Global-E Online Ltd. (NASDAQ: GLBE)

Sector: Consumer Cyclical Industry: Internet Retail CIK: 0001835963
Market Cap 7.02 Bn
P/B 7.52
P/E 957.75
P/S 7.90
ROIC (Qtr) 1.36
Div Yield % 0.00
Rev 1y % (Qtr) 25.46
Total Debt (Qtr) 23.97 Mn
Debt/Equity (Qtr) 0.03

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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Price action

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 2,526.56 Bn 33.03 3.65 135.42 Bn
2 BABA Alibaba Group Holding Ltd 395.87 Bn 22.47 2.79 39.55 Bn
3 PDD PDD Holdings Inc. 149.89 Bn 10.44 2.55 1.50 Bn
4 MELI Mercadolibre Inc 106.40 Bn 51.23 4.06 9.88 Bn
5 DASH DoorDash, Inc. 88.88 Bn 103.00 7.03 3.26 Bn
6 SE Sea Ltd 73.28 Bn 51.67 3.48 4.24 Bn
7 EBAY Ebay Inc 64.91 Bn 5.04 6.46 7.02 Bn
8 JD JD.com, Inc. 42.35 Bn 9.36 0.23 15.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 5.35 1.64
EV to Cash from Ops. EV/CFO 34.79 10.76
EV to Debt EV to Debt 285.19 18.39
EV to EBIT EV/EBIT 503.23 20.59
EV to EBITDA EV/EBITDA 201.84 20.75
EV to Free Cash Flow [EV/FCF] EV/FCF 35.37 16.58
EV to Market Cap EV to Market Cap 0.97 -3.15
EV to Revenue EV/Rev 7.70 -4.05
Price to Book Value [P/B] P/B 7.52 5.50
Price to Earnings [P/E] P/E 957.75 36.85
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 -1,581.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -14.61 -39.45
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 21.25 53.91
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 113.89 37.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 145.41 -62.59
EBIT Growth (1y) % EBIT 1y % (Qtr) 114.13 8.33
EBT Growth (1y) % EBT 1y % (Qtr) 107.52 -10.66
EPS Growth (1y) % EPS 1y % (Qtr) 106.90 13.44
FCF Growth (1y) % FCF 1y % (Qtr) 47.76 -46.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 34.66 23.19
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.69 1.17
Cash Payout Ratio Cash Payout Ratio 0.00 -0.04
Cash Ratio Cash Ratio (Qtr) 0.77 2.14
Current Ratio Curr Ratio (Qtr) 2.44 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 0.52
Interest Cover Ratio Int Coverage (Qtr) 2.15 -1,581.43
Times Interest Earned Times Interest Earned (Qtr) 2.15 -1,581.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 3.80 4.40
EBIT Margin % EBIT Margin % (Qtr) 1.53 -36.99
EBT Margin % EBT Margin % (Qtr) 0.82 -40.80
Gross Margin % Gross Margin % (Qtr) 45.00 44.74
Net Profit Margin % Net Margin % (Qtr) 0.80 -40.62