Chicago Rivet & Machine Co (NYSE: CVR)

Sector: Industrials Industry: Tools & Accessories CIK: 0000019871
Market Cap 13.10 Mn
P/B 0.45
P/E 5.76
P/S 0.36
ROIC (Qtr) -18.35
Div Yield % 8.43
Rev 1y % (Qtr) 5.60
Total Debt (Qtr) 948,344.00
Debt/Equity (Qtr) 0.05

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 1.68M provide 16.37x coverage of short-term debt 102811, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 24.03M provides 25.34x coverage of total debt 948344, indicating robust asset backing and low credit risk.
  • Robust free cash flow of (863062) exceeds capital expenditure of (541365) by 1.59x, indicating strong organic growth funding capability.
  • Tangible assets of 24.03M provide exceptional 170.46x coverage of deferred revenue 140958, showing strong service capability backing.
  • Free cash flow of (863062) provides excellent 7.44x coverage of dividends (115935), indicating sustainable shareholder returns.

Bear case

  • Operating cash flow of (1.40M) barely covers its investment activities of 1.04M, with a coverage ratio of -1.35, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 1.68M against inventory of 6.35M, the 0.27 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of (1.40M) provides insufficient coverage of deferred revenue obligations of 140958, which is -9.96x, raising concerns about future service delivery capabilities.
  • Operating cash flow of (1.40M) provides minimal -16.24x coverage of tax expenses of 86487, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (3.45M) show weak coverage of depreciation charges of 1.17M, with a -2.94 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Tools & Accessories
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SNA Snap-on Inc 20.19 Bn 30.93 5.05 1.27 Bn
2 LECO Lincoln Electric Holdings Inc 19.47 Bn 86.76 6.42 1.24 Bn
3 RBC RBC Bearings INC 17.20 Bn 64.04 9.61 1.05 Bn
4 SWK Stanley Black & Decker, Inc. 13.10 Bn 13.72 1.16 6.61 Bn
5 TTC Toro Co 10.73 Bn 40.62 4.32 1.04 Bn
6 TKR Timken Co 7.62 Bn 25.63 1.68 2.21 Bn
7 KMT Kennametal Inc 3.10 Bn 28.08 1.52 0.64 Bn
8 HLMN Hillman Solutions Corp. 1.92 Bn 51.25 1.25 0.78 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.17 2.01
EV to Cash from Ops. EV/CFO 1.24 24.93
EV to Debt EV to Debt 4.37 8.39
EV to EBIT EV/EBIT 1.59 24.47
EV to EBITDA EV/EBITDA 1.10 17.60
EV to Free Cash Flow [EV/FCF] EV/FCF 2.11 35.32
EV to Market Cap EV to Market Cap 0.32 1.11
EV to Revenue EV/Rev 0.11 3.42
Price to Book Value [P/B] P/B 0.45 5.86
Price to Earnings [P/E] P/E 5.76 36.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -30.53 -1.46
Dividend Payout Ratio % Div Payout % (Qtr) -3.30 33.38
Dividend per Basic Share Div per Share (Qtr) 0.12 1.81
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -13.44 30.74
Interest Coverage Interest Coverage 0.00 7.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 174.92 18.88
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -22.16 10.48
Dividend Growth (1y) % Div 1y % (Qtr) -70.00 -11.72
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.17 58.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -9.12 -4.11
EBIT Growth (1y) % EBIT 1y % (Qtr) 4.82 77.69
EBT Growth (1y) % EBT 1y % (Qtr) 4.82 236.46
EPS Growth (1y) % EPS 1y % (Qtr) 0.27 93.96
FCF Growth (1y) % FCF 1y % (Qtr) -5,805.72 -577.35
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 4.92 0.72
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.08 0.84
Cash Payout Ratio Cash Payout (Qtr) -0.06 0.18
Cash Ratio Cash Ratio (Qtr) 0.74 0.44
Current Ratio Curr Ratio (Qtr) 5.98 2.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.05 0.52
Interest Cover Ratio Interest Cover Ratio 0.00 7.86
Times Interest Earned Times Interest Earned 0.00 7.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -8.80 14.56
EBIT Margin % EBIT Margin % (Qtr) -13.28 10.14
EBT Margin % EBT Margin % (Qtr) -13.28 8.34
Gross Margin % Gross Margin % (Qtr) 8.30 33.75
Net Profit Margin % Net Margin % (Qtr) -13.60 6.08