Empery Digital Inc. (NASDAQ: EMPD)

Sector: Consumer Cyclical Industry: Auto Manufacturers CIK: 0001829794
Market Cap 183.22 Mn
P/B 0.42
P/E -3.97
P/S 69.82
ROIC (Qtr) -18.28
Div Yield % 0.00
Rev 1y % (Qtr) -81.57
Total Debt (Qtr) 50.89 Mn
Debt/Equity (Qtr) 0.12

About

Volcon, Inc., a company that operates in the powersports industry, is known for its all-electric, off-road vehicles. Its primary products include the Grunt and Runt motorcycles, the Stag UTV, and the Brat eBike. These vehicles are designed for off-road use only and are not legal for on-road use without homologation by customers. Founded in the United States, Volcon's main business activities revolve around the development, manufacturing, and sale of electric two and four-wheel motorcycles and utility terrain vehicles (UTVs), along with a line of...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 492.26M provides 9.67x coverage of total debt 50.89M, indicating robust asset backing and low credit risk.
  • Long-term investments of 465.53M provide solid 908.76x coverage of long-term debt 512265, indicating strategic financial planning.
  • Tangible assets of 492.26M provide robust 177.59x coverage of other current liabilities 2.77M, indicating strong asset backing.
  • Strong cash position of 18.92M provides 6.83x coverage of other current liabilities 2.77M, indicating excellent liquidity.
  • Cash reserves of 18.92M exceed inventory value of 779941 by 24.26x, indicating strong liquidity and inventory management.

Bear case

  • Operating cash flow of (18.62M) barely covers its investment activities of (453.86M), with a coverage ratio of 0.04, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (453.86M) provide weak support for R&D spending of 1.31M, which is -346.24x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (18.62M) shows concerning coverage of stock compensation expenses of 14.87M, with a -1.25 ratio indicating potential earnings quality issues.
  • High receivables of 1.58M relative to inventory of 779941 (2.03 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (18.85M) provides weak coverage of capital expenditures of 226664, with a -83.15 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Auto Manufacturers
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TSLA Tesla, Inc. 1,386.72 Bn 263.09 14.50 7.70 Bn
2 TM Toyota Motor Corp/ 286.80 Bn 9.26 0.87 287.20 Bn
3 GM General Motors Co 81.08 Bn 25.50 0.44 130.28 Bn
4 RACE Ferrari N.V. 59.53 Bn 31.60 7.15 3.38 Bn
5 F Ford Motor Co 55.12 Bn 17.49 0.30 161.94 Bn
6 HMC Honda Motor Co Ltd 42.13 Bn 9.65 0.29 88.09 Bn
7 STLA Stellantis N.V. 29.73 Bn -10.57 0.17 -
8 XPEV Xpeng Inc. 17.74 Bn -44.29 1.79 4.87 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.35 1.20
EV to Cash from Ops. EV/CFO -9.23 5.88
EV to Debt EV to Debt 3.38 28.94
EV to EBIT EV/EBIT -3.77 11.38
EV to EBITDA EV/EBITDA -3.80 7.73
EV to Free Cash Flow [EV/FCF] EV/FCF -9.12 8.79
EV to Market Cap EV to Market Cap 0.94 304,683.06
EV to Revenue EV/Rev 65.51 16.98
Price to Book Value [P/B] P/B 0.42 3.04
Price to Earnings [P/E] P/E -3.97 9.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.59
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 6.04
Dividend per Basic Share Div per Share (Qtr) 0.00 0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) -81.60 8.74
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 41.59 -59.34
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 220.07 62.23
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.34
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -6.86 -1,057.18
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -45.49 -19.82
EBIT Growth (1y) % EBIT 1y % (Qtr) -6.86 -1,011.94
EBT Growth (1y) % EBT 1y % (Qtr) -5.55 -216.80
EPS Growth (1y) % EPS 1y % (Qtr) -99.95 -59.11
FCF Growth (1y) % FCF 1y % (Qtr) 25.88 -21.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 85.80 -10.92
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.33
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.35 0.40
Current Ratio Curr Ratio (Qtr) 0.47 1.21
Debt to Equity Ratio Debt/Equity (Qtr) 0.12 0.99
Interest Cover Ratio Int Coverage (Qtr) -81.60 8.74
Times Interest Earned Times Interest Earned (Qtr) -81.60 8.74
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1,706.90 -2,589.89
EBIT Margin % EBIT Margin % (Qtr) -1,736.70 -104,371.67
EBT Margin % EBT Margin % (Qtr) -1,757.98 -3,156.67
Gross Margin % Gross Margin % (Qtr) -92.90 -649.09
Net Profit Margin % Net Margin % (Qtr) -1,758.00 -3,158.82