage Interest Coverage 0.00 -1,581.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 10.29 -39.45
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 26.99 53.91
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 17.63 37.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 46.71 -62.59
EBIT Growth (1y) % EBIT 1y % (Qtr) 35.50 8.33
EBT Growth (1y) % EBT 1y % (Qtr) 35.50 -10.66
EPS Growth (1y) % EPS 1y % (Qtr) -81.84 13.44
FCF Growth (1y) % FCF 1y % (Qtr) 25.89 -46.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 8.81 23.19
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.80 1.17
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.04
Cash Ratio Cash Ratio (Qtr) 2.18 2.14
Current Ratio Curr Ratio (Qtr) 3.64 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.52
Interest Cover Ratio Interest Cover Ratio 0.00 -1,581.43
Times Interest Earned Times Interest Earned 0.00 -1,581.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 19.70 4.40
EBIT Margin % EBIT Margin % (Qtr) 17.23 -36.99
EBT Margin % EBT Margin % (Qtr) 17.23 -40.80
Gross Margin % Gross Margin % (Qtr) 74.50 44.74
Net Profit Margin % Net Margin % (Qtr) 13.90 -40.62