Cvd Equipment Corp (NASDAQ: CVV)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0000766792
Market Cap 37.00 Mn
P/B 1.44
P/E -200.00
P/S 1.31
ROIC (Qtr) -2.06
Div Yield % 0.00
Rev 1y % (Qtr) -9.59
Total Debt (Qtr) 203,000.00
Debt/Equity (Qtr) 0.01
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About

CVD Equipment Corporation (CVV) is a New York-based company that has been a significant player in the advanced materials markets for over 40 years, providing chemical vapor deposition, physical vapor transport, and thermal process equipment. The company has its headquarters in Central Islip, New York, with an additional location in Saugerties, New York. CVD Equipment Corporation operates in the advanced materials industry, generating revenue through its three reportable operating segments: CVD Equipment, SDC, and CVD Materials. The CVD Equipment...

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Investment thesis

Bull case

  • Healthy cash reserves of 8.36M provide 92.87x coverage of short-term debt 90000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 29.77M provides 146.67x coverage of total debt 203000, indicating robust asset backing and low credit risk.
  • Robust free cash flow of (1.51M) exceeds capital expenditure of (314000) by 4.81x, indicating strong organic growth funding capability.
  • Tangible assets of 29.77M provide exceptional 41.13x coverage of deferred revenue 724000, showing strong service capability backing.
  • Operating cash flow of (1.82M) fully covers other non-current liabilities (724000) by 2.52x, showing strong long-term stability.

Bear case

  • Operating cash flow of (1.82M) barely covers its investment activities of 263000, with a coverage ratio of -6.94, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 263000 provide weak support for R&D spending of 2.63M, which is 0.10x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 8.36M provide limited coverage of acquisition spending of (51000), which is -163.88x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (1.82M) provides insufficient coverage of deferred revenue obligations of 724000, which is -2.52x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (1.82M) shows concerning coverage of stock compensation expenses of 986000, with a -1.85 ratio indicating potential earnings quality issues.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.01 2.28
EV to Cash from Ops. EV/CFO -16.56 37.14
EV to Debt EV to Debt 148.78 34.39
EV to EBIT EV/EBIT -222.07 27.71
EV to EBITDA EV/EBITDA 153.31 25.34
EV to Free Cash Flow [EV/FCF] EV/FCF -20.00 133.36
EV to Market Cap EV to Market Cap 0.82 1.04
EV to Revenue EV/Rev 1.07 39.88
Price to Book Value [P/B] P/B 1.44 6.22
Price to Earnings [P/E] P/E -200.00 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.57
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 15.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 82.53
Interest Coverage Int. cover (Qtr) -9.71 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 17.16 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -16.46 118.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 10.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 96.08 -283.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 104.70 -36.87
EBIT Growth (1y) % EBIT 1y % (Qtr) 96.84 -80.72
EBT Growth (1y) % EBT 1y % (Qtr) 96.53 -120.93
EPS Growth (1y) % EPS 1y % (Qtr) 96.88 -39.22
FCF Growth (1y) % FCF 1y % (Qtr) 58.08 85.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 118.80 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.95 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.10
Cash Ratio Cash Ratio (Qtr) 2.15 3.01
Current Ratio Curr Ratio (Qtr) 4.76 4.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.38
Interest Cover Ratio Int Coverage (Qtr) -9.71 12.34
Times Interest Earned Times Interest Earned (Qtr) -9.71 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.10 -7,291.27
EBIT Margin % EBIT Margin % (Qtr) -0.48 -7,413.30
EBT Margin % EBT Margin % (Qtr) -0.53 -9,015.79
Gross Margin % Gross Margin % (Qtr) 29.10 -32.61
Net Profit Margin % Net Margin % (Qtr) -0.70 -7,962.06