Inuvo, Inc. (NYSE: INUV)

Sector: Technology Industry: Software - Application CIK: 0000829323
Market Cap 37.20 Mn
P/B 3.57
P/E -8.53
P/S 0.38
ROIC (Qtr) -38.30
Div Yield % 0.00
Rev 1y % (Qtr) 0.89
Total Debt (Qtr) 4.19 Mn
Debt/Equity (Qtr) 0.40

About

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 16.52M provides 3.94x coverage of total debt 4.19M, indicating robust asset backing and low credit risk.
  • Cash reserves of 3.38M provide solid 32.10x coverage of other non-current liabilities 105294, indicating strong liquidity.
  • Cash reserves of 3.38M provide comfortable 32.10x coverage of tax obligations 105294, showing strong fiscal management.

Bear case

  • Operating cash flow of (1.48M) barely covers its investment activities of (1.69M), with a coverage ratio of 0.87, 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 (1.48M) shows concerning coverage of stock compensation expenses of 1.26M, with a -1.18 ratio indicating potential earnings quality issues.
  • Free cash flow of (3.17M) provides weak coverage of capital expenditures of 1.69M, with a -1.87 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (4.09M) show weak coverage of depreciation charges of 2.69M, with a -1.52 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (1.48M) provides minimal -138x coverage of tax expenses of 10706, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Related Party Transaction Breakdown of Revenue (2024)

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 1.20 2.65
EV to Cash from Ops. EV/CFO -24.33 13.37
EV to Debt EV to Debt 8.58 57.69
EV to EBIT EV/EBIT -8.79 19.12
EV to EBITDA EV/EBITDA -13.94 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF -11.35 14.69
EV to Market Cap EV to Market Cap 0.97 -92.28
EV to Revenue EV/Rev 0.37 4.60
Price to Book Value [P/B] P/B 3.57 4.26
Price to Earnings [P/E] P/E -8.53 -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) -15.59 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 7.89 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 30.65 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 49.72 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 45.08 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 49.91 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 47.70 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 52.24 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 21.44 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.17 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 3.28 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.18 3.75
Current Ratio Curr Ratio (Qtr) 0.74 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.40 0.17
Interest Cover Ratio Int Coverage (Qtr) -15.59 -52.32
Times Interest Earned Times Interest Earned (Qtr) -15.59 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1.40 -100.06
EBIT Margin % EBIT Margin % (Qtr) -4.16 -164.24
EBT Margin % EBT Margin % (Qtr) -4.43 -116.94
Gross Margin % Gross Margin % (Qtr) 78.00 58.20
Net Profit Margin % Net Margin % (Qtr) -4.40 -121.65