Aurora Mobile Ltd (JG) Stock Analysis and Metrics

Sector: Technology Industry: Software - Infrastructure CIK: 0001737339

P/B 5.03

P/E -90.17

P/S 0.91

Market Cap 46.25 Mn

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,...

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, and SMS services, among others. They are delivered in the form of software development kits (SDKs) that contain ready-to-use source codes, enabling easy integration into a wide variety of mobile apps.

The company's developer services are constructed upon its proprietary common module JCore, which facilitates the seamless integration of additional and multiple functionalities offered by the company's services. JCore provides key functions such as dynamic loading, logging and uploading error messages, protecting core source code from leakage and tampering, and securing data sharing.

Aurora Mobile's push notification service, JPush, enables developers to deliver notifications across different formats and types of internet access devices. The company's instant messaging service, JMessage, provides stable and reliable chat features for end users. The SMS service, JSMS, allows developers to easily integrate SMS text message functions for authentication and serves as an incremental channel for user communication.

The company's private cloud-based developer services offer customizable services to app developers desiring a more controlled software environment and comprehensive technology and customer support. Aurora Mobile's overseas messaging service platform, EngageLab, is a cloud communication platform that provides omni-channel messaging solutions to global enterprises and developers.

Aurora Mobile's AI-powered data processing platform processes massive amounts of anonymous device-level mobile behavioral data to develop industry-specific solutions. The company believes that its data set, characterized by its volume, variety, velocity, and veracity, is a key differentiator.

In terms of industry position, Aurora Mobile is a leading provider of customer engagement and marketing technology services in mainland China, recognized by awards such as the "2023 Industry Information Technology Application Leading Enterprise" and the "2023 Shenzhen Data Exchange Brand Data Provider" awards.

Aurora Mobile's customers include major internet companies and leading brands in various industries. The company's solutions are used by a cumulative number of approximately 742,000 developers representing over 1.9 million mobile apps in industries like media, entertainment, gaming, financial services, tourism, ecommerce, and education.

The company's competitive advantages include its proprietary technology infrastructure, extensive data set, ability to provide customized solutions, and strategic partnerships with major telecommunications companies.

Stock Price Chart

Analysis

Pros

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.

Cons

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	3,542.10 Bn	33.76	12.06	60.56 Bn
2	ORCL	Oracle Corp	533.93 Bn	34.61	8.75	124.39 Bn
3	PLTR	Palantir Technologies Inc.	437.56 Bn	399.47	112.31	0.24 Bn
4	PANW	Palo Alto Networks Inc	125.16 Bn	112.03	13.10	0.35 Bn
5	CRWD	CrowdStrike Holdings, Inc.	120.85 Bn	-384.67	26.47	0.82 Bn
6	SNPS	Synopsys Inc	71.69 Bn	35.89	11.14	15.14 Bn
7	NET	Cloudflare, Inc.	67.84 Bn	-658.43	33.70	3.50 Bn
8	FTNT	Fortinet, Inc.	63.33 Bn	33.80	9.66	1.00 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	0.03	2.56
EV to Cash from Ops.	1.37	38.32
EV to Debt	0.71	-11.37
EV to EBIT	-2.76	-12.79
EV to EBITDA	5.96	7.72
EV to Free Cash Flow [EV/FCF]	2.86	24.22
EV to Market Cap	0.03	0.58
EV to Revenue	0.03	-35.00
Price to Book Value [P/B]	5.03	3.74
Price to Earnings [P/E]	-90.17	-18.61

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-0.30
Dividend Payout Ratio %	0.00	2.69
Dividend per Basic Share	0.00	0.10
FCF Dividend Payout Ratio %	0.00	1.67
Interest Coverage	-36.34	-13.15

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	0.00	-404.11
Cash and Equivalents Growth (1y) %	-8.23	226.02
Dividend Growth (1y) %	0.00	-0.27
EBIAT Growth (1y) %	84.54	31.15
EBITDA Growth (1y) %	0.00	49.02
EBIT Growth (1y) %	82.84	25.85
EBT Growth (1y) %	82.55	17.82
EPS Growth (1y) %	86.22	70.69
FCF Growth (1y) %	0.00	295.45
Gross Profit Growth (1y) %	16.19	49.96

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.13	0.68
Cash Payout Ratio	0.00	0.02
Cash Ratio	0.34	1.21
Current Ratio	0.73	2.57
Debt to Equity Ratio	0.25	-0.93
Interest Cover Ratio	-36.34	-13.15
Times Interest Earned	-36.34	-13.15

Profitability

Metric	Value	Industry
EBITDA Margin %	0.00	-544.82
EBIT Margin %	-8.13	-197.78
EBT Margin %	-1.17	-602.74
Gross Margin %	65.80	52.06
Net Profit Margin %	-1.00	-605.52

Aurora Mobile Ltd (NASDAQ: JG)