CCSC Technology International Holdings Ltd (NASDAQ: CCTG)

Sector: Industrials Industry: Electrical Equipment & Parts CIK: 0001931717
Market Cap 725,084.42
P/B 0.07
P/E -0.44
P/S 0.04
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 1.14 Mn
Debt/Equity (Qtr) 0.11
Add ratio to table...

About

CCSC Technology International Holdings Ltd (CCTG) operates in the electronics industry, with its primary business activities centered around the sale, design, and manufacturing of interconnect products such as connectors, cables, and wire harnesses. The company boasts a global customer base, serving over 25 countries across Asia, Europe, and the Americas. In terms of its operations, CCSC Technology generates revenue through the sale of its interconnect products, which are designed and manufactured in-house at its Dongguan factory in Guangdong province,...

Read more

Investment thesis

Bull case

  • Healthy cash reserves of 2.83M provide 5.31x coverage of short-term debt 531656, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 15.14M provides 13.33x coverage of total debt 1.14M, indicating robust asset backing and low credit risk.
  • Retained earnings of 6.11M provide full 10.10x coverage of long-term debt 604751, indicating strong internal capital position.
  • Robust tangible asset base of 15.14M provides 3.88x coverage of working capital 3.90M, indicating strong operational backing.
  • Tangible assets of 15.14M provide robust 8.76x coverage of other current liabilities 1.73M, indicating strong asset backing.

Bear case

  • Operating cash flow of (306780) barely covers its investment activities of (704662), with a coverage ratio of 0.44, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (704662) provide weak support for R&D spending of 652981, which is -1.08x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of (976564) provides weak coverage of capital expenditures of 669784, with a -1.46 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (306780) provides minimal 1.66x coverage of tax expenses of (184549), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (1.80M) show weak coverage of depreciation charges of 798465, with a -2.26 ratio indicating high capital intensity and potential reinvestment needs.

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 -0.11 3.49
EV to Cash from Ops. EV/CFO 5.54 9.10
EV to Debt EV to Debt -1.49 113.17
EV to EBIT EV/EBIT 0.94 -17.64
EV to EBITDA EV/EBITDA 1.29 3.56
EV to Free Cash Flow [EV/FCF] EV/FCF 1.74 39.13
EV to Market Cap EV to Market Cap -2.34 2.59
EV to Revenue EV/Rev -0.10 77.74
Price to Book Value [P/B] P/B 0.07 4.98
Price to Earnings [P/E] P/E -0.44 23.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -2.92
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 3.27
Dividend per Basic Share Div per Share (Qtr) 0.00 0.37
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 1.79
Interest Coverage Interest Coverage -98.87 -16.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 84.56 -135.37
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -29.36 92.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.22
EBIAT Growth (1y) % EBIAT Growth (1y) % 33.22 -45.52
EBITDA Growth (1y) % EBITDA Growth (1y) % 18.29 -56.26
EBIT Growth (1y) % EBIT Growth (1y) % 31.48 -64.20
EBT Growth (1y) % EBT Growth (1y) % 31.52 8.52
EPS Growth (1y) % EPS Growth (1y) % 39.13 13.91
FCF Growth (1y) % FCF Growth (1y) % 88.07 -66.58
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 7.33 15.53
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 1.11 0.63
Cash Payout Ratio Cash Payout Ratio 0.00 -0.10
Cash Ratio Cash Ratio (Qtr) 0.61 3.50
Current Ratio Curr Ratio (Qtr) 1.84 5.07
Debt to Equity Ratio Debt/Equity (Qtr) 0.11 0.41
Interest Cover Ratio Interest Cover Ratio -98.87 -16.86
Times Interest Earned Times Interest Earned -98.87 -16.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % -6.00 -1,947.23
EBIT Margin % EBIT Margin % -10.69 -2,051.19
EBT Margin % EBT Margin % -10.79 -2,170.94
Gross Margin % Gross Margin % 27.90 2.02
Net Profit Margin % Net Profit Margin % -9.70 -2,202.04