Future FinTech Group Inc. (NASDAQ: FTFT)

Sector: Technology Industry: Software - Application CIK: 0001066923
Market Cap 1.15 Mn
P/B 0.03
P/E -0.04
P/S -0.12
ROIC (Qtr) -194.45
Div Yield % 0.00
Rev 1y % (Qtr) 28.97
Total Debt (Qtr) 1.93 Mn
Debt/Equity (Qtr) 0.04

About

Price action

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 234.56 Bn 28.15 5.46 10.73 Bn
2 CRM Salesforce, Inc. 204.28 Bn 32.96 5.39 11.14 Bn
3 SHOP Shopify Inc. 169.36 Bn 95.09 15.83 1.12 Bn
4 UBER Uber Technologies, Inc 167.13 Bn 10.04 3.37 12.19 Bn
5 INTU Intuit Inc. 140.92 Bn 175.06 33.55 6.78 Bn
6 ADBE Adobe Inc. 124.98 Bn 17.53 5.26 6.65 Bn
7 NOW ServiceNow, Inc. 121.03 Bn 69.24 9.11 2.40 Bn
8 ADP Automatic Data Processing Inc 100.13 Bn 23.64 4.72 4.37 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.07 2.50
EV to Cash from Ops. EV/CFO -2.45 12.27
EV to Debt EV to Debt -2.03 50.31
EV to EBIT EV/EBIT 0.14 10.96
EV to EBITDA EV/EBITDA 0.07 16.84
EV to Free Cash Flow [EV/FCF] EV/FCF -2.00 14.08
EV to Market Cap EV to Market Cap -3.40 -118.20
EV to Revenue EV/Rev 0.40 4.45
Price to Book Value [P/B] P/B 0.03 4.27
Price to Earnings [P/E] P/E -0.04 -133.65
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.97
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.54
Interest Coverage Int. cover (Qtr) -413.45 -51.80
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 17.13 -210.77
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 5.70 9,906.83
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.62
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 26.32 -265.85
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -129.87 55.76
EBIT Growth (1y) % EBIT 1y % (Qtr) 26.45 -227.83
EBT Growth (1y) % EBT 1y % (Qtr) 26.45 -88.00
EPS Growth (1y) % EPS 1y % (Qtr) 47.76 121.91
FCF Growth (1y) % FCF 1y % (Qtr) 109.36 -40.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -115.40 92.11
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 3.77
Current Ratio Curr Ratio (Qtr) 5.14 8.19
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 0.16
Interest Cover Ratio Int Coverage (Qtr) -413.45 -51.80
Times Interest Earned Times Interest Earned (Qtr) -413.45 -51.80
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 279.10 -105.77
EBIT Margin % EBIT Margin % (Qtr) 280.00 -131.65
EBT Margin % EBT Margin % (Qtr) 280.68 -122.72
Gross Margin % Gross Margin % (Qtr) 34.50 58.14
Net Profit Margin % Net Margin % (Qtr) 280.70 -127.70