KORE Group Holdings, Inc. (NYSE: KORE)

Sector: Communication Services Industry: Telecom Services CIK: 0001855457
Market Cap 96.90 Mn
P/B -0.67
P/E -1.39
P/S 0.34
ROIC (Qtr) -11.13
Div Yield % 0.00
Rev 1y % (Qtr) -0.33
Total Debt (Qtr) 304.32 Mn
Debt/Equity (Qtr) -2.09
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About

KORE Group Holdings, Inc., or KORE, operates in the Internet of Things (IoT) connectivity and solutions industry, with its stock symbol being KORE on the NASDAQ. The company is a prominent name in the IoT space, providing advanced connectivity services, location-based services, device solutions, and managed and professional services. These services are instrumental in the development and support of IoT solutions and applications. In its operations, KORE mainly generates revenue from two segments: Connectivity and IoT Solutions. The Connectivity...

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Investment thesis

Bull case

  • Healthy cash reserves of 19.60M provide 6.40x coverage of short-term debt 3.06M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 100.97M provide exceptional 11.48x coverage of deferred revenue 8.80M, showing strong service capability backing.
  • Robust tangible asset base of 100.97M provides 7.74x coverage of working capital 13.04M, indicating strong operational backing.
  • Retained earnings of (605.85M) represent substantial 4.16x of equity (145.71M), indicating strong internal capital generation.
  • Operating cash flow of 10.88M provides strong 12.65x coverage of tax liabilities 860000, showing excellent fiscal position.

Bear case

  • Operating cash flow of 10.88M barely covers its investment activities of (8.26M), with a coverage ratio of -1.32, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 10.88M provides insufficient coverage of deferred revenue obligations of 8.80M, which is 1.24x, raising concerns about future service delivery capabilities.
  • High receivables of 46.18M relative to inventory of 7.36M (6.27 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 10.88M shows concerning coverage of stock compensation expenses of 8.48M, with a 1.28 ratio indicating potential earnings quality issues.
  • Operating earnings of (22.35M) show weak coverage of depreciation charges of 57.50M, with a -0.39 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Telecom Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMUS T-Mobile US, Inc. 247.58 Bn 22.52 2.80 118.74 Bn
2 T At&T Inc. 210.50 Bn 12.86 1.15 155.04 Bn
3 VZ Verizon Communications Inc 202.20 Bn 11.00 1.54 181.64 Bn
4 CMCSA Comcast Corp 180.83 Bn 58.43 5.08 98.94 Bn
5 VOD Vodafone Group Public Ltd Co 44.88 Bn 3.20 0.62 60.54 Bn
6 CHT Chunghwa Telecom Co Ltd 33.41 Bn 26.87 4.32 1.20 Bn
7 SATS EchoStar CORP 32.60 Bn -2.52 2.15 30.58 Bn
8 CHTR Charter Communications, Inc. /Mo/ 32.03 Bn 6.42 0.58 96.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.90 0.87
EV to Cash from Ops. EV/CFO 34.96 7.73
EV to Debt EV to Debt 1.25 40.31
EV to EBIT EV/EBIT -17.02 2.24
EV to EBITDA EV/EBITDA 11.69 2.53
EV to Free Cash Flow [EV/FCF] EV/FCF 145.44 33.34
EV to Market Cap EV to Market Cap 3.92 1.71
EV to Revenue EV/Rev 1.33 5.12
Price to Book Value [P/B] P/B -0.67 2.16
Price to Earnings [P/E] P/E -1.39 76.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.17
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.79
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.04
Interest Coverage Int. cover (Qtr) -0.42 -2.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 50.85 19.27
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 3.63 61.85
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -2.07
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 80.03 373.65
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 178.06 192.47
EBIT Growth (1y) % EBIT 1y % (Qtr) 78.85 814.56
EBT Growth (1y) % EBT 1y % (Qtr) 51.99 -29.03
EPS Growth (1y) % EPS 1y % (Qtr) 55.47 141.81
FCF Growth (1y) % FCF 1y % (Qtr) 112.66 78.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.43 -10.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.67 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 0.28 0.68
Current Ratio Curr Ratio (Qtr) 1.19 1.56
Debt to Equity Ratio Debt/Equity (Qtr) -2.09 -0.46
Interest Cover Ratio Int Coverage (Qtr) -0.42 -2.53
Times Interest Earned Times Interest Earned (Qtr) -0.42 -2.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 12.30 46.49
EBIT Margin % EBIT Margin % (Qtr) -7.83 -51.60
EBT Margin % EBT Margin % (Qtr) -26.41 27.73
Gross Margin % Gross Margin % (Qtr) 55.30 55.49
Net Profit Margin % Net Margin % (Qtr) -24.50 26.33