Giftify, Inc. (NASDAQ: GIFT)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001760233
Market Cap 30.78 Mn
P/B 1.45
P/E -2.55
P/S 0.36
ROIC (Qtr) -42.65
Div Yield % 0.00
Rev 1y % (Qtr) -19.07
Total Debt (Qtr) 6.54 Mn
Debt/Equity (Qtr) 0.31

About

Price action

Investment thesis

Bull case

  • Tangible assets of 9.06M provide exceptional 73.32x coverage of deferred revenue 123583, showing strong service capability backing.
  • Cash reserves of 4.09M provide ample 37.33x coverage of acquisition spending 109543, enabling strategic growth opportunities.
  • Tangible assets of 9.06M provide robust 4.94x coverage of other current liabilities 1.83M, indicating strong asset backing.
  • Strong cash position of 4.09M provides 2.23x coverage of other current liabilities 1.83M, indicating excellent liquidity.
  • Cash reserves of 4.09M provide solid 7.32x coverage of other non-current liabilities 558843, indicating strong liquidity.

Bear case

  • Operating cash flow of (684989) barely covers its investment activities of 784189, with a coverage ratio of -0.87, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (684989) provides insufficient coverage of deferred revenue obligations of 123583, which is -5.54x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (684989) shows concerning coverage of stock compensation expenses of 4.86M, with a -0.14 ratio indicating potential earnings quality issues.
  • Free cash flow of (10343) provides weak coverage of capital expenditures of (674646), with a 0.02 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (684989) provides minimal 0.62x coverage of tax expenses of (1.11M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.03 1.10
EV to Cash from Ops. EV/CFO -48.26 -3.08
EV to Debt EV to Debt 5.05 28.98
EV to EBIT EV/EBIT -2.65 -26.54
EV to EBITDA EV/EBITDA -3.64 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF -3,195.82 -67.01
EV to Market Cap EV to Market Cap 1.07 0.90
EV to Revenue EV/Rev 0.38 61.25
Price to Book Value [P/B] P/B 1.45 1.56
Price to Earnings [P/E] P/E -2.55 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) -17.99 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 142.84 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 29.55 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -11.20 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 22.85 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -21.96 32.66
EBT Growth (1y) % EBT 1y % (Qtr) 1.48 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) 12.50 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) 99.74 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 25.17 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 2.68 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.47 1.54
Current Ratio Curr Ratio (Qtr) 0.82 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 0.31 -0.39
Interest Cover Ratio Int Coverage (Qtr) -17.99 -202.56
Times Interest Earned Times Interest Earned (Qtr) -17.99 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -10.70 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) -14.51 -4,786.62
EBT Margin % EBT Margin % (Qtr) -15.31 -5,002.12
Gross Margin % Gross Margin % (Qtr) 17.20 58.65
Net Profit Margin % Net Margin % (Qtr) -14.00 -5,003.08