Chagee Holdings Ltd. (NASDAQ: CHA)

Sector: Consumer Cyclical Industry: Restaurants CIK: 0002013649
Market Cap 2.08 Bn
P/B 0.25
P/E 0.87
P/S 0.17
ROIC (Qtr) 0.00
Div Yield % 7.39
Rev 1y % (Qtr) -9.40
Total Debt (Qtr) 1.00 Bn
Debt/Equity (Qtr) 0.12

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 9.14B provide 28.93x coverage of short-term debt 315.98M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 11.88B provides 11.86x coverage of total debt 1B, indicating robust asset backing and low credit risk.
  • Retained earnings of 3.87B provide full 5.65x coverage of long-term debt 685.25M, indicating strong internal capital position.
  • Cash reserves of 9.14B provide solid 43.92x coverage of other non-current liabilities 208.14M, indicating strong liquidity.
  • Cash reserves of 9.14B exceed inventory value of 173.11M by 52.81x, indicating strong liquidity and inventory management.

Bear case

  • Retained earnings of 3.87B provide limited buffer against comprehensive income items of (54.02M), which is -71.72x, indicating elevated exposure to market risks.
  • Tangible assets of 11.88B provide limited backing for working capital of 7.56B, which is 1.57x, suggesting increased operational risk in market downturns.
  • Current liabilities of 2.35B significantly exceed receivables of 162.18M, which is 14.47x, indicating potential working capital stress.
  • Other current liabilities of 1.48B represent a high 9.15x of receivables 162.18M, suggesting potential short-term liquidity pressure.
  • Short-term debt of 315.98M exceeds receivables of 162.18M by 1.95x, suggesting potential refinancing risk if collections slow.

Peer comparison

Companies in the Restaurants
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MCD Mcdonalds Corp 222.05 Bn 26.39 8.45 55.82 Bn
2 SBUX Starbucks Corp 95.51 Bn 51.45 2.57 26.61 Bn
3 CMG Chipotle Mexican Grill Inc 50.94 Bn 33.15 4.32 4.98 Bn
4 YUM Yum Brands Inc 43.17 Bn 29.83 5.36 11.55 Bn
5 QSR Restaurant Brands International Inc. 22.43 Bn 24.33 2.42 15.64 Bn
6 DRI Darden Restaurants Inc 21.91 Bn 19.91 1.77 6.16 Bn
7 YUMC Yum China Holdings, Inc. 18.12 Bn 20.05 1.57 1.84 Bn
8 DPZ Dominos Pizza Inc 14.57 Bn 24.72 3.01 5.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.00 2.05
EV to Cash from Ops. EV to Cash from Ops. 0.00 16.57
EV to Debt EV to Debt 0.00 4.75
EV to EBIT EV to EBIT 0.00 3.45
EV to EBITDA EV to EBITDA 0.00 9.76
EV to Free Cash Flow [EV/FCF] EV to Free Cash Flow [EV/FCF] 0.00 29.06
EV to Market Cap EV to Market Cap 0.00 6.55
EV to Revenue EV to Revenue 0.00 2.40
Price to Book Value [P/B] P/B 0.25 -1.40
Price to Earnings [P/E] P/E 0.87 13.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -9.56
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 18.72
Dividend per Basic Share Div per Share (Qtr) 0.00 0.84
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 30.41
Interest Coverage Interest Coverage 0.00 -86.85
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -24.56
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.00 35.50
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.72
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.00 -564.81
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 25.78
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.00 -507.68
EBT Growth (1y) % EBT 1y % (Qtr) 0.00 -41.98
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 -126.51
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 5,724.78
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 23.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.99
Cash Payout Ratio Cash Payout Ratio 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 3.90 0.78
Current Ratio Curr Ratio (Qtr) 4.22 1.47
Debt to Equity Ratio Debt/Equity (Qtr) 0.12 0.05
Interest Cover Ratio Interest Cover Ratio 0.00 -86.85
Times Interest Earned Times Interest Earned 0.00 -86.85
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 7.71
EBIT Margin % EBIT Margin % (Qtr) 0.00 -2.27
EBT Margin % EBT Margin % (Qtr) 0.00 -1.97
Gross Margin % Gross Margin % (Qtr) 0.00 34.04
Net Profit Margin % Net Margin % (Qtr) 0.00 -3.69