JFB Construction Holdings (NASDAQ: JFB)

Sector: Real Estate Industry: Real Estate - Development CIK: 0002024306
Market Cap 162.17 Mn
P/B 13.93
P/E -53.12
P/S 7.47
ROIC (Qtr) -28.32
Div Yield % 0.00
Rev 1y % (Qtr) -37.03
Total Debt (Qtr) 725,858.00
Debt/Equity (Qtr) 0.06
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About

Investment thesis

Bull case

  • Healthy cash reserves of 6.60M provide 9.09x coverage of short-term debt 725858, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 13.95M provides 19.22x coverage of total debt 725858, indicating robust asset backing and low credit risk.
  • Tangible assets of 13.95M provide exceptional 77.77x coverage of deferred revenue 179427, showing strong service capability backing.
  • Operating cash flow of (3.50M) fully covers other non-current liabilities (179427) by 19.48x, showing strong long-term stability.
  • Free cash flow of (3.61M) provides excellent 386.08x coverage of dividends (9347), indicating sustainable shareholder returns.

Bear case

  • Operating cash flow of (3.50M) provides insufficient coverage of deferred revenue obligations of 179427, which is -19.48x, raising concerns about future service delivery capabilities.
  • Free cash flow of (3.61M) provides weak coverage of capital expenditures of 113270, with a -31.86 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (3.02M) show weak coverage of depreciation charges of 224555, with a -13.45 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (3.50M) barely covers operating expenses of 305564 with a -11.44 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • High financing cash flow of 7.46M relative to working capital of 9.02M, which is 0.83x suggests concerning dependence on external funding for operational needs.

Peer comparison

Companies in the Real Estate - Development
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VTMX Vesta Real Estate Corporation, S.A.B. de C.V. 11.83 Bn 120.68 43.52 1.45 Bn
2 CCS Century Communities, Inc. 2.20 Bn 14.92 0.53 1.44 Bn
3 FOR Forestar Group Inc. 1.53 Bn 9.16 0.91 0.79 Bn
4 FPH Five Point Holdings, LLC 0.38 Bn 4.01 1.95 0.44 Bn
5 SKYH Sky Harbour Group Corp 0.19 Bn -44.25 7.89 0.35 Bn
6 OZ Belpointe PREP, LLC 0.19 Bn -5.15 26.12 0.26 Bn
7 JFB JFB Construction Holdings 0.16 Bn -53.12 7.47 0.00 Bn
8 SDHC Smith Douglas Homes Corp. 0.16 Bn 14.38 0.16 0.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 11.33 1.43
EV to Cash from Ops. EV/CFO -45.25 3.32
EV to Debt EV to Debt 217.88 296.38
EV to EBIT EV/EBIT -52.37 -7.88
EV to EBITDA EV/EBITDA -51.57 -0.77
EV to Free Cash Flow [EV/FCF] EV/FCF -43.83 -6.68
EV to Market Cap EV to Market Cap 0.98 1.29
EV to Revenue EV/Rev 7.29 10.93
Price to Book Value [P/B] P/B 13.93 2.09
Price to Earnings [P/E] P/E -53.12 6.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -326.59 -24.67
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 23.30
Dividend per Basic Share Div per Share (Qtr) 0.00 0.13
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -3.13
Interest Coverage Int. cover (Qtr) -92.50 -12.63
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 85.11 -104.71
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 144.71 29.52
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.47
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -297.43 -5.81
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -297.55 -36.06
EBIT Growth (1y) % EBIT 1y % (Qtr) -297.43 7.48
EBT Growth (1y) % EBT 1y % (Qtr) -303.73 -2.06
EPS Growth (1y) % EPS 1y % (Qtr) -268.42 -8.78
FCF Growth (1y) % FCF 1y % (Qtr) -67.58 109.52
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -25.19 34.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.56 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 2.86 0.96
Current Ratio Curr Ratio (Qtr) 4.90 1.61
Debt to Equity Ratio Debt/Equity (Qtr) 0.06 0.97
Interest Cover Ratio Int Coverage (Qtr) -92.50 -12.63
Times Interest Earned Times Interest Earned (Qtr) -92.50 -12.63
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -12.90 6.42
EBIT Margin % EBIT Margin % (Qtr) -13.92 35.19
EBT Margin % EBT Margin % (Qtr) -14.07 -40.37
Gross Margin % Gross Margin % (Qtr) 19.70 29.45
Net Profit Margin % Net Margin % (Qtr) -14.10 -51.49