HUYA Inc. (NYSE: HUYA)

Sector: Communication Services Industry: Entertainment CIK: 0001728190
Market Cap 682.59 Mn
P/B 0.96
P/E -29.07
P/S 0.78
ROIC (Qtr) -28.68
Div Yield % 0.00
Rev 1y % (Qtr) 9.79
Total Debt (Qtr) 3.51 Mn
Debt/Equity (Qtr) 0.00

About

HUYA Inc., a prominent player in the Chinese market, is a leading game live streaming platform that has been experiencing significant growth since its inception in 2014. Operating under the ticker symbol "HUYA," the company is recognized for its role in connecting game enthusiasts and providing them with an interactive platform to share their passion for games. HUYA's primary business activities involve providing a platform for users to engage with live streams of various games and other forms of entertainment. The company's offerings extend beyond...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 103.22M provide 33.38x coverage of short-term debt 3.09M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 877.07M provides 250.18x coverage of total debt 3.51M, indicating robust asset backing and low credit risk.
  • Tangible assets of 877.07M provide exceptional 24.10x coverage of deferred revenue 36.40M, showing strong service capability backing.
  • Long-term investments of 63.71M provide solid 153.98x coverage of long-term debt 413764.04, indicating strategic financial planning.
  • Short-term investments of 427.30M provide solid 2.07x coverage of other current liabilities 206.34M, indicating strong liquidity.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 69.79M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 427.30M significantly exceed cash reserves of 103.22M, which is 4.14x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 36.40M, which is 0x, raising concerns about future service delivery capabilities.
  • Retained earnings of (294.29M) provide limited buffer against comprehensive income items of 100.70M, which is -2.92x, indicating elevated exposure to market risks.
  • Short-term investments of 427.30M represent 0.95x of working capital 447.53M, suggesting potentially excessive financial asset allocation versus operational needs.

Peer comparison

Companies in the Entertainment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NFLX Netflix Inc 398.09 Bn 38.16 9.18 14.46 Bn
2 DIS Walt Disney Co 204.13 Bn 16.46 2.16 42.03 Bn
3 WBD Warner Bros. Discovery, Inc. 70.69 Bn 145.75 1.87 33.52 Bn
4 FWONA Liberty Media Corp 53.12 Bn -399.43 13.15 7.04 Bn
5 LYV Live Nation Entertainment, Inc. 33.40 Bn 103.67 1.36 9.39 Bn
6 FOXA Fox Corp 33.26 Bn 16.34 2.02 6.60 Bn
7 PSKY Paramount Skydance Corp 18.94 Bn -1,353.00 0.66 14.73 Bn
8 TKO TKO Group Holdings, Inc. 17.56 Bn 76.76 4.05 4.04 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.04 1.53
EV to Cash from Ops. EV/CFO 2.85 25.10
EV to Debt EV to Debt 10.51 5.03
EV to EBIT EV/EBIT -1.71 165.24
EV to EBITDA EV/EBITDA -2.28 -156.71
EV to Free Cash Flow [EV/FCF] EV/FCF -2.94 72.07
EV to Market Cap EV to Market Cap 0.05 2.12
EV to Revenue EV/Rev 0.04 6.42
Price to Book Value [P/B] P/B 0.96 2.40
Price to Earnings [P/E] P/E -29.07 -114.33
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.03
Dividend Payout Ratio % Div Payout % (Qtr) -1,053.40 -17.28
Dividend per Basic Share Div per Share (Qtr) 0.00 0.14
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 7.73
Interest Coverage Interest Coverage 0.00 -38.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -33.75
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -34.01 248.04
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.52
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -10.94 -100.15
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 -28.24
EBIT Growth (1y) % EBIT 1y % (Qtr) -12.57 -85.91
EBT Growth (1y) % EBT 1y % (Qtr) -12.57 24.10
EPS Growth (1y) % EPS 1y % (Qtr) -21.67 18.31
FCF Growth (1y) % FCF Growth (1y) % 0.00 118.70
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 21.96 30.85
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.13 0.60
Cash Payout Ratio Cash Payout Ratio 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.43 0.45
Current Ratio Curr Ratio (Qtr) 2.85 1.09
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 1.01
Interest Cover Ratio Interest Cover Ratio 0.00 -38.17
Times Interest Earned Times Interest Earned 0.00 -38.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -65.26
EBIT Margin % EBIT Margin % (Qtr) -17.39 -79.53
EBT Margin % EBT Margin % (Qtr) -2.44 -82.47
Gross Margin % Gross Margin % (Qtr) 12.70 35.56
Net Profit Margin % Net Margin % (Qtr) -2.70 -83.18