Grande Group Ltd/HK (NASDAQ: GRAN)

Sector: Financial Services Industry: Capital Markets CIK: 0002027722
Market Cap 38.57 Mn
P/B 4.16
P/E -136.99
P/S 13.38
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 128,086.00
Debt/Equity (Qtr) 0.01
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About

Investment thesis

Bull case

  • Strong operating cash flow of 727222 provides robust 5.68x coverage of total debt 128086, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 11.48M provide 103.90x coverage of short-term debt 110462, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 12.11M provides 94.51x coverage of total debt 128086, indicating robust asset backing and low credit risk.
  • Tangible assets of 12.11M provide exceptional 26.79x coverage of deferred revenue 451907, showing strong service capability backing.
  • Retained earnings of 648884 provide full 36.82x coverage of long-term debt 17624, indicating strong internal capital position.

Bear case

  • Operating cash flow of 727222 barely covers its investment activities of (550000), with a coverage ratio of -1.32, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating earnings of (84590) show weak coverage of depreciation charges of 205532, with a -0.41 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 727222 represents just -41.39x of debt issuance (17569), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 727222 shows concerning coverage of minority interest expenses of (23432), which is -31.04x, suggesting complex corporate structure risks.
  • High financing cash flow of 9.35M relative to working capital of 9.33M, which is 1x suggests concerning dependence on external funding for operational needs.

Peer comparison

Companies in the Capital Markets
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GS Goldman Sachs Group Inc 370.13 Bn 100.44 11.31 911.32 Bn
2 MS Morgan Stanley 303.66 Bn 21.50 5.16 353.12 Bn
3 BMNR Bitmine Immersion Technologies, Inc. 146.52 Bn -30.07 20,386.82 0.00 Bn
4 SCHW Schwab Charles Corp 111.50 Bn 193.92 27.50 27.59 Bn
5 HOOD Robinhood Markets, Inc. 66.47 Bn 30.30 15.81 0.00 Bn
6 LPLA LPL Financial Holdings Inc. 31.32 Bn 164.38 7.18 7.52 Bn
7 IBKR Interactive Brokers Group, Inc. 31.19 Bn 45.81 6.61 28.43 Bn
8 CRCL Circle Internet Group, Inc. 29.31 Bn 186.73 17.33 0.15 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.03 1.16
EV to Cash from Ops. EV/CFO 50.41 1.57
EV to Debt EV to Debt 286.22 18.65
EV to EBIT EV/EBIT -433.40 10.06
EV to EBITDA EV/EBITDA 98.95 19.26
EV to Free Cash Flow [EV/FCF] EV/FCF 50.41 17.36
EV to Market Cap EV to Market Cap 0.95 -1.88
EV to Revenue EV/Rev 12.72 293.27
Price to Book Value [P/B] P/B 4.16 4.40
Price to Earnings [P/E] P/E -136.99 1.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.90
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 7.38
Dividend per Basic Share Div per Share (Qtr) 0.00 0.69
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 -9.01
Interest Coverage Interest Coverage 0.00 -165.39
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -12,128.19
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 449.31 1,713.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 3.31
EBIAT Growth (1y) % EBIAT Growth (1y) % -111.21 -2,037.55
EBITDA Growth (1y) % EBITDA Growth (1y) % -88.23 -3,959.17
EBIT Growth (1y) % EBIT Growth (1y) % -102.85 734.43
EBT Growth (1y) % EBT Growth (1y) % -102.85 845.20
EPS Growth (1y) % EPS Growth (1y) % -96.00 29.40
FCF Growth (1y) % FCF Growth (1y) % -43.85 -3,403.50
Gross Profit Growth (1y) % Gross Profit Growth (1y) % -45.04 55.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.24 0.52
Cash Payout Ratio Cash Payout Ratio 0.00 -0.08
Cash Ratio Cash Ratio (Qtr) 4.54 1.46
Current Ratio Curr Ratio (Qtr) 4.69 2.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 1.45
Interest Cover Ratio Interest Cover Ratio 0.00 -165.39
Times Interest Earned Times Interest Earned 0.00 -165.39
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 4.20 -959.98
EBIT Margin % EBIT Margin % -2.93 -999.31
EBT Margin % EBT Margin % -2.93 -982.34
Gross Margin % Gross Margin % 70.30 53.08
Net Profit Margin % Net Profit Margin % -9.80 -988.47