Creative Realities, Inc. (NASDAQ: CREX)

Sector: Technology Industry: Software - Application CIK: 0001356093
Market Cap 33.02 Mn
P/B 1.51
P/E -3.61
P/S 0.74
ROIC (Qtr) -20.42
Div Yield % 0.00
Rev 1y % (Qtr) -26.97
Total Debt (Qtr) 23.97 Mn
Debt/Equity (Qtr) 1.09

About

Creative Realities, Inc., also known as CREX, operates in the digital marketing industry, providing interactive marketing technologies and solutions to its clients. The company's primary business activities involve developing and licensing software technology, as well as providing services related to its proprietary platform architectures and data tracking technology. CREX generates revenue through the sale of its software and services, as well as through licensing fees from its customers. The company's main offerings include its proprietary platform...

Read more

Price action

Investment thesis

Bull case

  • Tangible assets of 19.43M provide exceptional 7.87x coverage of deferred revenue 2.47M, showing strong service capability backing.
  • Robust tangible asset base of 19.43M provides 36.94x coverage of working capital 526000, indicating strong operational backing.
  • Cash position of 314000 represents healthy 0.60x of working capital 526000, demonstrating strong operational liquidity.

Bear case

  • Operating cash flow of (2.20M) barely covers its investment activities of (2.47M), with a coverage ratio of 0.89, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 314000 against inventory of 4.30M, the 0.07 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of (2.20M) provides insufficient coverage of deferred revenue obligations of 2.47M, which is -0.89x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (2.20M) shows concerning coverage of stock compensation expenses of 1.68M, with a -1.31 ratio indicating potential earnings quality issues.
  • High receivables of 11.08M relative to inventory of 4.30M (2.57 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.89 2.65
EV to Cash from Ops. EV/CFO -24.72 13.37
EV to Debt EV to Debt 2.27 57.69
EV to EBIT EV/EBIT -7.15 19.12
EV to EBITDA EV/EBITDA -10.41 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF -11.65 14.69
EV to Market Cap EV to Market Cap 1.65 -92.28
EV to Revenue EV/Rev 1.23 4.60
Price to Book Value [P/B] P/B 1.51 4.26
Price to Earnings [P/E] P/E -3.61 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) -4.59 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 22.53 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -63.82 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -415.42 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -171.10 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -343.23 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -1,041.93 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) -1,187.50 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -195.89 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -28.22 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.72 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.02 3.75
Current Ratio Curr Ratio (Qtr) 1.03 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 1.09 0.17
Interest Cover Ratio Int Coverage (Qtr) -4.59 -52.32
Times Interest Earned Times Interest Earned (Qtr) -4.59 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -6.30 -100.06
EBIT Margin % EBIT Margin % (Qtr) -17.19 -164.24
EBT Margin % EBT Margin % (Qtr) -20.93 -116.94
Gross Margin % Gross Margin % (Qtr) 43.10 58.20
Net Profit Margin % Net Margin % (Qtr) -20.60 -121.65