Fatpipe Inc/UT (NASDAQ: FATN)

Sector: Technology Industry: Software - Infrastructure CIK: 0001993400
P/B 1.68
P/E 82.67
P/S 2.38
Market Cap 35.34 Mn
ROIC (Qtr) 3.89
Div Yield % 0.00
Rev 1y % (Qtr) -29.24
Total Debt (Qtr) 6.05 Mn
Debt/Equity (Qtr) 0.29

About

Stock Price Chart

Analysis

Pros

  • Healthy cash reserves of 6.23M provide 6.47x coverage of short-term debt 962393, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (408718) provides exceptional 30.24x coverage of minority interest expenses (13514), showing strong core operations.
  • Strong tangible asset base of 31.38M provides 5.19x coverage of total debt 6.05M, indicating robust asset backing and low credit risk.
  • Tangible assets of 31.38M provide exceptional 28.51x coverage of deferred revenue 1.10M, showing strong service capability backing.
  • Retained earnings of 11.80M provide full 2.32x coverage of long-term debt 5.09M, indicating strong internal capital position.

Cons

  • Investment activities of (42981) provide weak support for R&D spending of 1.89M, which is -0.02x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (408718) provides insufficient coverage of deferred revenue obligations of 1.10M, which is -0.37x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (408718) shows concerning coverage of stock compensation expenses of 625220, with a -0.65 ratio indicating potential earnings quality issues.
  • High receivables of 9.82M relative to inventory of 328736 (29.86 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (448699) provides weak coverage of capital expenditures of 39981, with a -11.22 ratio suggesting additional external financing needs for growth initiatives.

Peer Comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,542.10 Bn 33.76 12.06 60.56 Bn
2 ORCL Oracle Corp 533.93 Bn 34.61 8.75 124.39 Bn
3 PLTR Palantir Technologies Inc. 437.56 Bn 399.47 112.31 0.24 Bn
4 PANW Palo Alto Networks Inc 125.16 Bn 112.03 13.10 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 120.85 Bn -384.67 26.47 0.82 Bn
6 SNPS Synopsys Inc 71.69 Bn 35.89 11.14 15.14 Bn
7 NET Cloudflare, Inc. 67.84 Bn -658.43 33.70 3.50 Bn
8 FTNT Fortinet, Inc. 63.33 Bn 33.80 9.66 1.00 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 1.11 2.56
EV to Cash from Ops. -87.45 38.32
EV to Debt 5.91 -11.37
EV to EBIT 22.29 -12.79
EV to EBITDA 19.58 7.72
EV to Free Cash Flow [EV/FCF] -79.66 24.22
EV to Market Cap 1.01 0.58
EV to Revenue 2.41 -35.00
Price to Book Value [P/B] 1.68 3.74
Price to Earnings [P/E] 82.67 -18.61

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % 0.00 2.69
Dividend per Basic Share 0.00 0.10
FCF Dividend Payout Ratio % 0.00 1.67
Interest Coverage 4.54 -13.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -625.86 -404.11
Cash and Equivalents Growth (1y) % 636.42 226.02
Dividend Growth (1y) % 0.00 -0.27
EBIAT Growth (1y) % -89.89 31.15
EBITDA Growth (1y) % -74.79 49.02
EBIT Growth (1y) % -76.45 25.85
EBT Growth (1y) % -80.67 17.82
EPS Growth (1y) % -92.50 70.69
FCF Growth (1y) % -2,034.88 295.45
Gross Profit Growth (1y) % -21.86 49.96

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.46 0.68
Cash Payout Ratio 0.00 0.02
Cash Ratio 1.03 1.21
Current Ratio 2.74 2.57
Debt to Equity Ratio 0.29 -0.93
Interest Cover Ratio 4.54 -13.15
Times Interest Earned 4.54 -13.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % 14.00 -544.82
EBIT Margin % 10.81 -197.78
EBT Margin % 8.43 -602.74
Gross Margin % 92.70 52.06
Net Profit Margin % 2.90 -605.52