Kvh Industries Inc \De\ (NASDAQ: KVHI)

Sector: Communication Services Industry: Telecom Services CIK: 0001007587
Market Cap 124.12 Mn
P/B 0.95
P/E -10.32
P/S 1.16
ROIC (Qtr) -9.79
Div Yield % 0.00
Rev 1y % (Qtr) -1.79
Total Debt (Qtr) 4.61 Mn
Debt/Equity (Qtr) 0.04
Add ratio to table...

About

KVH Industries Inc., known by its ticker symbol KVHI, is a prominent player in the telecommunications industry, specializing in providing innovative connectivity solutions to maritime customers across the globe. The company's offerings include global high-speed Internet and Voice over Internet Protocol (VoIP) services via satellite, as well as commercially licensed entertainment and value-added cybersecurity, email, and crew internet services for commercial customers in the maritime and hotel markets. KVH Industries operates as a single reportable...

Read more

Investment thesis

Bull case

  • Strong operating cash flow of 14.12M provides robust 3.06x coverage of total debt 4.61M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 72.80M provide 123.19x coverage of short-term debt 591000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 149.74M provides 32.50x coverage of total debt 4.61M, indicating robust asset backing and low credit risk.
  • Tangible assets of 149.74M provide exceptional 111.25x coverage of deferred revenue 1.35M, showing strong service capability backing.
  • Operating cash flow of 14.12M provides strong 10.49x coverage of deferred revenue 1.35M, indicating service delivery capability.

Bear case

  • Operating cash flow of 14.12M barely covers its investment activities of 45.64M, with a coverage ratio of 0.31, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of 24.46M provides weak coverage of capital expenditures of (10.34M), with a -2.37 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (11.58M) show weak coverage of depreciation charges of 11.17M, with a -1.04 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 11.17M relative to operating cash flow of 14.12M, which is 0.79x suggests significant maintenance capital requirements affecting free cash flow.
  • Tax assets of 141000 provide limited offset against tax liabilities of 791000, which is 0.18x, indicating potential future cash flow pressure from tax obligations.

Segments Breakdown of Revenue (2024)

Segments 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 0.46 0.87
EV to Cash from Ops. EV/CFO 4.92 7.73
EV to Debt EV to Debt 15.06 40.31
EV to EBIT EV/EBIT -5.99 2.24
EV to EBITDA EV/EBITDA -30.51 2.53
EV to Free Cash Flow [EV/FCF] EV/FCF 2.84 33.34
EV to Market Cap EV to Market Cap 0.56 1.71
EV to Revenue EV/Rev 0.65 5.12
Price to Book Value [P/B] P/B 0.95 2.16
Price to Earnings [P/E] P/E -10.32 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) 0.00 -2.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 203.07 19.27
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 405.72 61.85
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -2.07
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 36.47 373.65
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 68.87 192.47
EBIT Growth (1y) % EBIT 1y % (Qtr) 37.87 814.56
EBT Growth (1y) % EBT 1y % (Qtr) 37.88 -29.03
EPS Growth (1y) % EPS 1y % (Qtr) 36.73 141.81
FCF Growth (1y) % FCF 1y % (Qtr) 232.94 78.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -11.46 -10.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.71 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 4.79 0.68
Current Ratio Curr Ratio (Qtr) 7.87 1.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 -0.46
Interest Cover Ratio Int Coverage (Qtr) 0.00 -2.53
Times Interest Earned Times Interest Earned (Qtr) 0.00 -2.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -0.40 46.49
EBIT Margin % EBIT Margin % (Qtr) -10.78 -51.60
EBT Margin % EBT Margin % (Qtr) -10.78 27.73
Gross Margin % Gross Margin % (Qtr) 23.80 55.49
Net Profit Margin % Net Margin % (Qtr) -11.20 26.33