DeFi Development Corp. (NASDAQ: DFDV)

Sector: Technology Industry: Software - Infrastructure CIK: 0001805526
Market Cap 142.22 Mn
P/B 0.58
P/E 2.03
P/S 18.89
ROIC (Qtr) 24.27
Div Yield % 0.00
Rev 1y % (Qtr) 647.17
Total Debt (Qtr) 202.04 Mn
Debt/Equity (Qtr) 0.83

About

Janover Inc., a technology platform with the ticker symbol JNVR, operates in the industry of connecting commercial mortgage and small business borrowers with lenders. The company's platform leverages artificial intelligence (AI) to match borrowers with the most suitable loan options, while also providing a human touch through its capital markets advisors. Janover's business model is centered around earning a transaction fee for every loan that closes through its platform. Janover's primary business activities revolve around its B2B fintech marketplace,...

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Price action

Investment thesis

Bull case

  • Tangible assets of 475.97M provide exceptional 4138.90x coverage of deferred revenue 115000, showing strong service capability backing.
  • Long-term investments of 301.47M provide solid 2.29x coverage of long-term debt 131.44M, indicating strategic financial planning.
  • Short-term investments of 153.62M provide solid 16.29x coverage of other current liabilities 9.43M, indicating strong liquidity.
  • Robust tangible asset base of 475.97M provides 5.36x coverage of working capital 88.86M, indicating strong operational backing.
  • Strong free cash flow of (7.23M) provides 5.78x coverage of acquisition spending (1.25M), indicating disciplined M&A strategy.

Bear case

  • Operating cash flow of (7.22M) barely covers its investment activities of (236.32M), with a coverage ratio of 0.03, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (236.32M) provide weak support for R&D spending of 927241, which is -254.86x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 8.80M provide limited coverage of acquisition spending of (1.25M), which is -7.04x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (7.22M) provides insufficient coverage of deferred revenue obligations of 115000, which is -62.79x, raising concerns about future service delivery capabilities.
  • Short-term investments of 153.62M significantly exceed cash reserves of 8.80M, which is 17.46x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.34 2.69
EV to Cash from Ops. EV/CFO -22.36 28.91
EV to Debt EV to Debt 0.80 19.83
EV to EBIT EV/EBIT 1.74 -9.95
EV to EBITDA EV/EBITDA 1.83 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF -22.33 26.09
EV to Market Cap EV to Market Cap 1.14 0.36
EV to Revenue EV/Rev 21.45 -9.34
Price to Book Value [P/B] P/B 0.58 3.88
Price to Earnings [P/E] P/E 2.03 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) 25.08 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 73.82 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 217.91 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 2,239.39 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 2,702.65 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 2,822.61 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 2,714.08 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 1,021.04 67.50
FCF Growth (1y) % FCF 1y % (Qtr) -146.60 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 311.67 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.10 1.22
Current Ratio Curr Ratio (Qtr) 2.04 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.83 -0.96
Interest Cover Ratio Int Coverage (Qtr) 25.08 -14.20
Times Interest Earned Times Interest Earned (Qtr) 25.08 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 1,245.90 -548.16
EBIT Margin % EBIT Margin % (Qtr) 1,236.07 -199.84
EBT Margin % EBT Margin % (Qtr) 1,186.79 -607.20
Gross Margin % Gross Margin % (Qtr) 98.30 51.88
Net Profit Margin % Net Margin % (Qtr) 932.60 -610.00