Intelligent Protection Management Corp. (NASDAQ: IPM)

Sector: Technology Industry: Software - Application CIK: 0001355839
Market Cap 17.98 Mn
P/B 0.96
P/E -2.64
P/S 1.55
ROIC (Qtr) -21.14
Div Yield % 0.00
Rev 1y % (Qtr) 2,164.91
Total Debt (Qtr) 1.35 Mn
Debt/Equity (Qtr) 0.07

About

Paltalk, Inc., with ticker symbol PALT, is a communications software innovator that operates in the technology industry. The company is renowned for developing and operating a network of consumer applications that enable users to engage in real-time multimedia social activities, such as video conversations, messaging, and online card games. With a presence in over 180 countries, Paltalk's diverse customer base relies on its applications for various purposes, including education, entertainment, and social interaction. Paltalk's revenue generation...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 8.35M provide 10.59x coverage of short-term debt 788138, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 13.88M provides 10.26x coverage of total debt 1.35M, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 13.88M provides 3.29x coverage of working capital 4.22M, indicating strong operational backing.
  • Strong cash position of 8.35M provides 1.82x coverage of other current liabilities 4.58M, indicating excellent liquidity.
  • Cash reserves of 8.35M provide robust 1.09x coverage of current liabilities 7.65M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (478409) barely covers its investment activities of (4.28M), with a coverage ratio of 0.11, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (4.28M) provide weak support for R&D spending of (3.42M), which is 1.25x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 8.35M provide limited coverage of acquisition spending of (4M), which is -2.09x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (478409) provides insufficient coverage of deferred revenue obligations of 3.50M, which is -0.14x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (478409) shows concerning coverage of stock compensation expenses of 316587, with a -1.51 ratio indicating potential earnings quality issues.

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 0.41 2.65
EV to Cash from Ops. EV/CFO -23.31 13.37
EV to Debt EV to Debt 8.25 57.69
EV to EBIT EV/EBIT -1.18 19.12
EV to EBITDA EV/EBITDA -4.02 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF -14.70 14.69
EV to Market Cap EV to Market Cap 0.62 -92.28
EV to Revenue EV/Rev 0.96 4.60
Price to Book Value [P/B] P/B 0.96 4.26
Price to Earnings [P/E] P/E -2.64 -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) 24.43 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -30.77 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -85.76 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 41.72 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -138.50 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -171.84 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) -102.94 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 54.05 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 217.06 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.43 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.09 3.75
Current Ratio Curr Ratio (Qtr) 1.55 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.07 0.17
Interest Cover Ratio Int Coverage (Qtr) 24.43 -52.32
Times Interest Earned Times Interest Earned (Qtr) 24.43 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -59.00 -100.06
EBIT Margin % EBIT Margin % (Qtr) -81.58 -164.24
EBT Margin % EBT Margin % (Qtr) -78.24 -116.94
Gross Margin % Gross Margin % (Qtr) 46.10 58.20
Net Profit Margin % Net Margin % (Qtr) -58.60 -121.65