Fold Holdings, Inc. (NASDAQ: FLD)

Sector: Financial Services Industry: Capital Markets CIK: 0001889123
Market Cap 59.95 Mn
P/B 0.63
P/E -1.74
P/S 1.93
ROIC (Qtr) -12.39
Div Yield % 0.00
Rev 1y % (Qtr) 41.15
Total Debt (Qtr) 82.39 Mn
Debt/Equity (Qtr) 0.87

About

FTAC Emerald Acquisition Corp., also known as EMLD, operates in the industry of special purpose acquisition companies (SPACs), with a focus on sectors such as clean/renewable energy, water sustainability, agricultural technology, shared economy software, and next-generation mobility. The company is incorporated in Delaware and is in the process of identifying a target company for its initial business combination. The main business activities of FTAC Emerald Acquisition Corp. involve searching for and acquiring a business with a core commitment...

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Price action

Investment thesis

Bull case

  • Tangible assets of 189.78M provide exceptional 230.59x coverage of deferred revenue 822996, showing strong service capability backing.
  • Long-term investments of 170.39M provide solid 2.07x coverage of long-term debt 82.39M, indicating strategic financial planning.
  • Tangible assets of 189.78M provide robust 15.95x coverage of other current liabilities 11.90M, indicating strong asset backing.
  • Robust tangible asset base of 189.78M provides 30.99x coverage of working capital 6.12M, indicating strong operational backing.
  • Long-term investments of 170.39M provide solid 27.82x backing of working capital 6.12M, showing strategic capital allocation.

Bear case

  • Operating cash flow of (11.35M) provides insufficient coverage of deferred revenue obligations of 822996, which is -13.79x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (11.35M) shows concerning coverage of stock compensation expenses of 8.47M, with a -1.34 ratio indicating potential earnings quality issues.
  • Free cash flow of (12.20M) provides weak coverage of capital expenditures of 847960, with a -14.38 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (29.76M) show weak coverage of depreciation charges of 515122, with a -57.77 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (12.20M) represents just -0.71x of debt issuance 17.16M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Capital Markets
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GS Goldman Sachs Group Inc 284.23 Bn 17.94 4.84 911.32 Bn
2 MS Morgan Stanley 279.63 Bn 17.97 4.05 353.12 Bn
3 SCHW Schwab Charles Corp 179.33 Bn 23.09 7.83 27.59 Bn
4 HOOD Robinhood Markets, Inc. 106.92 Bn 48.73 25.43 0.00 Bn
5 CRCL Circle Internet Group, Inc. 40.97 Bn 261.00 24.22 0.15 Bn
6 IBKR Interactive Brokers Group, Inc. 28.23 Bn 30.79 4.75 28.43 Bn
7 LPLA LPL Financial Holdings Inc. 27.60 Bn 33.13 1.77 7.52 Bn
8 FUTU Futu Holdings Ltd 22.89 Bn 18.13 8.54 1.75 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.70 1.07
EV to Cash from Ops. EV/CFO -11.74 15.33
EV to Debt EV to Debt 1.62 21.89
EV to EBIT EV/EBIT -4.48 -0.80
EV to EBITDA EV/EBITDA -6.39 11.20
EV to Free Cash Flow [EV/FCF] EV/FCF -10.93 43.08
EV to Market Cap EV to Market Cap 2.22 -0.05
EV to Revenue EV/Rev 4.28 12.82
Price to Book Value [P/B] P/B 0.63 3.09
Price to Earnings [P/E] P/E -1.74 6.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 4.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 10.37
Dividend per Basic Share Div per Share (Qtr) 0.00 0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -8.68
Interest Coverage Int. cover (Qtr) -6.39 37.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -61.01 -12,429.64
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 51.89 1,588.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 55.56 270.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -200.06 333.57
EBIT Growth (1y) % EBIT 1y % (Qtr) 55.55 3,103.22
EBT Growth (1y) % EBT 1y % (Qtr) 48.59 3,039.53
EPS Growth (1y) % EPS 1y % (Qtr) 86.44 24.25
FCF Growth (1y) % FCF 1y % (Qtr) -181.00 -80.08
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 75.13 51.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.16 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.08
Cash Ratio Cash Ratio (Qtr) 0.51 2.01
Current Ratio Curr Ratio (Qtr) 1.47 3.47
Debt to Equity Ratio Debt/Equity (Qtr) 0.87 1.46
Interest Cover Ratio Int Coverage (Qtr) -6.39 37.53
Times Interest Earned Times Interest Earned (Qtr) -6.39 37.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -94.00 76.68
EBIT Margin % EBIT Margin % (Qtr) -95.67 46.81
EBT Margin % EBT Margin % (Qtr) -110.65 58.57
Gross Margin % Gross Margin % (Qtr) 5.20 53.60
Net Profit Margin % Net Margin % (Qtr) -110.60 29.41