iShares iBonds Dec 2021 Term Treasury ETF (: IBTA)

Sector: Technology Industry: Software - Application CIK: 0001100663
Market Cap 524.75 Mn
P/B 1.59
P/E 6.50
P/S 1.49
ROIC (Qtr) 1.10
Div Yield % 0.00
Rev 1y % (Qtr) -15.58
Total Debt (Qtr) 25.34 Mn
Debt/Equity (Qtr) 0.08

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 89.46M provides robust 3.53x coverage of total debt 25.34M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 547.07M provides 21.59x coverage of total debt 25.34M, indicating robust asset backing and low credit risk.
  • Tangible assets of 547.07M provide exceptional 116.65x coverage of deferred revenue 4.69M, showing strong service capability backing.
  • Robust free cash flow of 63.78M exceeds capital expenditure of 25.67M by 2.48x, indicating strong organic growth funding capability.
  • Operating cash flow of 89.46M provides strong 19.07x coverage of deferred revenue 4.69M, indicating service delivery capability.

Bear case

  • Operating cash flow of 89.46M barely covers its investment activities of (25.67M), with a coverage ratio of -3.48, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (25.67M) provide weak support for R&D spending of 62.66M, which is -0.41x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 89.46M shows concerning coverage of stock compensation expenses of 44.13M, with a 2.03 ratio indicating potential earnings quality issues.
  • Operating cash flow of 89.46M provides minimal -1.65x coverage of tax expenses of (54.15M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 18.81M show weak coverage of depreciation charges of 7.77M, with a 2.42 ratio indicating high capital intensity and potential reinvestment needs.

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 0.53 2.65
EV to Cash from Ops. EV/CFO 3.34 13.37
EV to Debt EV to Debt 11.80 57.69
EV to EBIT EV/EBIT 15.90 19.12
EV to EBITDA EV/EBITDA 13.88 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 4.69 14.69
EV to Market Cap EV to Market Cap 0.57 -92.28
EV to Revenue EV/Rev 0.85 4.60
Price to Book Value [P/B] P/B 1.59 4.26
Price to Earnings [P/E] P/E 6.50 -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) -2.41 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -166.29 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -34.55 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 349.91 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -55.38 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -44.27 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -10.82 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 45.02 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -40.92 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -11.31 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.62 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.08 3.75
Current Ratio Curr Ratio (Qtr) 2.21 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.08 0.17
Interest Cover Ratio Int Coverage (Qtr) -2.41 -52.32
Times Interest Earned Times Interest Earned (Qtr) -2.41 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.50 -100.06
EBIT Margin % EBIT Margin % (Qtr) 5.34 -164.24
EBT Margin % EBT Margin % (Qtr) 7.55 -116.94
Gross Margin % Gross Margin % (Qtr) 80.90 58.20
Net Profit Margin % Net Margin % (Qtr) 22.90 -121.65