ESH Acquisition Corp. (NASDAQ: ESHA)

Sector: Financial Services Industry: Shell Companies CIK: 0001918661
Market Cap 36.00 Mn
P/B -15.57
P/E -25.31
P/S 0.00
ROIC (Qtr) 143.54
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

ESH Acquisition Corp., also known as ESH, is a company that operates in the blank check industry. This type of company is formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses or entities that it has not yet identified. ESH was incorporated as a Delaware corporation on November 17, 2021. The company's main business activities involve seeking out a target business to merge with, acquire, or form a partnership with, using...

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Investment thesis

Bull case

  • Tangible assets of 8.83M provide robust 5.94x coverage of other current liabilities 1.49M, indicating strong asset backing.
  • Retained earnings of (2.31M) represent substantial 1x of equity (2.31M), indicating strong internal capital generation.
  • Operating cash flow of (2.64M) exceeds working capital of (2.31M) by 1.14x, showing strong operational efficiency.
  • Tangible assets of 8.83M provide robust 3.41x coverage of current liabilities 2.59M, showing strong asset backing.

Bear case

  • Operating cash flow of (2.64M) barely covers its investment activities of 116.72M, with a coverage ratio of -0.02, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (2.64M) provides minimal -8.74x coverage of tax expenses of 302363, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • High financing cash flow of (115.49M) relative to working capital of (2.31M), which is 50.04x suggests concerning dependence on external funding for operational needs.
  • Free cash flow of (2.64M) represents just -13.21x of debt issuance 200000, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of (2.64M) barely covers operating expenses of 39200 with a -67.38 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Shell Companies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ANSC Agriculture & Natural Solutions Acquisition Corp 493.77 Mn 56.15 0.00 0.84 Mn
2 CCIX Churchill Capital Corp IX/Cayman 395.47 Mn 46.22 0.00 0.00 Mn
3 ALF Centurion Acquisition Corp. 394.73 Mn 32.55 0.00 0.01 Mn
4 GPAT GP-Act III Acquisition Corp. 389.33 Mn 31.65 0.00 0.40 Mn
5 HYAC Haymaker Acquisition Corp. 4 338.26 Mn 38.17 0.00 1.88 Mn
6 SIMA SIM Acquisition Corp. I 328.57 Mn 35.70 0.00 0.00 Mn
7 AFJK Aimei Health Technology Co., Ltd. 303.65 Mn 216.00 0.00 1.66 Mn
8 GRAF Graf Global Corp. 300.58 Mn 34.68 0.00 0.00 Mn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.02 0.95
EV to Cash from Ops. EV/CFO -13.42 18.30
EV to Debt EV to Debt 0.00 125,153.88
EV to EBIT EV/EBIT -31.64 34.06
EV to EBITDA EV/EBITDA -13.64 -165.45
EV to Free Cash Flow [EV/FCF] EV/FCF -13.42 18.30
EV to Market Cap EV to Market Cap 0.98 0.63
EV to Revenue EV to Revenue 0.00 0.00
Price to Book Value [P/B] P/B -15.57 -20.50
Price to Earnings [P/E] P/E -25.31 -125.27
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.04
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.00
Interest Coverage Interest Coverage 0.00 2.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 0.00
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -91.22 410.95
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -133.43 282.79
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -216.27 -126.98
EBIT Growth (1y) % EBIT 1y % (Qtr) -120.44 304.32
EBT Growth (1y) % EBT 1y % (Qtr) -120.44 303.65
EPS Growth (1y) % EPS 1y % (Qtr) -260.00 956.13
FCF Growth (1y) % FCF 1y % (Qtr) -107.54 -37.62
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 0.00
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.00
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.05 52.04
Current Ratio Curr Ratio (Qtr) 0.11 4.89
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -0.27
Interest Cover Ratio Interest Cover Ratio 0.00 2.94
Times Interest Earned Times Interest Earned 0.00 2.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 0.00
EBIT Margin % EBIT Margin % 0.00 0.00
EBT Margin % EBT Margin % 0.00 0.00
Gross Margin % Gross Margin % 0.00 0.00
Net Profit Margin % Net Profit Margin % 0.00 0.00