FingerMotion, Inc. (NASDAQ: FNGR)

Sector: Communication Services Industry: Telecom Services CIK: 0001602409
Market Cap 57.01 Mn
P/B 3.48
P/E -10.70
P/S 1.72
ROIC (Qtr) -38.23
Div Yield % 0.00
Rev 1y % (Qtr) -32.08
Total Debt (Qtr) 382,623.00
Debt/Equity (Qtr) 0.02
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About

FingerMotion, Inc. (FNGR) is a mobile data specialist company operating in the telecommunications industry. The company's headquarters are located in Singapore, while its operations span across various provinces in China, including Chengdu, Jiangxi, Jiangsu, Chongqing, Shanghai, Zhuhai, Zhejiang, Shaanxi, Inner Mongolia, Henan, and Fujian. FingerMotion's core business revolves around mobile payment and recharge services, which generate revenue through partnerships with China Unicom and China Mobile, two leading telecommunications providers in China. FingerMotion's...

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Investment thesis

Bull case

  • Operating cash flow of (7.23M) provides exceptional 272.61x coverage of minority interest expenses (26511), showing strong core operations.
  • Strong tangible asset base of 57.83M provides 151.14x coverage of total debt 382623, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 57.83M provides 7.97x coverage of working capital 7.26M, indicating strong operational backing.
  • Tangible assets of 57.83M provide robust 6.12x coverage of other current liabilities 9.45M, indicating strong asset backing.
  • Cash reserves of 24214 provide solid 1.39x coverage of other non-current liabilities 17447, indicating strong liquidity.

Bear case

  • With cash reserves of 24214 against inventory of 115752, the 0.21 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Investment activities of (22495) provide weak support for R&D spending of 462168, which is -0.05x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 45.92M relative to inventory of 115752 (396.69 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of (7.23M) shows concerning coverage of stock compensation expenses of 65162, with a -110.91 ratio indicating potential earnings quality issues.
  • Free cash flow of (7.25M) provides weak coverage of capital expenditures of 22495, with a -322.28 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Telecom Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMUS T-Mobile US, Inc. 247.58 Bn 22.52 2.80 118.74 Bn
2 T At&T Inc. 210.50 Bn 12.86 1.15 155.04 Bn
3 VZ Verizon Communications Inc 202.20 Bn 11.00 1.54 181.64 Bn
4 CMCSA Comcast Corp 180.83 Bn 58.43 5.08 98.94 Bn
5 VOD Vodafone Group Public Ltd Co 44.88 Bn 3.20 0.62 60.54 Bn
6 CHT Chunghwa Telecom Co Ltd 33.41 Bn 26.87 4.32 1.20 Bn
7 SATS EchoStar CORP 32.60 Bn -2.52 2.15 30.58 Bn
8 CHTR Charter Communications, Inc. /Mo/ 32.03 Bn 6.42 0.58 96.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.95 0.87
EV to Cash from Ops. EV/CFO -7.91 7.73
EV to Debt EV to Debt 149.41 40.31
EV to EBIT EV/EBIT -9.48 2.24
EV to EBITDA EV/EBITDA -9.71 2.53
EV to Free Cash Flow [EV/FCF] EV/FCF -7.89 33.34
EV to Market Cap EV to Market Cap 1.00 1.71
EV to Revenue EV/Rev 1.72 5.12
Price to Book Value [P/B] P/B 3.48 2.16
Price to Earnings [P/E] P/E -10.70 76.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.17
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.79
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.04
Interest Coverage Int. cover (Qtr) -32.52 -2.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -1,221.68 19.27
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -85.29 61.85
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -2.07
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 3.87 373.65
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -8.87 192.47
EBIT Growth (1y) % EBIT 1y % (Qtr) -12.21 814.56
EBT Growth (1y) % EBT 1y % (Qtr) -13.64 -29.03
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 141.81
FCF Growth (1y) % FCF 1y % (Qtr) -46.08 78.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -16.52 -10.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.55 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 0.00 0.68
Current Ratio Curr Ratio (Qtr) 1.17 1.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 -0.46
Interest Cover Ratio Int Coverage (Qtr) -32.52 -2.53
Times Interest Earned Times Interest Earned (Qtr) -32.52 -2.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -17.40 46.49
EBIT Margin % EBIT Margin % (Qtr) -18.20 -51.60
EBT Margin % EBT Margin % (Qtr) -18.76 27.73
Gross Margin % Gross Margin % (Qtr) 5.40 55.49
Net Profit Margin % Net Margin % (Qtr) -16.10 26.33