Aurora Mobile Ltd (NASDAQ: JG)

Sector: Technology Industry: Software - Infrastructure CIK: 0001737339
Market Cap 42.82 Mn
P/B 4.66
P/E -83.49
P/S 0.84
ROIC (Qtr) 7.81
Div Yield % 0.00
Rev 1y % (Qtr) 14.95
Total Debt (Qtr) 2.28 Mn
Debt/Equity (Qtr) 0.25

About

Aurora Mobile Ltd, also known as JG, is a leading provider of customer engagement and marketing technology services, primarily operating in mainland China. The company's mission is to enhance productivity for businesses and society by leveraging mobile big data to generate actionable insights and knowledge. Aurora Mobile's primary business activities revolve around providing developer services, which offer core in-app functionalities to mobile app developers in China. These services include push notification, instant messaging, analytics, sharing,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 13.03M provide 22.82x coverage of short-term debt 571067.42, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 47.60M provides 20.91x coverage of total debt 2.28M, indicating robust asset backing and low credit risk.
  • Cash position of 13.03M provides exceptional 37.18x coverage of minority interest expenses 350561.80, indicating strong liquidity.
  • Long-term investments of 15.88M provide solid 9.31x coverage of long-term debt 1.70M, indicating strategic financial planning.
  • Cash reserves of 13.03M provide comfortable 50.16x coverage of tax obligations 259831.46, showing strong fiscal management.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 14.15M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 23.36M, which is 0x, raising concerns about future service delivery capabilities.
  • Tax assets of 1404.49 provide limited offset against tax liabilities of 259831.46, which is 0.01x, indicating potential future cash flow pressure from tax obligations.
  • Operating cash flow of 0 provides minimal -0x coverage of tax expenses of (84971.91), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Retained earnings of (140.21M) provide limited buffer against comprehensive income items of 2.71M, which is -51.68x, indicating elevated exposure to market risks.

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.03 2.69
EV to Cash from Ops. EV/CFO -1.56 28.91
EV to Debt EV to Debt -0.80 19.83
EV to EBIT EV/EBIT 3.13 -9.95
EV to EBITDA EV/EBITDA -6.76 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF -3.25 26.09
EV to Market Cap EV to Market Cap -0.04 0.36
EV to Revenue EV/Rev -0.04 -9.34
Price to Book Value [P/B] P/B 4.66 3.88
Price to Earnings [P/E] P/E -83.49 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 1.68
Interest Coverage Int. cover (Qtr) -36.34 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -8.23 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 84.54 25.27
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 82.84 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 82.55 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 86.22 67.50
FCF Growth (1y) % FCF Growth (1y) % 0.00 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 16.19 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.13 0.67
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.34 1.22
Current Ratio Curr Ratio (Qtr) 0.73 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.25 -0.96
Interest Cover Ratio Int Coverage (Qtr) -36.34 -14.20
Times Interest Earned Times Interest Earned (Qtr) -36.34 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -548.16
EBIT Margin % EBIT Margin % (Qtr) -8.13 -199.84
EBT Margin % EBT Margin % (Qtr) -1.17 -607.20
Gross Margin % Gross Margin % (Qtr) 65.80 51.88
Net Profit Margin % Net Margin % (Qtr) -1.00 -610.00