Focus Universal Inc. (NASDAQ: FCUV)

Sector: Technology Industry: Scientific & Technical Instruments CIK: 0001590418
Market Cap 14.82 Mn
P/B 84.78
P/E -2.52
P/S 38.25
ROIC (Qtr) -1,176.55
Div Yield % 0.00
Rev 1y % (Qtr) -61.34
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Focus Universal Inc., a Nevada-based technology company with the ticker symbol FCUV, operates in the Internet of Things (IoT) industry. The company's main business activities revolve around the development of innovative technologies that facilitate seamless communication, data transfer, and device integration. These technologies are designed to address the fundamental problems that plague the IoT industry. Focus Universal's primary products and services include ultra-narrowband wireless communication technology, power line communication technology,...

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Price action

Investment thesis

Bull case

  • Operating cash flow of (4.71M) provides exceptional 150.07x coverage of interest expenses (31365), showing strong debt service capability.
  • Free cash flow of (4.74M) provides exceptional 151.11x coverage of interest expense (31365), showing strong debt service ability.
  • Robust tangible asset base of 880445 provides 13.45x coverage of working capital 65439, indicating strong operational backing.
  • Short-term investments of 43548 provide solid 2.12x coverage of other current liabilities 20534, indicating strong liquidity.
  • Tangible assets of 880445 provide robust 42.88x coverage of other current liabilities 20534, indicating strong asset backing.

Bear case

  • Investment activities of (32755) provide weak support for R&D spending of 1.56M, which is -0.02x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (4.71M) shows concerning coverage of stock compensation expenses of 131364, with a -35.83 ratio indicating potential earnings quality issues.
  • Free cash flow of (4.74M) provides weak coverage of capital expenditures of 32755, with a -144.70 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (5.92M) show weak coverage of depreciation charges of 18104, with a -326.79 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (4.71M) barely covers operating expenses of 1.90M with a -2.48 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Scientific & Technical Instruments
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GRMN Garmin Ltd 38.77 Bn 24.68 5.58 0.16 Bn
2 KEYS Keysight Technologies, Inc. 34.91 Bn 41.07 6.49 2.78 Bn
3 COHR Coherent Corp. 28.91 Bn 244.51 4.78 3.51 Bn
4 TDY Teledyne Technologies Inc 23.87 Bn 29.19 3.98 2.53 Bn
5 TRMB Trimble Inc. 19.54 Bn 54.65 5.43 1.39 Bn
6 FTV Fortive Corp 18.68 Bn 31.02 3.31 3.31 Bn
7 MKSI Mks Inc 10.78 Bn 38.63 2.81 4.55 Bn
8 CGNX Cognex Corp 6.14 Bn 55.76 6.32 0.08 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 15.57 2.20
EV to Cash from Ops. EV/CFO -2.91 9.84
EV to Debt EV to Debt 0.00 22.70
EV to EBIT EV/EBIT -2.32 15.74
EV to EBITDA EV/EBITDA -2.29 11.58
EV to Free Cash Flow [EV/FCF] EV/FCF -2.89 24.79
EV to Market Cap EV to Market Cap 0.93 -2.78
EV to Revenue EV/Rev 35.38 6.45
Price to Book Value [P/B] P/B 84.78 7.12
Price to Earnings [P/E] P/E -2.52 13.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -16.40
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -7.19
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.83
Interest Coverage Int. cover (Qtr) 188.62 -13.61
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -100.46 -21.70
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -92.40 101.63
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.97
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -120.00 19.84
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -6.60 17.31
EBIT Growth (1y) % EBIT 1y % (Qtr) -120.00 20.90
EBT Growth (1y) % EBT 1y % (Qtr) -106.01 82.68
EPS Growth (1y) % EPS 1y % (Qtr) -72.34 65.55
FCF Growth (1y) % FCF 1y % (Qtr) -286.01 32.88
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -183.61 34.27
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.44 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.58 2.99
Current Ratio Curr Ratio (Qtr) 1.09 4.83
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.67
Interest Cover Ratio Int Coverage (Qtr) 188.62 -13.61
Times Interest Earned Times Interest Earned (Qtr) 188.62 -13.61
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1,522.20 -296.15
EBIT Margin % EBIT Margin % (Qtr) -1,526.91 -316.09
EBT Margin % EBT Margin % (Qtr) -1,518.82 -351.37
Gross Margin % Gross Margin % (Qtr) -28.50 40.05
Net Profit Margin % Net Margin % (Qtr) -1,518.80 -354.10