Green Circle Decarbonize Technology Ltd (NYSE: GCDT)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0001926293
Market Cap 21.81 Mn
P/B -7.29
P/E -31.02
P/S 7.22
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 4.09 Mn
Debt/Equity (Qtr) -1.37
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About

Investment thesis

Bull case

  • Tangible assets of 3.46M provide exceptional 6.84x coverage of deferred revenue 505498.20, showing strong service capability backing.
  • Tangible assets of 3.46M provide robust 5.82x coverage of other current liabilities 594177.12, indicating strong asset backing.
  • Operating cash flow of 381998.07 exceeds receivables of 165918.64 by 2.30x, demonstrating excellent collection efficiency.
  • Retained earnings of (5.09M) represent substantial 1.70x of equity (2.99M), indicating strong internal capital generation.
  • Tangible assets of 3.46M provide robust 20.84x coverage of receivables 165918.64, showing strong asset quality.

Bear case

  • Operating cash flow of 381998.07 provides insufficient coverage of deferred revenue obligations of 505498.20, which is 0.76x, raising concerns about future service delivery capabilities.
  • Operating earnings of (380616.45) show weak coverage of depreciation charges of 474171.85, with a -0.80 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 474171.85 relative to operating cash flow of 381998.07, which is 1.24x suggests significant maintenance capital requirements affecting free cash flow.
  • Cash position of 142356.68 provides weak coverage of payables of 1.76M, which is 0.08x, indicating potential working capital stress and supplier relationship risks.
  • Free cash flow of 0 represents just -0x of debt issuance (63103.60), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.00 2.28
EV to Cash from Ops. EV to Cash from Ops. 0.00 37.14
EV to Debt EV to Debt 0.00 34.39
EV to EBIT EV to EBIT 0.00 27.71
EV to EBITDA EV to EBITDA 0.00 25.34
EV to Free Cash Flow [EV/FCF] EV to Free Cash Flow [EV/FCF] 0.00 133.36
EV to Market Cap EV to Market Cap 0.00 1.04
EV to Revenue EV to Revenue 0.00 39.88
Price to Book Value [P/B] P/B -7.29 6.22
Price to Earnings [P/E] P/E -31.02 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.57
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 15.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.91
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 82.53
Interest Coverage Interest Coverage -1.18 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 6.23 118.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 10.01
EBIAT Growth (1y) % EBIAT Growth (1y) % 40.98 -283.03
EBITDA Growth (1y) % EBITDA Growth (1y) % 141.36 -36.87
EBIT Growth (1y) % EBIT Growth (1y) % 40.98 -80.72
EBT Growth (1y) % EBT Growth (1y) % 26.88 -120.93
EPS Growth (1y) % EPS Growth (1y) % -62.42 -39.22
FCF Growth (1y) % FCF Growth (1y) % 0.00 85.55
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 14.79 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.11 0.62
Cash Payout Ratio Cash Payout Ratio 0.00 0.10
Cash Ratio Cash Ratio (Qtr) 0.02 3.01
Current Ratio Curr Ratio (Qtr) 0.22 4.97
Debt to Equity Ratio Debt/Equity (Qtr) -1.37 0.38
Interest Cover Ratio Interest Cover Ratio -1.18 12.34
Times Interest Earned Times Interest Earned -1.18 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 3.10 -7,291.27
EBIT Margin % EBIT Margin % -98.06 -7,413.30
EBT Margin % EBT Margin % -23.28 -9,015.79
Gross Margin % Gross Margin % 17.40 -32.61
Net Profit Margin % Net Profit Margin % -23.30 -7,962.06