Greenland Technologies Holding Corp. (NASDAQ: GTEC)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0001735041
Market Cap 12.91 Mn
P/B 0.17
P/E 0.91
P/S 0.15
ROIC (Qtr) 10.85
Div Yield % 0.00
Rev 1y % (Qtr) 24.25
Total Debt (Qtr) 15.60 Mn
Debt/Equity (Qtr) 0.21

About

Greenland Technologies Holding Corp., with its ticker symbol GTEC, is a company that operates in the material handling industry, designing, developing, manufacturing, and selling components and products for this global market. The company's main business activities encompass the production of transmission systems and integrated powertrains for material handling machineries, particularly forklift trucks, as well as the manufacturing of electric industrial vehicles to meet the increasing demand for sustainable energy in the industry. Greenland Technologies'...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 12.16M provides robust 0.78x coverage of total debt 15.60M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 120.10M provides 7.70x coverage of total debt 15.60M, indicating robust asset backing and low credit risk.
  • Tangible assets of 120.10M provide exceptional 107.02x coverage of deferred revenue 1.12M, showing strong service capability backing.
  • Robust free cash flow of 11.44M exceeds capital expenditure of 717365 by 15.95x, indicating strong organic growth funding capability.
  • Operating cash flow of 12.16M provides strong 10.83x coverage of deferred revenue 1.12M, indicating service delivery capability.

Bear case

  • Operating cash flow of 12.16M barely covers its investment activities of (438206), with a coverage ratio of -27.74, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 3.94M against inventory of 23.86M, the 0.17 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 12.16M provides thin coverage of dividend payments of (6.61M) with a -1.84 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (438206) provide weak support for R&D spending of 1.47M, which is -0.30x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 45.56M significantly exceed cash reserves of 3.94M, which is 11.56x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.

Operating Activities Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Auto Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ORLY O Reilly Automotive Inc 80.07 Bn 32.23 4.59 8.40 Bn
2 AZO Autozone Inc 57.24 Bn 23.23 2.97 12.05 Bn
3 APTV Aptiv PLC 19.67 Bn 66.67 0.98 8.03 Bn
4 GPC Genuine Parts Co 17.83 Bn 22.05 0.74 6.40 Bn
5 MGA Magna International Inc 15.86 Bn 15.36 0.38 7.48 Bn
6 ALV Autoliv Inc 9.72 Bn 12.92 0.92 2.19 Bn
7 MBLY Mobileye Global Inc. 9.47 Bn -28.17 4.88 0.00 Bn
8 BWA Borgwarner Inc 8.87 Bn 66.21 0.63 3.90 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.21 1.16
EV to Cash from Ops. EV/CFO 2.12 9.30
EV to Debt EV to Debt 1.66 34.64
EV to EBIT EV/EBIT 1.48 4.45
EV to EBITDA EV/EBITDA 1.85 7.40
EV to Free Cash Flow [EV/FCF] EV/FCF 2.26 17.25
EV to Market Cap EV to Market Cap 2.00 1.58
EV to Revenue EV/Rev 0.30 3.42
Price to Book Value [P/B] P/B 0.17 -0.33
Price to Earnings [P/E] P/E 0.91 11.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.13 1.64
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 12.18
Dividend per Basic Share Div per Share (Qtr) 0.00 0.41
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 13.70
Interest Coverage Int. cover (Qtr) -3,428.85 -110.44
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 54.00 -13.49
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -80.98 27.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.96
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 215.27 5.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.64 -8.06
EBIT Growth (1y) % EBIT 1y % (Qtr) 255.84 -22.36
EBT Growth (1y) % EBT 1y % (Qtr) 254.22 -123.98
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 -110.42
FCF Growth (1y) % FCF 1y % (Qtr) 21.29 24.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 8.12 16.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.70 0.92
Cash Payout Ratio Cash Payout (Qtr) 0.51 -0.25
Cash Ratio Cash Ratio (Qtr) 0.08 0.69
Current Ratio Curr Ratio (Qtr) 1.93 2.88
Debt to Equity Ratio Debt/Equity (Qtr) 0.21 0.22
Interest Cover Ratio Int Coverage (Qtr) -3,428.85 -110.44
Times Interest Earned Times Interest Earned (Qtr) -3,428.85 -110.44
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 23.30 -952.44
EBIT Margin % EBIT Margin % (Qtr) 20.22 -997.37
EBT Margin % EBT Margin % (Qtr) 20.23 -987.56
Gross Margin % Gross Margin % (Qtr) 29.20 -122.43
Net Profit Margin % Net Margin % (Qtr) 16.40 -979.78