Creative Global Technology Holdings Ltd (NASDAQ: CGTL)

Sector: Consumer Cyclical Industry: Specialty Retail CIK: 0001967822
Market Cap 68.26 Mn
P/B 3.78
P/E -5.11
P/S 3.23
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 18,665.00
Debt/Equity (Qtr) 0.00
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About

Investment thesis

Bull case

  • Healthy cash reserves of 185240 provide 9.92x coverage of short-term debt 18665, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 18.29M provides 979.85x coverage of total debt 18665, indicating robust asset backing and low credit risk.
  • Tangible assets of 18.29M provide robust 78.63x coverage of other current liabilities 232586, indicating strong asset backing.
  • Cash reserves of 185240 provide comfortable 2.10x coverage of tax obligations 88214, showing strong fiscal management.
  • Tangible assets of 18.29M provide robust 72.73x coverage of current liabilities 251460, showing strong asset backing.

Bear case

  • With cash reserves of 185240 against inventory of 14.67M, the 0.01 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • The company's operating cash flow of (4.81M) shows concerning coverage of stock compensation expenses of 14.24M, with a -0.34 ratio indicating potential earnings quality issues.
  • Operating earnings of (13.16M) show weak coverage of depreciation charges of 16736, with a -786.19 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (4.81M) provides minimal -22.69x coverage of tax expenses of 212053, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating cash flow of (4.81M) barely covers operating expenses of 14.24M with a -0.34 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Specialty Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ULTA Ulta Beauty, Inc. 32.20 Bn 27.06 2.69 2.57 Bn
2 WSM Williams Sonoma Inc 29.62 Bn 25.19 3.40 1.47 Bn
3 TSCO Tractor Supply Co /De/ 28.42 Bn 25.23 1.93 5.72 Bn
4 DKS Dick'S Sporting Goods, Inc. 24.98 Bn 88.10 4.64 7.70 Bn
5 CASY Caseys General Stores Inc 24.65 Bn 59.49 1.65 2.92 Bn
6 BBY Best Buy Co Inc 17.85 Bn 11.66 0.41 4.09 Bn
7 MUSA Murphy USA Inc. 15.91 Bn 61.33 1.35 2.75 Bn
8 FIVE Five Below, Inc 11.68 Bn 37.94 2.64 2.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.72 2.23
EV to Cash from Ops. EV/CFO -14.16 14.70
EV to Debt EV to Debt 3,649.02 79.39
EV to EBIT EV/EBIT -5.18 -40.16
EV to EBITDA EV/EBITDA -5.18 11.51
EV to Free Cash Flow [EV/FCF] EV/FCF -14.16 -286.14
EV to Market Cap EV to Market Cap 1.00 6.33
EV to Revenue EV/Rev 3.22 2.39
Price to Book Value [P/B] P/B 3.78 32.78
Price to Earnings [P/E] P/E -5.11 -36.32
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -4.05
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 14.19
Dividend per Basic Share Div per Share (Qtr) 0.00 0.71
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 18.58
Interest Coverage Interest Coverage 0.00 4.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 13.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -58.22 33.75
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT Growth (1y) % -412.20 -272.99
EBITDA Growth (1y) % EBITDA Growth (1y) % -349.52 588.45
EBIT Growth (1y) % EBIT Growth (1y) % -353.73 29.27
EBT Growth (1y) % EBT Growth (1y) % -353.73 -92.23
EPS Growth (1y) % EPS Growth (1y) % -371.43 -121.86
FCF Growth (1y) % FCF Growth (1y) % -35.80 71.80
Gross Profit Growth (1y) % Gross Profit Growth (1y) % -63.93 2.50
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 1.16 1.24
Cash Payout Ratio Cash Payout Ratio 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.74 0.74
Current Ratio Curr Ratio (Qtr) 72.54 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 25.92
Interest Cover Ratio Interest Cover Ratio 0.00 4.43
Times Interest Earned Times Interest Earned 0.00 4.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % -62.10 -42.64
EBIT Margin % EBIT Margin % -62.21 -131.12
EBT Margin % EBT Margin % -62.21 -64.70
Gross Margin % Gross Margin % 10.80 30.93
Net Profit Margin % Net Profit Margin % -63.20 -65.71