CBAK Energy Technology, Inc. (NASDAQ: CBAT)

Sector: Industrials Industry: Electrical Equipment & Parts CIK: 0001117171
Market Cap 95.81 Mn
P/B 0.79
P/E -14.71
P/S 0.59
ROIC (Qtr) -11.42
Div Yield % 0.00
Rev 1y % (Qtr) 36.51
Total Debt (Qtr) 38.00 Mn
Debt/Equity (Qtr) 0.31
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About

Investment thesis

Bull case

  • Strong operating cash flow of 28.37M provides robust 0.75x coverage of total debt 38M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 28.37M provides strong 163.40x coverage of stock compensation 173645, indicating sustainable incentive practices.
  • Strong tangible asset base of 363.79M provides 9.57x coverage of total debt 38M, indicating robust asset backing and low credit risk.
  • Free cash flow of (9.16M) provides exceptional 18.08x coverage of interest expense (506873), showing strong debt service ability.
  • Tangible assets of 363.79M provide robust 4.65x coverage of other current liabilities 78.31M, indicating strong asset backing.

Bear case

  • Operating cash flow of 28.37M barely covers its investment activities of (32.37M), with a coverage ratio of -0.88, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (32.37M) provide weak support for R&D spending of 14.30M, which is -2.26x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 52.87M significantly exceed cash reserves of 10.48M, which is 5.05x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Operating cash flow of 28.37M provides minimal -34.85x coverage of tax expenses of (814040), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (9.16M) provides weak coverage of capital expenditures of 37.54M, with a -0.24 ratio suggesting additional external financing needs for growth initiatives.

Concentration Risk Type Breakdown of Revenue (2024)

Concentration Risk Type Breakdown of Revenue (2024)

Peer comparison

Companies in the Electrical Equipment & Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VRT Vertiv Holdings Co 93.00 Bn 69.78 9.09 3.16 Bn
2 BE Bloom Energy Corp 34.73 Bn -392.76 17.16 2.99 Bn
3 HUBB Hubbell Inc 27.97 Bn 31.52 4.78 2.33 Bn
4 NVT nVent Electric plc 19.43 Bn 76.81 8.40 1.56 Bn
5 AYI Acuity Inc. (De) 12.85 Bn 109.95 6.86 0.91 Bn
6 AEIS Advanced Energy Industries Inc 11.80 Bn 79.52 6.56 0.68 Bn
7 NVX NOVONIX Ltd 11.53 Bn -174.00 1,943.36 -
8 ENS EnerSys 6.79 Bn 21.71 1.82 1.18 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.36 3.49
EV to Cash from Ops. EV/CFO 4.68 9.10
EV to Debt EV to Debt 3.49 113.17
EV to EBIT EV/EBIT -16.94 -17.64
EV to EBITDA EV/EBITDA -15.31 3.56
EV to Free Cash Flow [EV/FCF] EV/FCF -14.48 39.13
EV to Market Cap EV to Market Cap 1.39 2.59
EV to Revenue EV/Rev 0.82 77.74
Price to Book Value [P/B] P/B 0.79 4.98
Price to Earnings [P/E] P/E -14.71 23.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -2.92
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.27
Dividend per Basic Share Div per Share (Qtr) 0.00 0.37
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.79
Interest Coverage Int. cover (Qtr) 15.45 -16.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -114.51 -135.37
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.27 92.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.22
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -165.39 -45.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -142.64 -56.26
EBIT Growth (1y) % EBIT 1y % (Qtr) -149.26 -64.20
EBT Growth (1y) % EBT 1y % (Qtr) -142.54 8.52
EPS Growth (1y) % EPS 1y % (Qtr) -158.33 13.91
FCF Growth (1y) % FCF 1y % (Qtr) -123.90 -66.58
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -65.88 15.53
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.44 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.10
Cash Ratio Cash Ratio (Qtr) 0.05 3.50
Current Ratio Curr Ratio (Qtr) 0.69 5.07
Debt to Equity Ratio Debt/Equity (Qtr) 0.31 0.41
Interest Cover Ratio Int Coverage (Qtr) 15.45 -16.86
Times Interest Earned Times Interest Earned (Qtr) 15.45 -16.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.30 -1,947.23
EBIT Margin % EBIT Margin % (Qtr) -4.84 -2,051.19
EBT Margin % EBT Margin % (Qtr) -4.53 -2,170.94
Gross Margin % Gross Margin % (Qtr) 10.80 2.02
Net Profit Margin % Net Margin % (Qtr) -4.00 -2,202.04