Health In Tech, Inc. (NASDAQ: HIT)

Sector: Technology Industry: Software - Application CIK: 0002019505
Market Cap 118.57 Mn
P/B 6.91
P/E 82.50
P/S 3.86
ROIC (Qtr) 6.14
Div Yield % 0.00
Rev 1y % (Qtr) 90.41
Total Debt (Qtr) 157,600.00
Debt/Equity (Qtr) 0.01

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 2.15M provides robust 13.65x coverage of total debt 157600, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 8.02M provide 108.77x coverage of short-term debt 73769, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 16.57M provides 105.16x coverage of total debt 157600, indicating robust asset backing and low credit risk.
  • Long-term investments of 863996 provide solid 10.31x coverage of long-term debt 83831, indicating strategic financial planning.
  • Tangible assets of 16.57M provide robust 19.07x coverage of other current liabilities 869088, indicating strong asset backing.

Bear case

  • Operating cash flow of 2.15M barely covers its investment activities of (2.90M), with a coverage ratio of -0.74, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (2.90M) provide weak support for R&D spending of 1.99M, which is -1.46x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 2.15M shows concerning coverage of stock compensation expenses of 1.96M, with a 1.10 ratio indicating potential earnings quality issues.
  • Long-term investments of 863996 represent a high 5.50x of fixed assets 157122, indicating potential overexposure to financial assets versus operational capabilities.
  • R&D investment of 1.99M represents just 0.12x of SG&A expenses of 17.23M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.86 2.65
EV to Cash from Ops. EV/CFO 51.41 13.37
EV to Debt EV to Debt 701.83 57.69
EV to EBIT EV/EBIT 55.11 19.12
EV to EBITDA EV/EBITDA 55.06 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 51.41 14.69
EV to Market Cap EV to Market Cap 0.93 -92.28
EV to Revenue EV/Rev 3.60 4.60
Price to Book Value [P/B] P/B 6.91 4.26
Price to Earnings [P/E] P/E 82.50 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) 0.00 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 359.22 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -34.08 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -39.09 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -32.56 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -19.07 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) -50.00 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -6.53 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 29.55 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.35 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.53 3.75
Current Ratio Curr Ratio (Qtr) 2.87 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.17
Interest Cover Ratio Int Coverage (Qtr) 0.00 -52.32
Times Interest Earned Times Interest Earned (Qtr) 0.00 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.60 -100.06
EBIT Margin % EBIT Margin % (Qtr) 6.53 -164.24
EBT Margin % EBT Margin % (Qtr) 6.53 -116.94
Gross Margin % Gross Margin % (Qtr) 67.10 58.20
Net Profit Margin % Net Margin % (Qtr) 4.70 -121.65