Linkage Global Inc (NASDAQ: LGCB)

Sector: Consumer Cyclical Industry: Internet Retail CIK: 0001969401
Market Cap 7.95 Mn
P/B 0.49
P/E -1.08
P/S 1.56
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 3.24 Mn
Debt/Equity (Qtr) 0.20

About

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 21.35M provides 6.59x coverage of total debt 3.24M, indicating robust asset backing and low credit risk.
  • Tangible assets of 21.35M provide exceptional 267.86x coverage of deferred revenue 79711, showing strong service capability backing.
  • Operating cash flow of (4.68M) fully covers other non-current liabilities (79711) by 58.77x, showing strong long-term stability.
  • Short-term investments of 9.49M provide solid 5.51x coverage of other current liabilities 1.72M, indicating strong liquidity.
  • Tangible assets of 21.35M provide robust 12.39x coverage of other current liabilities 1.72M, indicating strong asset backing.

Bear case

  • Operating cash flow of (4.68M) barely covers its investment activities of (9.25M), with a coverage ratio of 0.51, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (9.25M) provide weak support for R&D spending of 585290, which is -15.81x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (4.68M) provides insufficient coverage of deferred revenue obligations of 79711, which is -58.77x, raising concerns about future service delivery capabilities.
  • Short-term investments of 9.49M significantly exceed cash reserves of 734711, which is 12.92x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • High receivables of 5.77M relative to inventory of 2018 (2860.90 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Peer comparison

Companies in the Internet Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AMZN Amazon Com Inc 2,240.82 Bn 28.85 3.13 152.99 Bn
2 BABA Alibaba Group Holding Ltd 376.37 Bn 21.36 2.65 39.55 Bn
3 PDD PDD Holdings Inc. 146.78 Bn 10.22 2.50 1.50 Bn
4 MELI Mercadolibre Inc 99.88 Bn 48.09 3.81 9.88 Bn
5 DASH DoorDash, Inc. 77.19 Bn 89.45 6.11 3.26 Bn
6 SE Sea Ltd 64.15 Bn 45.22 3.05 4.24 Bn
7 JD JD.com, Inc. 40.42 Bn 8.94 0.22 15.74 Bn
8 EBAY Ebay Inc 40.35 Bn 18.49 3.77 7.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.80 1.44
EV to Cash from Ops. EV/CFO -3.63 10.32
EV to Debt EV to Debt 5.25 11.03
EV to EBIT EV/EBIT -3.76 18.24
EV to EBITDA EV/EBITDA -3.92 16.97
EV to Free Cash Flow [EV/FCF] EV/FCF -3.51 15.91
EV to Market Cap EV to Market Cap 2.14 -40.94
EV to Revenue EV/Rev 3.34 -2.40
Price to Book Value [P/B] P/B 0.49 5.28
Price to Earnings [P/E] P/E -1.08 32.69
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -93.84
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 -203.90
Dividend per Basic Share Div per Share (Qtr) 0.00 0.08
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 -3.46
Interest Coverage Interest Coverage -1.86 37.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -39.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -63.28 58.76
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.00
EBIAT Growth (1y) % EBIAT Growth (1y) % -15,943.12 -370.47
EBITDA Growth (1y) % EBITDA Growth (1y) % -1,948.32 -113.32
EBIT Growth (1y) % EBIT Growth (1y) % -43,666.01 -1,110.85
EBT Growth (1y) % EBT Growth (1y) % -4,732.92 -130.57
EPS Growth (1y) % EPS Growth (1y) % -504.76 2.19
FCF Growth (1y) % FCF Growth (1y) % -196.91 -50.73
Gross Profit Growth (1y) % Gross Profit Growth (1y) % -11.15 0.67
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.24 1.16
Cash Payout Ratio Cash Payout Ratio 0.00 -0.04
Cash Ratio Cash Ratio (Qtr) 0.18 2.15
Current Ratio Curr Ratio (Qtr) 5.08 3.66
Debt to Equity Ratio Debt/Equity (Qtr) 0.20 0.49
Interest Cover Ratio Interest Cover Ratio -1.86 37.32
Times Interest Earned Times Interest Earned -1.86 37.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % -83.50 3.67
EBIT Margin % EBIT Margin % -88.77 -28.93
EBT Margin % EBT Margin % -136.62 -42.42
Gross Margin % Gross Margin % 72.60 44.90
Net Profit Margin % Net Profit Margin % -144.50 -42.23