La Rosa Holdings Corp. (NASDAQ: LRHC)

Sector: Real Estate Industry: Real Estate Services CIK: 0001879403
Market Cap 24,591.12
P/B 0.02
P/E 0.00
P/S 0.00
ROIC (Qtr) -118.48
Div Yield % 0.00
Rev 1y % (Qtr) 3.18
Total Debt (Qtr) 10.61 Mn
Debt/Equity (Qtr) 6.81

About

La Rosa Holdings Corp., often recognized by its ticker symbol LRHC, operates in the real estate industry, specifically in five agent-centric, technology-integrated, cloud-based, multi-service segments. The company's primary business, La Rosa Realty, LLC, has consistently ranked among the Top 75 Residential Real Estate Firms in the United States from 2016 to 2020 by the National Association of Realtors. La Rosa Holdings' operations span across various business activities within the real estate sector. These include residential and commercial real...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 6.39M provide 9.63x coverage of short-term debt 663488, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 8.42M provide exceptional 116.18x coverage of deferred revenue 72485, showing strong service capability backing.
  • Operating cash flow of (7.30M) fully covers other non-current liabilities (23336) by 312.69x, showing strong long-term stability.
  • Strong free cash flow of (7.30M) provides 82.41x coverage of acquisition spending (88539), indicating disciplined M&A strategy.
  • Cash position of 6.39M provides exceptional 63.84x coverage of minority interest expenses 100084, indicating strong liquidity.

Bear case

  • Cash reserves of 6.39M provide limited coverage of acquisition spending of (88539), which is -72.16x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (7.30M) provides insufficient coverage of deferred revenue obligations of 72485, which is -100.67x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (7.30M) shows concerning coverage of stock compensation expenses of 5.42M, with a -1.35 ratio indicating potential earnings quality issues.
  • Operating earnings of (27.34M) show weak coverage of depreciation charges of 1.51M, with a -18.08 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (7.30M) represents just -1.83x of debt issuance 3.98M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Real Estate Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CBRE Cbre Group, Inc. 51.14 Bn 41.65 1.30 9.48 Bn
2 CSGP Costar Group, Inc. 26.47 Bn 1,304.00 8.66 1.18 Bn
3 BEKE KE Holdings Inc. 21.08 Bn 43.29 1.45 2.96 Bn
4 JLL Jones Lang Lasalle Inc 16.90 Bn 26.75 0.67 3.48 Bn
5 FSV FirstService Corp 7.01 Bn 56.92 1.78 1.51 Bn
6 COMP Compass, Inc. 6.69 Bn -118.64 1.01 0.48 Bn
7 CIGI Colliers International Group Inc. 5.39 Bn 69.70 2.00 2.50 Bn
8 OPEN Opendoor Technologies Inc. 4.15 Bn -13.09 0.88 1.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.14 1.34
EV to Cash from Ops. EV/CFO -0.40 2.97
EV to Debt EV to Debt 0.28 6.15
EV to EBIT EV/EBIT -0.11 5.23
EV to EBITDA EV/EBITDA -0.22 18.71
EV to Free Cash Flow [EV/FCF] EV/FCF -0.40 -9.39
EV to Market Cap EV to Market Cap 119.21 4.27
EV to Revenue EV/Rev 0.04 3.62
Price to Book Value [P/B] P/B 0.02 2.10
Price to Earnings [P/E] P/E 0.00 45.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -47.46 0.38
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -6.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.42
Interest Coverage Int. cover (Qtr) -48.19 -2.22
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -12,525.88
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 61.35 23.84
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -79.12 4.69
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -5.15 26.73
EBIT Growth (1y) % EBIT 1y % (Qtr) -79.12 12.80
EBT Growth (1y) % EBT 1y % (Qtr) -80.59 21.27
EPS Growth (1y) % EPS 1y % (Qtr) -170.53 22.42
FCF Growth (1y) % FCF 1y % (Qtr) -115.78 54.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 24.50 39.11
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 3.63 1.45
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.01
Cash Ratio Cash Ratio (Qtr) 1.07 1.45
Current Ratio Curr Ratio (Qtr) 1.21 2.16
Debt to Equity Ratio Debt/Equity (Qtr) 6.81 -0.06
Interest Cover Ratio Int Coverage (Qtr) -48.19 -2.22
Times Interest Earned Times Interest Earned (Qtr) -48.19 -2.22
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -32.80 -121.98
EBIT Margin % EBIT Margin % (Qtr) -34.76 -136.76
EBT Margin % EBT Margin % (Qtr) -35.48 -144.54
Gross Margin % Gross Margin % (Qtr) 8.50 32.87
Net Profit Margin % Net Margin % (Qtr) -36.20 -139.89