Future FinTech Group Inc. (NASDAQ: FTFT)

Sector: Technology Industry: Software - Application CIK: 0001066923
Market Cap 829,491.16
P/B 0.02
P/E -0.03
P/S -0.08
ROIC (Qtr) -194.45
Div Yield % 0.00
Rev 1y % (Qtr) 28.97
Total Debt (Qtr) 1.93 Mn
Debt/Equity (Qtr) 0.04
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About

Investment thesis

Bull case

  • Strong operating cash flow of 1.60M provides robust 0.83x coverage of total debt 1.93M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 6.89M provide 3.70x coverage of short-term debt 1.86M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 53.85M provides 27.89x coverage of total debt 1.93M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 1.60M provides exceptional 23.93x coverage of interest expenses 66778, showing strong debt service capability.
  • Strong operating cash flow of 1.60M provides 2.58x coverage of SG&A expenses 620320, showing efficient operational cost management.

Bear case

  • Operating cash flow of 1.60M barely covers its investment activities of (31.55M), with a coverage ratio of -0.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (31.55M) provide weak support for R&D spending of 309836, which is -101.83x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 6.89M provide limited coverage of acquisition spending of (30.97M), which is -0.22x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Short-term investments of 37.16M significantly exceed cash reserves of 6.89M, which is 5.39x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of 1.60M shows concerning coverage of stock compensation expenses of 1.76M, with a 0.91 ratio indicating potential earnings quality issues.

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 235.43 Bn 27.31 5.44 9.50 Bn
2 SHOP Shopify Inc. 147.12 Bn 119.52 12.73 0.19 Bn
3 UBER Uber Technologies, Inc 147.10 Bn 14.63 2.83 12.08 Bn
4 CRM Salesforce, Inc. 122.20 Bn 594.48 15.45 11.14 Bn
5 INTU Intuit Inc. 113.93 Bn 178.01 32.63 6.78 Bn
6 ADBE Adobe Inc. 111.00 Bn 15.57 4.67 6.65 Bn
7 NOW ServiceNow, Inc. 109.54 Bn 62.67 8.25 2.40 Bn
8 ADP Automatic Data Processing Inc 86.44 Bn 20.41 4.07 4.37 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.08 2.08
EV to Cash from Ops. EV/CFO -2.65 11.38
EV to Debt EV to Debt -2.19 47.67
EV to EBIT EV/EBIT 0.15 6.78
EV to EBITDA EV/EBITDA 0.07 7.15
EV to Free Cash Flow [EV/FCF] EV/FCF -2.17 14.44
EV to Market Cap EV to Market Cap -5.10 -8.88
EV to Revenue EV/Rev 0.43 4.04
Price to Book Value [P/B] P/B 0.02 3.65
Price to Earnings [P/E] P/E -0.03 -117.75
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -4.05
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.38
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.48
Interest Coverage Int. cover (Qtr) -413.45 -43.57
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 17.13 -222.46
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 5.70 281.53
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.78
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 26.32 -327.55
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -129.87 30.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 26.45 -213.00
EBT Growth (1y) % EBT 1y % (Qtr) 26.45 -86.84
EPS Growth (1y) % EPS 1y % (Qtr) 47.76 108.58
FCF Growth (1y) % FCF 1y % (Qtr) 109.36 6.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -115.40 94.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) -0.18 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.70 3.78
Current Ratio Curr Ratio (Qtr) 5.14 8.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 0.14
Interest Cover Ratio Int Coverage (Qtr) -413.45 -43.57
Times Interest Earned Times Interest Earned (Qtr) -413.45 -43.57
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 279.10 -105.03
EBIT Margin % EBIT Margin % (Qtr) 280.00 -130.16
EBT Margin % EBT Margin % (Qtr) 280.68 -121.17
Gross Margin % Gross Margin % (Qtr) 34.50 58.37
Net Profit Margin % Net Margin % (Qtr) 280.70 -126.13