FG Merger II Corp. (NASDAQ: FGMC)

Sector: Financial Services Industry: Shell Companies CIK: 0001906364
Market Cap 66.30 Mn
P/B 296.09
P/E 68.04
P/S 0.00
ROIC (Qtr) -82.10
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Investment thesis

Bull case

  • Strong operating cash flow of 1.28M provides 1.60x coverage of SG&A expenses 803254, showing efficient operational cost management.
  • Robust tangible asset base of 82.55M provides 368.67x coverage of working capital 223910, indicating strong operational backing.
  • Tangible assets of 82.55M provide robust 174.69x coverage of other current liabilities 472539, indicating strong asset backing.
  • Long-term investments of 81.85M provide solid 365.55x backing of working capital 223910, showing strategic capital allocation.
  • Operating cash flow of 1.28M provides solid 2.70x coverage of current liabilities 475267, showing strong operational health.

Bear case

  • Operating cash flow of 1.28M barely covers its investment activities of (81.85M), 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.
  • Free cash flow of 1.28M represents just -9.74x of debt issuance (131671), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High financing cash flow of 81.09M relative to working capital of 223910, which is 362.17x suggests concerning dependence on external funding for operational needs.
  • Operating cash flow of 1.28M is outpaced by equity issuance of 81.22M (0.02 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tax assets of 0 provide limited offset against tax liabilities of 472539, which is 0x, indicating potential future cash flow pressure from tax obligations.

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 0.80 0.95
EV to Cash from Ops. EV/CFO 51.28 18.30
EV to Debt EV to Debt 0.00 125,153.88
EV to EBIT EV/EBIT 45.46 34.06
EV to EBITDA EV/EBITDA -81.89 -165.45
EV to Free Cash Flow [EV/FCF] EV/FCF 51.28 18.30
EV to Market Cap EV to Market Cap 0.99 0.63
EV to Revenue EV to Revenue 0.00 0.00
Price to Book Value [P/B] P/B 296.09 -20.50
Price to Earnings [P/E] P/E 68.04 -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) 989.93 410.95
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 3,660.45 282.79
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -2,835.12 -126.98
EBIT Growth (1y) % EBIT 1y % (Qtr) 5,387.12 304.32
EBT Growth (1y) % EBT 1y % (Qtr) 5,387.12 303.65
EPS Growth (1y) % EPS 1y % (Qtr) 1,445.45 956.13
FCF Growth (1y) % FCF 1y % (Qtr) 1,423.78 -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) 1.22 52.04
Current Ratio Curr Ratio (Qtr) 1.47 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