HomesToLife Ltd (NASDAQ: HTLM)

Sector: Consumer Cyclical Industry: Specialty Retail CIK: 0002023153
Market Cap 501.28 Mn
P/B 20.13
P/E 56.84
P/S 2.74
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 14.10
Total Debt (Qtr) 16.55 Mn
Debt/Equity (Qtr) 0.66
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About

Investment thesis

Bull case

  • Strong tangible asset base of 122.51M provides 7.40x coverage of total debt 16.55M, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 122.51M provides 6.56x coverage of working capital 18.66M, indicating strong operational backing.
  • Tangible assets of 122.51M provide robust 8.80x coverage of other current liabilities 13.92M, indicating strong asset backing.
  • Cash reserves of 21.75M provide solid 67.87x coverage of other non-current liabilities 320464, indicating strong liquidity.
  • Strong cash position of 21.75M provides 1.56x coverage of other current liabilities 13.92M, indicating excellent liquidity.

Bear case

  • High receivables of 70.60M relative to inventory of 12.16M (5.81 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Retained earnings of (631498) provide limited buffer against comprehensive income items of (11.66M), which is 0.05x, indicating elevated exposure to market risks.
  • Tax assets of 681779 provide limited offset against tax liabilities of 3.28M, which is 0.21x, indicating potential future cash flow pressure from tax obligations.
  • Cash position of 21.75M provides weak coverage of payables of 66.82M, which is 0.33x, indicating potential working capital stress and supplier relationship risks.
  • Other non-current assets of 681779 provide minimal coverage for long-term debt of 4.48M, which is 0.15x, indicating potential asset-liability mismatch.

Peer comparison

Companies in the Specialty Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ULTA Ulta Beauty, Inc. 32.20 Bn 27.06 2.69 2.57 Bn
2 WSM Williams Sonoma Inc 29.62 Bn 25.19 3.40 1.47 Bn
3 TSCO Tractor Supply Co /De/ 28.42 Bn 25.23 1.93 5.72 Bn
4 DKS Dick'S Sporting Goods, Inc. 24.98 Bn 88.10 4.64 7.70 Bn
5 CASY Caseys General Stores Inc 24.65 Bn 59.49 1.65 2.92 Bn
6 BBY Best Buy Co Inc 17.85 Bn 11.66 0.41 4.09 Bn
7 MUSA Murphy USA Inc. 15.91 Bn 61.33 1.35 2.75 Bn
8 FIVE Five Below, Inc 11.68 Bn 37.94 2.64 2.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.09 2.23
EV to Cash from Ops. EV/CFO -44.12 14.70
EV to Debt EV to Debt 30.26 79.39
EV to EBIT EV/EBIT 42.15 -40.16
EV to EBITDA EV/EBITDA 51.02 11.51
EV to Free Cash Flow [EV/FCF] EV/FCF -41.99 -286.14
EV to Market Cap EV to Market Cap 1.00 6.33
EV to Revenue EV/Rev 2.74 2.39
Price to Book Value [P/B] P/B 20.13 32.78
Price to Earnings [P/E] P/E 56.84 -36.32
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -4.05
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 14.19
Dividend per Basic Share Div per Share (Qtr) 0.00 0.71
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 18.58
Interest Coverage Int. cover (Qtr) 0.00 4.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 13.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.00 33.75
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.00 -272.99
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 588.45
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.00 29.27
EBT Growth (1y) % EBT 1y % (Qtr) 0.00 -92.23
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 -121.86
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 71.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 2.50
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 1.24
Cash Payout Ratio Cash Payout Ratio 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.23 0.74
Current Ratio Curr Ratio (Qtr) 1.20 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.66 25.92
Interest Cover Ratio Int Coverage (Qtr) 0.00 4.43
Times Interest Earned Times Interest Earned (Qtr) 0.00 4.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -42.64
EBIT Margin % EBIT Margin % (Qtr) 0.00 -131.12
EBT Margin % EBT Margin % (Qtr) 0.00 -64.70
Gross Margin % Gross Margin % (Qtr) 0.00 30.93
Net Profit Margin % Net Margin % (Qtr) 0.00 -65.71