Global-E Online Ltd. (NASDAQ: GLBE)

Sector: Consumer Cyclical Industry: Internet Retail CIK: 0001835963
Market Cap 5.44 Bn
P/B 5.83
P/E 742.50
P/S 6.12
ROIC (Qtr) 1.36
Div Yield % 0.00
Rev 1y % (Qtr) 25.46
Total Debt (Qtr) 23.97 Mn
Debt/Equity (Qtr) 0.03
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About

Global-E Online Ltd. (GLBE) is a leading provider of global e-commerce enablement solutions, operating in the vast and rapidly growing e-commerce industry. The company's main business activities revolve around helping merchants sell and scale globally by providing a comprehensive platform that overcomes the complexities associated with international e-commerce. With a presence in over 30 countries, Global-E has established itself as a key player in the industry. Global-E generates revenue through its primary products and services, which include...

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Investment thesis

Bull case

  • Strong operating cash flow of 196.49M provides robust 8.20x coverage of total debt 23.97M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 251.38M provide 52.04x coverage of short-term debt 4.83M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 837.14M provides 34.92x coverage of total debt 23.97M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 196.49M provides exceptional 31.05x coverage of interest expenses 6.33M, showing strong debt service capability.
  • Robust free cash flow of 193.31M exceeds capital expenditure of 3.19M by 60.69x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 196.49M barely covers its investment activities of (170.75M), with a coverage ratio of -1.15, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (170.75M) provide weak support for R&D spending of 117.97M, which is -1.45x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 196.49M provides minimal -2847.71x coverage of tax expenses of (69000), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 13.59M show weak coverage of depreciation charges of 20.29M, with a 0.67 ratio indicating high capital intensity and potential reinvestment needs.
  • Retained earnings of (526.58M) provide limited buffer against comprehensive income items of 3.95M, which is -133.28x, indicating elevated exposure to market risks.

Peer comparison

Companies in the Internet Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AMZN Amazon Com Inc 2,143.12 Bn 27.59 2.99 152.99 Bn
2 BABA Alibaba Group Holding Ltd 359.97 Bn 20.43 2.53 39.55 Bn
3 PDD PDD Holdings Inc. 142.04 Bn 9.89 2.42 1.50 Bn
4 EBAY Ebay Inc 102.21 Bn -123.00 9.66 7.02 Bn
5 MELI Mercadolibre Inc 100.15 Bn 48.22 3.82 9.88 Bn
6 DASH DoorDash, Inc. 68.68 Bn 79.58 5.44 3.26 Bn
7 SE Sea Ltd 64.13 Bn 45.21 3.05 4.24 Bn
8 JD JD.com, Inc. 39.35 Bn 8.70 0.21 15.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.11 1.35
EV to Cash from Ops. EV/CFO 26.77 9.33
EV to Debt EV to Debt 219.40 9.27
EV to EBIT EV/EBIT 387.14 17.25
EV to EBITDA EV/EBITDA 155.28 16.40
EV to Free Cash Flow [EV/FCF] EV/FCF 27.21 14.98
EV to Market Cap EV to Market Cap 0.97 -49.25
EV to Revenue EV/Rev 5.92 -2.91
Price to Book Value [P/B] P/B 5.83 5.14
Price to Earnings [P/E] P/E 742.50 26.71
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -93.84
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -203.90
Dividend per Basic Share Div per Share (Qtr) 0.00 0.08
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -3.46
Interest Coverage Int. cover (Qtr) 2.15 37.28
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -14.61 -38.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 21.25 60.19
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 113.89 -369.83
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 145.41 -112.37
EBIT Growth (1y) % EBIT 1y % (Qtr) 114.13 -1,110.34
EBT Growth (1y) % EBT 1y % (Qtr) 107.52 -130.47
EPS Growth (1y) % EPS 1y % (Qtr) 106.90 2.19
FCF Growth (1y) % FCF 1y % (Qtr) 47.76 -48.38
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 34.66 1.43
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.69 1.16
Cash Payout Ratio Cash Payout Ratio 0.00 -0.04
Cash Ratio Cash Ratio (Qtr) 0.77 2.15
Current Ratio Curr Ratio (Qtr) 2.44 3.66
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 0.50
Interest Cover Ratio Int Coverage (Qtr) 2.15 37.28
Times Interest Earned Times Interest Earned (Qtr) 2.15 37.28
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 3.80 3.81
EBIT Margin % EBIT Margin % (Qtr) 1.53 -28.80
EBT Margin % EBT Margin % (Qtr) 0.82 -42.22
Gross Margin % Gross Margin % (Qtr) 45.00 44.93
Net Profit Margin % Net Margin % (Qtr) 0.80 -42.02