Jerash Holdings (US), Inc. (NASDAQ: JRSH)

Sector: Consumer Cyclical Industry: Apparel Manufacturing CIK: 0001696558
Market Cap 31.61 Mn
P/B 0.50
P/E 50.83
P/S 0.22
ROIC (Qtr) 3.30
Div Yield % 8.20
Rev 1y % (Qtr) 4.30
Total Debt (Qtr) 5.60 Mn
Debt/Equity (Qtr) 0.09

About

Jerash Holdings (US), Inc., or simply Jerash Holdings, operates in the manufacturing industry, with its ticker symbol being JRSH. The company is based in the Hashemite Kingdom of Jordan, where it conducts the majority of its business activities. Jerash Holdings specializes in the production of customized ready-made sportswear and outerwear, along with personal protective equipment (PPE). The company's main business activities revolve around the manufacturing of sportswear and outerwear, encompassing a wide range of products such as jackets, polo...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 12M provide 2.19x coverage of short-term debt 5.49M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 82.84M provides 14.79x coverage of total debt 5.60M, indicating robust asset backing and low credit risk.
  • Tangible assets of 82.84M provide exceptional 119.83x coverage of deferred revenue 691264, showing strong service capability backing.
  • Operating cash flow of (743714) fully covers other non-current liabilities (691144) by 1.08x, showing strong long-term stability.
  • Retained earnings of 37.91M provide full 347.59x coverage of long-term debt 109056, indicating strong internal capital position.

Bear case

  • Operating cash flow of (743714) barely covers its investment activities of (2.49M), with a coverage ratio of 0.30, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (743714) provides thin coverage of dividend payments of (2.50M) with a 0.30 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating cash flow of (743714) provides insufficient coverage of deferred revenue obligations of 691264, which is -1.08x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (743714) shows concerning coverage of stock compensation expenses of 1.27M, with a -0.59 ratio indicating potential earnings quality issues.
  • Free cash flow of (3.01M) provides weak coverage of capital expenditures of 2.27M, with a -1.33 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Apparel Manufacturing
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 RL Ralph Lauren Corp 21.81 Bn 25.53 2.88 2.85 Bn
2 GIL Gildan Activewear Inc. 9.45 Bn 19.89 2.81 1.87 Bn
3 LEVI Levi Strauss & Co 8.22 Bn 13.64 1.29 2.29 Bn
4 VFC V F Corp 7.10 Bn 78.61 0.74 5.79 Bn
5 KTB Kontoor Brands, Inc. 3.40 Bn 15.62 1.20 1.50 Bn
6 PVH Pvh Corp. /De/ 3.39 Bn 9.96 0.38 4.26 Bn
7 COLM Columbia Sportswear Co 3.12 Bn 16.69 0.91 0.48 Bn
8 ZGN Ermenegildo Zegna N.V. 2.55 Bn 43.66 1.13 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.37 1.01
EV to Cash from Ops. EV/CFO -41.84 8.80
EV to Debt EV to Debt 5.56 4.30
EV to EBIT EV/EBIT 8.98 -5.31
EV to EBITDA EV/EBITDA 4.73 -69.89
EV to Free Cash Flow [EV/FCF] EV/FCF -10.34 15.55
EV to Market Cap EV to Market Cap 0.98 1.81
EV to Revenue EV/Rev 0.21 1.14
Price to Book Value [P/B] P/B 0.50 1.78
Price to Earnings [P/E] P/E 50.83 14.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.25 -1.16
Dividend Payout Ratio % Div Payout % (Qtr) 333.30 -3.95
Dividend per Basic Share Div per Share (Qtr) 0.20 0.51
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -84.39 20.82
Interest Coverage Int. cover (Qtr) 2.18 26.98
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -0.74 -10.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -26.54 10.71
Dividend Growth (1y) % Div 1y % (Qtr) 33.33 2.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 156.91 -88.95
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1,104.14 11.99
EBIT Growth (1y) % EBIT 1y % (Qtr) 284.29 -49.71
EBT Growth (1y) % EBT 1y % (Qtr) 156.60 -181.63
EPS Growth (1y) % EPS 1y % (Qtr) 120.69 -218.58
FCF Growth (1y) % FCF 1y % (Qtr) 45.45 -29.63
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 30.24 6.94
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.75 1.16
Cash Payout Ratio Cash Payout (Qtr) 1.64 0.15
Cash Ratio Cash Ratio (Qtr) 0.59 0.28
Current Ratio Curr Ratio (Qtr) 2.73 1.99
Debt to Equity Ratio Debt/Equity (Qtr) 0.09 -1.63
Interest Cover Ratio Int Coverage (Qtr) 2.18 26.98
Times Interest Earned Times Interest Earned (Qtr) 2.18 26.98
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.80 -6.73
EBIT Margin % EBIT Margin % (Qtr) 2.37 -10.67
EBT Margin % EBT Margin % (Qtr) 1.28 -17.44
Gross Margin % Gross Margin % (Qtr) 15.70 49.34
Net Profit Margin % Net Margin % (Qtr) 0.40 -18.93