It Tech Packaging, Inc. (NYSE: ITP)

Sector: Basic Materials Industry: Paper & Paper Products CIK: 0001358190
Market Cap 2.25 Mn
P/B 0.01
P/E -0.21
P/S 0.03
ROIC (Qtr) -7.75
Div Yield % 0.00
Rev 1y % (Qtr) 2.07
Total Debt (Qtr) 10.19 Mn
Debt/Equity (Qtr) 0.07
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About

IT Tech Packaging, Inc. (ITP), a company based in Nevada, operates primarily in the paper making industry in China. The company is publicly traded on the NASDAQ stock exchange under the symbol ITP. ITP's operations are primarily conducted by its subsidiaries and through contractual arrangements with Hebei Baoding Dongfang Paper Milling Company Limited, known as Dongfang Paper. ITP's main business activities revolve around the production and distribution of paper products, including digital photo paper, and medical face masks. The company operates...

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Investment thesis

Bull case

  • Strong tangible asset base of 175.70M provides 17.24x coverage of total debt 10.19M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 3.82M exceeds capital expenditure of 40245 by 94.83x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 175.70M provides 10.28x coverage of working capital 17.10M, indicating strong operational backing.
  • Tangible assets of 175.70M provide robust 13.43x coverage of other current liabilities 13.08M, indicating strong asset backing.
  • Retained earnings of 66.88M provide full 13.43x coverage of long-term debt 4.98M, indicating strong internal capital position.

Bear case

  • Operating cash flow of 3.86M barely covers its investment activities of (40245), with a coverage ratio of -95.83, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating earnings of (9.92M) show weak coverage of depreciation charges of 14.54M, with a -0.68 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 3.82M represents just -6.85x of debt issuance (557259), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 14.54M relative to operating cash flow of 3.86M, which is 3.77x suggests significant maintenance capital requirements affecting free cash flow.
  • Retained earnings of 66.88M provide limited buffer against comprehensive income items of (11.16M), which is -5.99x, indicating elevated exposure to market risks.

Effect of Fourth Quarter Event Type Breakdown of Revenue (2024)

Subsegments Consolidation Items Breakdown of Revenue (2024)

Peer comparison

Companies in the Paper & Paper Products
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SUZ Suzano S.A. 13.57 Bn 5.54 1.48 18.56 Bn
2 SLVM Sylvamo Corp 2.07 Bn 17.58 0.57 0.81 Bn
3 MAGN Magnera Corp 0.49 Bn -3.69 0.15 1.98 Bn
4 CLW Clearwater Paper Corp 0.28 Bn 1.98 0.18 0.34 Bn
5 MERC Mercer International Inc. 0.14 Bn -0.28 0.07 1.61 Bn
6 ITP It Tech Packaging, Inc. 0.00 Bn -0.21 0.03 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.03 0.52
EV to Cash from Ops. EV/CFO 1.29 31.57
EV to Debt EV to Debt 0.49 1.42
EV to EBIT EV/EBIT -0.50 14.32
EV to EBITDA EV/EBITDA 1.08 5.50
EV to Free Cash Flow [EV/FCF] EV/FCF 1.31 2.55
EV to Market Cap EV to Market Cap 2.21 3.68
EV to Revenue EV/Rev 0.06 0.59
Price to Book Value [P/B] P/B 0.01 1.28
Price to Earnings [P/E] P/E -0.21 3.49
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -7.86
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 6.42
Dividend per Basic Share Div per Share (Qtr) 0.00 0.33
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 9.15
Interest Coverage Int. cover (Qtr) -16.63 0.06
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 99.70 14.26
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 86.39 21.24
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -5.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -16.04 -165.64
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -20.17 132.21
EBIT Growth (1y) % EBIT 1y % (Qtr) -21.35 -132.43
EBT Growth (1y) % EBT 1y % (Qtr) -17.05 853.95
EPS Growth (1y) % EPS 1y % (Qtr) -4.08 120.07
FCF Growth (1y) % FCF 1y % (Qtr) 174.33 -94.28
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -23.02 -21.66
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.45 0.76
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.49 0.50
Current Ratio Curr Ratio (Qtr) 1.92 2.37
Debt to Equity Ratio Debt/Equity (Qtr) 0.07 4.86
Interest Cover Ratio Int Coverage (Qtr) -16.63 0.06
Times Interest Earned Times Interest Earned (Qtr) -16.63 0.06
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.90 17.55
EBIT Margin % EBIT Margin % (Qtr) -12.57 47.08
EBT Margin % EBT Margin % (Qtr) -13.32 1.88
Gross Margin % Gross Margin % (Qtr) 5.70 12.55
Net Profit Margin % Net Margin % (Qtr) -13.90 -0.58