High-Trend International Group (NASDAQ: HTCO)

Sector: Industrials Industry: Marine Shipping CIK: 0001928948
Market Cap 51.29 Mn
P/B 6.51
P/E -2.39
P/S 0.24
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 104,129.00
Debt/Equity (Qtr) 0.01
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About

Caravelle International Group, also known as CACO, is an ocean transportation services operator with a focus on international shipping and logistics. Headquartered in Singapore, the company operates through subsidiaries such as Topsheen Shipping Singapore Pte. Ltd. and Topsheen Bulk Singapore Pte. Ltd. Caravelle's primary business activities revolve around international shipping, where it provides transportation services under voyage contracts and vessel services for ship owners. The company operates in various countries, primarily in Asia, including...

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Investment thesis

Bull case

  • Strong operating cash flow of 4.63M provides robust 44.48x coverage of total debt 104129, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 10.14M provide 130.68x coverage of short-term debt 77596, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 32.36M provides 310.76x coverage of total debt 104129, indicating robust asset backing and low credit risk.
  • Operating cash flow of 4.63M provides exceptional 100.84x coverage of interest expenses 45935, showing strong debt service capability.
  • Robust free cash flow of 4.63M exceeds capital expenditure of 5071 by 912.41x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 4.63M barely covers its investment activities of (5071), with a coverage ratio of -913.41, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of 4.63M shows concerning coverage of stock compensation expenses of 21.92M, with a 0.21 ratio indicating potential earnings quality issues.
  • Operating earnings of (21.41M) show weak coverage of depreciation charges of 72958, with a -293.43 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 4.63M represents just -2.67x of debt issuance (1.73M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 4.63M barely covers operating expenses of 21.92M with a 0.21 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Marine Shipping
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KEX Kirby Corp 7.05 Bn 19.89 2.10 1.13 Bn
2 MATX Matson, Inc. 6.79 Bn 74.01 4.43 0.72 Bn
3 ZIM ZIM Integrated Shipping Services Ltd. 3.36 Bn 3.35 0.44 5.66 Bn
4 HAFN Hafnia Ltd 3.35 Bn 10.82 1.51 0.89 Bn
5 BWLP BW LPG Ltd 2.38 Bn 10.97 0.67 1.09 Bn
6 SBLK Star Bulk Carriers Corp. 2.37 Bn 245.30 3.42 1.23 Bn
7 CMRE Costamare Inc. 2.05 Bn 6.81 1.69 1.58 Bn
8 DAC Danaos Corp 1.99 Bn 4.27 1.93 0.75 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.21 0.60
EV to Cash from Ops. EV/CFO 8.46 6.07
EV to Debt EV to Debt 376.35 60.45
EV to EBIT EV/EBIT -1.83 4.74
EV to EBITDA EV/EBITDA -1.98 5.76
EV to Free Cash Flow [EV/FCF] EV/FCF 8.47 5.00
EV to Market Cap EV to Market Cap 0.76 29.59
EV to Revenue EV/Rev 0.18 2.00
Price to Book Value [P/B] P/B 6.51 1.07
Price to Earnings [P/E] P/E -2.39 13.80
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.47
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 68.67
Dividend per Basic Share Div per Share (Qtr) 0.00 1.18
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 105.16
Interest Coverage Interest Coverage -466.04 -7.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -33.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 47.75 25.96
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 9.12
EBIAT Growth (1y) % EBIAT Growth (1y) % 8.89 -27.24
EBITDA Growth (1y) % EBITDA Growth (1y) % -922.87 -36.36
EBIT Growth (1y) % EBIT Growth (1y) % 8.92 -26.39
EBT Growth (1y) % EBT Growth (1y) % 9.07 -36.07
EPS Growth (1y) % EPS Growth (1y) % 58.28 -30.68
FCF Growth (1y) % FCF Growth (1y) % 239.02 14.21
Gross Profit Growth (1y) % Gross Profit Growth (1y) % -16.02 -7.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 6.63 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.08
Cash Ratio Cash Ratio (Qtr) 0.51 1.33
Current Ratio Curr Ratio (Qtr) 1.54 2.15
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.73
Interest Cover Ratio Interest Cover Ratio -466.04 -7.10
Times Interest Earned Times Interest Earned -466.04 -7.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % -10.00 27.36
EBIT Margin % EBIT Margin % -9.98 17.95
EBT Margin % EBT Margin % -10.01 10.77
Gross Margin % Gross Margin % 3.20 37.00
Net Profit Margin % Net Profit Margin % -10.00 9.28