MDB Capital Holdings, LLC (NASDAQ: MDBH)

Sector: Financial Services Industry: Capital Markets CIK: 0001934642
Market Cap 27.09 Mn
P/B 0.45
P/E 2.37
P/S 20.49
ROIC (Qtr) -38.76
Div Yield % 0.00
Rev 1y % (Qtr) 303.65
Total Debt (Qtr) 635,421.00
Debt/Equity (Qtr) 0.01

About

MDB Capital Holdings, LLC (MDB) is a company that operates in the fintech and venture capital industry. It specializes in financing startups, partnering with co-founders, and fostering significant value creation. The company achieves this through a group of companies that form a unified foundational platform, with Public Ventures, LLC being one of them. Public Ventures focuses on community-driven micro and small-cap financings, enabling companies to scale through initial financing stages and facilitating their transition into public markets. MDB's...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 61.51M provides 96.80x coverage of total debt 635421, indicating robust asset backing and low credit risk.
  • Robust free cash flow of (5.12M) exceeds capital expenditure of (620602) by 8.25x, indicating strong organic growth funding capability.
  • Cash position of 15.93M provides exceptional 10.45x coverage of minority interest expenses 1.52M, indicating strong liquidity.
  • Operating cash flow of (5.74M) provides strong 76.54x coverage of operating expenses (75000), showing operational efficiency.
  • Operating cash flow of (5.74M) provides strong 9.25x coverage of capital expenditure (620602), enabling organic growth.

Bear case

  • Operating cash flow of (5.74M) barely covers its investment activities of 2.82M, with a coverage ratio of -2.03, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of (5.74M) shows concerning coverage of stock compensation expenses of 11.78M, with a -0.49 ratio indicating potential earnings quality issues.
  • R&D investment of 229408 represents just 0.01x of SG&A expenses of 24.99M, indicating potential underinvestment in innovation relative to administrative overhead.
  • Operating cash flow of (5.74M) shows concerning coverage of minority interest expenses of 1.52M, which is -3.77x, suggesting complex corporate structure risks.
  • R&D spending of 229408 represents just -0.37x of capital expenditure (620602), indicating potential underinvestment in innovation relative to physical assets.

Peer comparison

Companies in the Capital Markets
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GS Goldman Sachs Group Inc 284.23 Bn 17.94 4.84 911.32 Bn
2 MS Morgan Stanley 279.63 Bn 17.97 4.05 353.12 Bn
3 SCHW Schwab Charles Corp 179.33 Bn 23.09 7.83 27.59 Bn
4 HOOD Robinhood Markets, Inc. 106.92 Bn 48.73 25.43 0.00 Bn
5 CRCL Circle Internet Group, Inc. 40.97 Bn 261.00 24.22 0.15 Bn
6 IBKR Interactive Brokers Group, Inc. 28.23 Bn 30.79 4.75 28.43 Bn
7 LPLA LPL Financial Holdings Inc. 27.60 Bn 33.13 1.77 7.52 Bn
8 FUTU Futu Holdings Ltd 22.89 Bn 18.13 8.54 1.75 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.16 1.07
EV to Cash from Ops. EV/CFO -1.72 15.33
EV to Debt EV to Debt 15.54 21.89
EV to EBIT EV/EBIT 0.86 -0.80
EV to EBITDA EV/EBITDA -0.42 11.20
EV to Free Cash Flow [EV/FCF] EV/FCF -1.93 43.08
EV to Market Cap EV to Market Cap 0.36 -0.05
EV to Revenue EV/Rev 7.47 12.82
Price to Book Value [P/B] P/B 0.45 3.09
Price to Earnings [P/E] P/E 2.37 6.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 4.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 10.37
Dividend per Basic Share Div per Share (Qtr) 0.00 0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -8.68
Interest Coverage Int. cover (Qtr) 160.51 37.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 438.48 -12,429.64
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -12.77 1,588.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 146.41 270.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 15.62 333.57
EBIT Growth (1y) % EBIT 1y % (Qtr) 145.94 3,103.22
EBT Growth (1y) % EBT 1y % (Qtr) 145.65 3,039.53
EPS Growth (1y) % EPS 1y % (Qtr) 149.83 24.25
FCF Growth (1y) % FCF 1y % (Qtr) 52.78 -80.08
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -31.78 51.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.08
Cash Ratio Cash Ratio 0.00 2.01
Current Ratio Current Ratio 0.00 3.47
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 1.46
Interest Cover Ratio Int Coverage (Qtr) 160.51 37.53
Times Interest Earned Times Interest Earned (Qtr) 160.51 37.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 878.40 76.68
EBIT Margin % EBIT Margin % (Qtr) 869.67 46.81
EBT Margin % EBT Margin % (Qtr) 864.25 58.57
Gross Margin % Gross Margin % (Qtr) 100.00 53.60
Net Profit Margin % Net Margin % (Qtr) 864.20 29.41