Coincheck Group N.V. (NASDAQ: CNCK)

Sector: Financial Services Industry: Capital Markets CIK: 0001913847
Market Cap 122.02 Mn
P/B 1.33
P/E 759.91
P/S 0.04
ROIC (Qtr) -4.32
Div Yield % 0.00
Rev 1y % (Qtr) 17.06
Total Debt (Qtr) 353.64 Mn
Debt/Equity (Qtr) 3.86
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About

Investment thesis

Bull case

  • Robust tangible asset base of 780.03M provides 16.45x coverage of working capital 47.41M, indicating strong operational backing.
  • Cash reserves of 68.38M provide solid 8.82x coverage of other non-current liabilities 7.75M, indicating strong liquidity.
  • Short-term investments of 324.51M provide healthy 6.84x coverage of working capital 47.41M, indicating strong liquidity.
  • Cash position of 68.38M represents healthy 1.44x of working capital 47.41M, demonstrating strong operational liquidity.
  • Cash reserves of 68.38M provide comfortable 8.96x coverage of tax obligations 7.63M, showing strong fiscal management.

Bear case

  • Operating cash flow of 7.19M barely covers its investment activities of (7.17M), with a coverage ratio of -1, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Short-term investments of 324.51M significantly exceed cash reserves of 68.38M, which is 4.75x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of 7.19M shows concerning coverage of stock compensation expenses of 6.01M, with a 1.20 ratio indicating potential earnings quality issues.
  • Free cash flow of 1.59M provides weak coverage of capital expenditures of 5.60M, with a 0.28 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 7.19M provides minimal 0.86x coverage of tax expenses of 8.38M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Capital Markets
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GS Goldman Sachs Group Inc 370.13 Bn 100.44 11.31 911.32 Bn
2 MS Morgan Stanley 303.66 Bn 21.50 5.16 353.12 Bn
3 BMNR Bitmine Immersion Technologies, Inc. 146.52 Bn -30.07 20,386.82 0.00 Bn
4 SCHW Schwab Charles Corp 111.50 Bn 193.92 27.50 27.59 Bn
5 HOOD Robinhood Markets, Inc. 66.47 Bn 30.30 15.81 0.00 Bn
6 LPLA LPL Financial Holdings Inc. 31.32 Bn 164.38 7.18 7.52 Bn
7 IBKR Interactive Brokers Group, Inc. 31.19 Bn 45.81 6.61 28.43 Bn
8 CRCL Circle Internet Group, Inc. 29.31 Bn 186.73 17.33 0.15 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.58 1.16
EV to Cash from Ops. EV/CFO -66.37 1.57
EV to Debt EV to Debt -1.35 18.65
EV to EBIT EV/EBIT -43.86 10.06
EV to EBITDA EV/EBITDA -85.84 19.26
EV to Free Cash Flow [EV/FCF] EV/FCF -299.74 17.36
EV to Market Cap EV to Market Cap -3.91 -1.88
EV to Revenue EV/Rev -0.16 293.27
Price to Book Value [P/B] P/B 1.33 4.40
Price to Earnings [P/E] P/E 759.91 1.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.90
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 7.38
Dividend per Basic Share Div per Share (Qtr) 0.00 0.69
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -9.01
Interest Coverage Int. cover (Qtr) 4.63 -165.39
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 9.88 -12,128.19
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -15.61 1,713.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 3.31
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 100.25 -2,037.55
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -59.71 -3,959.17
EBIT Growth (1y) % EBIT 1y % (Qtr) 114.95 734.43
EBT Growth (1y) % EBT 1y % (Qtr) 111.67 845.20
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 29.40
FCF Growth (1y) % FCF 1y % (Qtr) -86.69 -3,403.50
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.35 55.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.52
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.08
Cash Ratio Cash Ratio (Qtr) 0.10 1.46
Current Ratio Curr Ratio (Qtr) 1.07 2.97
Debt to Equity Ratio Debt/Equity (Qtr) 3.86 1.45
Interest Cover Ratio Int Coverage (Qtr) 4.63 -165.39
Times Interest Earned Times Interest Earned (Qtr) 4.63 -165.39
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.50 -959.98
EBIT Margin % EBIT Margin % (Qtr) 55.55 -999.31
EBT Margin % EBT Margin % (Qtr) 0.28 -982.34
Gross Margin % Gross Margin % (Qtr) 2.90 53.08
Net Profit Margin % Net Margin % (Qtr) 0.00 -988.47