Fatpipe Inc/UT (NASDAQ: FATN)

Sector: Technology Industry: Software - Infrastructure CIK: 0001993400
Market Cap 25.51 Mn
P/B 1.21
P/E 59.67
P/S 1.72
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 29.83
Total Debt (Qtr) 5.79 Mn
Debt/Equity (Qtr) 0.27
Add ratio to table...

About

Investment thesis

Bull case

  • Healthy cash reserves of 6.16M provide 7.60x coverage of short-term debt 811451, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 31.61M provides 5.46x coverage of total debt 5.79M, indicating robust asset backing and low credit risk.
  • Tangible assets of 31.61M provide exceptional 28.78x coverage of deferred revenue 1.10M, showing strong service capability backing.
  • Robust tangible asset base of 31.61M provides 3.03x coverage of working capital 10.45M, indicating strong operational backing.
  • Retained earnings of 12.11M provide full 2.43x coverage of long-term debt 4.98M, indicating strong internal capital position.

Bear case

  • High receivables of 10.08M relative to inventory of 167348 (60.26 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 1.10M, which is 0x, raising concerns about future service delivery capabilities.

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 2,948.93 Bn 24.73 9.65 57.61 Bn
2 ORCL Oracle Corp 734.55 Bn 67.24 19.76 124.39 Bn
3 PLTR Palantir Technologies Inc. 313.28 Bn 192.78 70.00 0.23 Bn
4 PANW Palo Alto Networks Inc 109.38 Bn 97.90 11.45 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 102.48 Bn -326.20 22.45 0.82 Bn
6 SNPS Synopsys Inc 69.14 Bn 51.90 9.80 14.29 Bn
7 NET Cloudflare, Inc. 66.52 Bn -645.60 33.04 3.50 Bn
8 FTNT Fortinet, Inc. 62.73 Bn 33.48 9.57 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.80 2.10
EV to Cash from Ops. EV/CFO -63.40 3.92
EV to Debt EV to Debt 4.47 -2.43
EV to EBIT EV/EBIT 16.16 11.57
EV to EBITDA EV/EBITDA 14.19 18.19
EV to Free Cash Flow [EV/FCF] EV/FCF -57.75 19.98
EV to Market Cap EV to Market Cap 1.02 1.27
EV to Revenue EV/Rev 1.75 29.29
Price to Book Value [P/B] P/B 1.21 4.97
Price to Earnings [P/E] P/E 59.67 -12.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.21
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.11
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.67
Interest Coverage Int. cover (Qtr) 0.00 -16.04
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -403.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.00 223.80
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.00 585.97
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 5.89
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.00 27.96
EBT Growth (1y) % EBT 1y % (Qtr) 0.00 20.61
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 144.77
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 50.30
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 45.98
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.65
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.01 1.23
Current Ratio Curr Ratio (Qtr) 2.71 2.63
Debt to Equity Ratio Debt/Equity (Qtr) 0.27 0.73
Interest Cover Ratio Int Coverage (Qtr) 0.00 -16.04
Times Interest Earned Times Interest Earned (Qtr) 0.00 -16.04
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -549.97
EBIT Margin % EBIT Margin % (Qtr) 0.00 -240.33
EBT Margin % EBT Margin % (Qtr) 0.00 -608.68
Gross Margin % Gross Margin % (Qtr) 0.00 51.14
Net Profit Margin % Net Margin % (Qtr) 0.00 -611.28