Golden Heaven Group Holdings Ltd. (NASDAQ: GDHG)

Sector: Consumer Cyclical Industry: Leisure CIK: 0001928340
Market Cap 1.51 Mn
P/B 0.01
P/E -0.18
P/S 0.10
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 7.17 Mn
Debt/Equity (Qtr) 0.04
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About

Golden Heaven Group Holdings Ltd., also known as GDHG, operates in the amusement park industry in China, with its main business activities encompassing the operation of amusement parks, water parks, and complementary recreational facilities. The company generates revenue from the sale of tickets, food and beverages, and merchandise. Golden Heaven Group Holdings Ltd.'s primary products and services include rides and attractions, convenience stores, gourmet festivals, and circus performances. Its parks offer a variety of rides and attractions, such...

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Investment thesis

Bull case

  • Strong operating cash flow of 18.96M provides robust 2.64x coverage of total debt 7.17M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 86M provide 110.45x coverage of short-term debt 778645, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 18.96M provides exceptional 1524.29x coverage of interest expenses 12437, showing strong debt service capability.
  • Strong tangible asset base of 191.45M provides 26.70x coverage of total debt 7.17M, indicating robust asset backing and low credit risk.
  • Free cash flow of 19.19M provides exceptional 1543.24x coverage of interest expense 12437, showing strong debt service ability.

Bear case

  • Operating cash flow of 18.96M barely covers its investment activities of (49.76M), with a coverage ratio of -0.38, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of 19.19M provides weak coverage of capital expenditures of (235650), with a -81.45 ratio suggesting additional external financing needs for growth initiatives.
  • The company's operating cash flow of 18.96M shows concerning coverage of stock compensation expenses of 9.35M, with a 2.03 ratio indicating potential earnings quality issues.
  • Operating earnings of (6.93M) show weak coverage of depreciation charges of 3.24M, with a -2.14 ratio indicating high capital intensity and potential reinvestment needs.
  • High financing cash flow of 97.13M relative to working capital of 105.73M, which is 0.92x suggests concerning dependence on external funding for operational needs.

Peer comparison

Companies in the Leisure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AS Amer Sports, Inc. 22.38 Bn 71.89 3.67 1.87 Bn
2 HAS Hasbro, Inc. 13.30 Bn 46.47 3.26 3.32 Bn
3 PLNT Planet Fitness, Inc. 7.78 Bn 37.79 6.04 2.58 Bn
4 GOLF Acushnet Holdings Corp. 7.40 Bn 80.24 4.75 0.90 Bn
5 LTH Life Time Group Holdings, Inc. 6.29 Bn 21.85 2.16 4.13 Bn
6 MAT Mattel Inc /De/ 5.43 Bn 12.57 1.04 2.59 Bn
7 YETI YETI Holdings, Inc. 3.97 Bn 24.75 2.17 0.22 Bn
8 MSGE Madison Square Garden Entertainment Corp. 2.95 Bn 56.80 2.91 1.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.30 1.19
EV to Cash from Ops. EV/CFO -3.01 -6.09
EV to Debt EV to Debt -7.96 14.49
EV to EBIT EV/EBIT 8.24 -159.90
EV to EBITDA EV/EBITDA 16.04 -4.06
EV to Free Cash Flow [EV/FCF] EV/FCF -2.97 0.74
EV to Market Cap EV to Market Cap -37.87 -0.64
EV to Revenue EV/Rev -3.73 4.65
Price to Book Value [P/B] P/B 0.01 4.75
Price to Earnings [P/E] P/E -0.18 12.00
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.51
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 3.11
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 6.13
Interest Coverage Interest Coverage -557.19 -30.68
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % -75.66 -13.50
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 333.70 1,190.33
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 13.88
EBIAT Growth (1y) % EBIAT Growth (1y) % -366.73 -111.75
EBITDA Growth (1y) % EBITDA Growth (1y) % -197.14 -165.31
EBIT Growth (1y) % EBIT Growth (1y) % -2,199.31 -1,562.20
EBT Growth (1y) % EBT Growth (1y) % -2,251.49 -1,555.34
EPS Growth (1y) % EPS Growth (1y) % 95.88 -377.44
FCF Growth (1y) % FCF Growth (1y) % 1,039.26 10.93
Gross Profit Growth (1y) % Gross Profit Growth (1y) % -23.32 17.65
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.08 0.73
Cash Payout Ratio Cash Payout Ratio 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 19.53 3.31
Current Ratio Curr Ratio (Qtr) 25.01 4.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 2.35
Interest Cover Ratio Interest Cover Ratio -557.19 -30.68
Times Interest Earned Times Interest Earned -557.19 -30.68
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % -24.10 -57.55
EBIT Margin % EBIT Margin % -45.33 -65.38
EBT Margin % EBT Margin % -45.41 -69.55
Gross Margin % Gross Margin % 50.20 46.51
Net Profit Margin % Net Profit Margin % -56.20 -74.45