Eastern International Ltd. (NASDAQ: ELOG)

Sector: Industrials Industry: Integrated Freight & Logistics CIK: 0002013320
Market Cap 11.64 Mn
P/B 0.74
P/E 6.41
P/S 0.25
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 5.99 Mn
Debt/Equity (Qtr) 0.38
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About

Investment thesis

Bull case

  • Strong tangible asset base of 33.57M provides 5.61x coverage of total debt 5.99M, indicating robust asset backing and low credit risk.
  • Tangible assets of 33.57M provide exceptional 740.02x coverage of deferred revenue 45368, showing strong service capability backing.
  • Robust free cash flow of 386569 exceeds capital expenditure of 128916 by 3x, indicating strong organic growth funding capability.
  • Operating cash flow of 515485 provides strong 11.36x coverage of deferred revenue 45368, indicating service delivery capability.
  • Retained earnings of 3.71M provide full 3.74x coverage of long-term debt 990820, indicating strong internal capital position.

Bear case

  • Operating cash flow of 515485 barely covers its investment activities of (128916), with a coverage ratio of -4, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 515485 provides minimal 1.17x coverage of tax expenses of 439903, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Tax assets of 26966 provide limited offset against tax liabilities of 584748, which is 0.05x, indicating potential future cash flow pressure from tax obligations.
  • Retained earnings of 3.71M provide limited buffer against comprehensive income items of (551967), which is -6.72x, indicating elevated exposure to market risks.
  • Operating cash flow of 515485 is outpaced by equity issuance of 5.73M (0.09 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Integrated Freight & Logistics
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 FDX Fedex Corp 99.67 Bn 20.28 1.11 37.77 Bn
2 UPS United Parcel Service Inc 98.11 Bn 17.61 1.11 28.59 Bn
3 JBHT Hunt J B Transport Services Inc 28.29 Bn 145.14 7.91 1.60 Bn
4 EXPD Expeditors International Of Washington Inc 22.29 Bn 27.40 2.13 0.56 Bn
5 CHRW C. H. Robinson Worldwide, Inc. 21.34 Bn 36.35 1.31 1.43 Bn
6 ZTO ZTO Express (Cayman) Inc. 20.15 Bn 16.23 3.02 1.74 Bn
7 GXO GXO Logistics, Inc. 7.46 Bn 83.79 0.58 5.50 Bn
8 LSTR Landstar System Inc 5.11 Bn 28.60 1.06 0.13 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.48 1.04
EV to Cash from Ops. EV/CFO 31.44 -0.78
EV to Debt EV to Debt 2.71 -1.98
EV to EBIT EV/EBIT 6.47 10.54
EV to EBITDA EV/EBITDA 6.46 9.04
EV to Free Cash Flow [EV/FCF] EV/FCF 41.93 -2.76
EV to Market Cap EV to Market Cap 1.39 0.62
EV to Revenue EV/Rev 0.35 -0.31
Price to Book Value [P/B] P/B 0.74 4.96
Price to Earnings [P/E] P/E 6.41 15.82
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.95
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 14.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.73
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 11.81
Interest Coverage Interest Coverage 10.01 -430.42
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 23.22 -2,938.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 3,053.95 139.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.23
EBIAT Growth (1y) % EBIAT Growth (1y) % 69.94 -442.31
EBITDA Growth (1y) % EBITDA Growth (1y) % 34.44 -224.47
EBIT Growth (1y) % EBIT Growth (1y) % 26.95 -367.92
EBT Growth (1y) % EBT Growth (1y) % 22.86 -191.62
EPS Growth (1y) % EPS Growth (1y) % 54.55 -974.30
FCF Growth (1y) % FCF Growth (1y) % 114.31 -67.17
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 3.05 1.66
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 1.37 1.29
Cash Payout Ratio Cash Payout Ratio 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.35 0.97
Current Ratio Curr Ratio (Qtr) 1.77 3.22
Debt to Equity Ratio Debt/Equity (Qtr) 0.38 1.06
Interest Cover Ratio Interest Cover Ratio 10.01 -430.42
Times Interest Earned Times Interest Earned 10.01 -430.42
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 5.70 17.62
EBIT Margin % EBIT Margin % 5.45 24.68
EBT Margin % EBT Margin % 4.91 18.38
Gross Margin % Gross Margin % 13.00 20.25
Net Profit Margin % Net Profit Margin % 3.90 31.04