Crexendo, Inc. (NASDAQ: CXDO)

Sector: Communication Services Industry: Telecom Services CIK: 0001075736
Market Cap 175.27 Mn
P/B 2.86
P/E 40.20
P/S 2.64
ROIC (Qtr) 6.63
Div Yield % 0.00
Rev 1y % (Qtr) 11.97
Total Debt (Qtr) 1.38 Mn
Debt/Equity (Qtr) 0.02
Add ratio to table...

About

Investment thesis

Bull case

  • Strong operating cash flow of 9.13M provides robust 6.62x coverage of total debt 1.38M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 28.57M provide 39.52x coverage of short-term debt 723000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 47.86M provides 34.73x coverage of total debt 1.38M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 9.13M provides exceptional 314.72x coverage of interest expenses 29000, showing strong debt service capability.
  • Robust free cash flow of 9.08M exceeds capital expenditure of 45000 by 201.82x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 9.13M barely covers its investment activities of (45000), with a coverage ratio of -202.82, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (45000) provide weak support for R&D spending of 5.88M, which is -0.01x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 5.19M relative to inventory of 640000 (8.12 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 9.13M shows concerning coverage of stock compensation expenses of 2.96M, with a 3.08 ratio indicating potential earnings quality issues.
  • Free cash flow of 9.08M represents just -17.74x of debt issuance (512000), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Income Tax Authority, Name Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Telecom Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMUS T-Mobile US, Inc. 247.58 Bn 22.52 2.80 118.74 Bn
2 T At&T Inc. 210.50 Bn 12.86 1.15 155.04 Bn
3 VZ Verizon Communications Inc 202.20 Bn 11.00 1.54 181.64 Bn
4 CMCSA Comcast Corp 180.83 Bn 58.43 5.08 98.94 Bn
5 VOD Vodafone Group Public Ltd Co 44.88 Bn 3.20 0.62 60.54 Bn
6 CHT Chunghwa Telecom Co Ltd 33.41 Bn 26.87 4.32 1.20 Bn
7 SATS EchoStar CORP 32.60 Bn -2.52 2.15 30.58 Bn
8 CHTR Charter Communications, Inc. /Mo/ 32.03 Bn 6.42 0.58 96.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.02 0.87
EV to Cash from Ops. EV/CFO 16.81 7.73
EV to Debt EV to Debt 111.35 40.31
EV to EBIT EV/EBIT 33.10 2.24
EV to EBITDA EV/EBITDA 20.50 2.53
EV to Free Cash Flow [EV/FCF] EV/FCF 16.89 33.34
EV to Market Cap EV to Market Cap 0.88 1.71
EV to Revenue EV/Rev 2.31 5.12
Price to Book Value [P/B] P/B 2.86 2.16
Price to Earnings [P/E] P/E 40.20 76.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.17
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.79
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.04
Interest Coverage Int. cover (Qtr) 159.86 -2.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 19.27
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 84.93 61.85
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -2.07
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 247.39 373.65
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 62.46 192.47
EBIT Growth (1y) % EBIT 1y % (Qtr) 235.21 814.56
EBT Growth (1y) % EBT 1y % (Qtr) 241.77 -29.03
EPS Growth (1y) % EPS 1y % (Qtr) 150.00 141.81
FCF Growth (1y) % FCF 1y % (Qtr) 35.17 78.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.53 -10.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.87 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 2.10 0.68
Current Ratio Curr Ratio (Qtr) 2.89 1.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 -0.46
Interest Cover Ratio Int Coverage (Qtr) 159.86 -2.53
Times Interest Earned Times Interest Earned (Qtr) 159.86 -2.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 12.00 46.49
EBIT Margin % EBIT Margin % (Qtr) 6.99 -51.60
EBT Margin % EBT Margin % (Qtr) 6.94 27.73
Gross Margin % Gross Margin % (Qtr) 63.10 55.49
Net Profit Margin % Net Margin % (Qtr) 6.60 26.33