Mays J W Inc (NASDAQ: MAYS)

Sector: Real Estate Industry: Real Estate Services CIK: 0000054187
Market Cap 77.48 Mn
P/B 1.48
P/E -155.92
P/S 3.49
ROIC (Qtr) -0.60
Div Yield % 0.00
Rev 1y % (Qtr) -5.19
Total Debt (Qtr) 28.49 Mn
Debt/Equity (Qtr) 0.54
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About

Investment thesis

Bull case

  • Strong tangible asset base of 88.71M provides 3.11x coverage of total debt 28.49M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 2.64M provides exceptional 61.02x coverage of interest expenses 43267, showing strong debt service capability.
  • Retained earnings of 48.19M represent substantial 0.92x of equity 52.43M, indicating strong internal capital generation.
  • Cash position of 3.23M fully covers payables of 2.77M by 1.16x, showing strong vendor relationship management.
  • Tangible assets of 88.71M provide robust 23.27x coverage of receivables 3.81M, showing strong asset quality.

Bear case

  • Operating cash flow of 2.64M barely covers its investment activities of (2.34M), with a coverage ratio of -1.13, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 2.64M provides minimal -12.57x coverage of tax expenses of (210000), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (663657) show weak coverage of depreciation charges of 2.34M, with a -0.28 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 296728 provides weak coverage of capital expenditures of 2.34M, with a 0.13 ratio suggesting additional external financing needs for growth initiatives.
  • Free cash flow of 296728 represents just -0.82x of debt issuance (359671), 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. 42.12 Bn 36.40 1.04 9.99 Bn
2 BEKE KE Holdings Inc. 19.37 Bn 39.77 1.33 2.96 Bn
3 CSGP Costar Group, Inc. 18.57 Bn 914.80 6.08 1.18 Bn
4 JLL Jones Lang Lasalle Inc 13.60 Bn 21.53 0.54 3.48 Bn
5 FSV FirstService Corp 7.02 Bn 48.37 1.28 1.38 Bn
6 CIGI Colliers International Group Inc. 5.59 Bn 54.27 1.01 2.29 Bn
7 COMP Compass, Inc. 5.18 Bn -91.82 0.78 0.48 Bn
8 OPEN Opendoor Technologies Inc. 3.12 Bn -9.84 0.66 1.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.16 1.18
EV to Cash from Ops. EV/CFO 39.01 -6.57
EV to Debt EV to Debt 3.61 5.19
EV to EBIT EV/EBIT -155.19 4.86
EV to EBITDA EV/EBITDA 62.59 13.56
EV to Free Cash Flow [EV/FCF] EV/FCF 347.10 -11.14
EV to Market Cap EV to Market Cap 1.33 7.70
EV to Revenue EV/Rev 4.64 3.49
Price to Book Value [P/B] P/B 1.48 1.76
Price to Earnings [P/E] P/E -155.92 40.59
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.36
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -7.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.46
Interest Coverage Int. cover (Qtr) -15.34 -2.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 10.94 -12,527.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -1.91 24.62
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.26
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -354.84 10.86
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -5.10 33.08
EBIT Growth (1y) % EBIT 1y % (Qtr) -360.34 19.37
EBT Growth (1y) % EBT 1y % (Qtr) -168.42 28.48
EPS Growth (1y) % EPS 1y % (Qtr) -225.00 29.29
FCF Growth (1y) % FCF 1y % (Qtr) 125.77 67.74
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -6.07 33.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.25 1.44
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.01
Cash Ratio Cash Ratio (Qtr) 0.00 1.45
Current Ratio Curr Ratio (Qtr) 0.00 2.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.54 -0.07
Interest Cover Ratio Int Coverage (Qtr) -15.34 -2.20
Times Interest Earned Times Interest Earned (Qtr) -15.34 -2.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.60 -120.34
EBIT Margin % EBIT Margin % (Qtr) -2.99 -135.17
EBT Margin % EBT Margin % (Qtr) -3.19 -142.98
Gross Margin % Gross Margin % (Qtr) 27.90 32.99
Net Profit Margin % Net Margin % (Qtr) -2.20 -138.31