MOVING iMAGE TECHNOLOGIES INC. (NYSE: MITQ)

Sector: Technology Industry: Communication Equipment CIK: 0001770236
Market Cap 6.83 Mn
P/B 1.27
P/E -16.50
P/S 0.37
ROIC (Qtr) -10.71
Div Yield % 0.00
Rev 1y % (Qtr) 6.28
Total Debt (Qtr) 1.09 Mn
Debt/Equity (Qtr) 0.20

About

Moving iMage Technologies, Inc., often recognized by its ticker symbol MITQ, is a prominent player in the technology, product, and service provision industry for movie theater operators and sports and entertainment venues. The company, which was established in June 2020, has rapidly grown to become a key contributor in its sector. Moving iMage Technologies operates in two primary segments: cinema and sports and entertainment. In the cinema segment, the company offers a range of products and services to movie theater operators, including project...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 5.55M provide 23.61x coverage of short-term debt 235000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 10.93M provides 10.01x coverage of total debt 1.09M, indicating robust asset backing and low credit risk.
  • Tangible assets of 10.93M provide exceptional 151.76x coverage of deferred revenue 72000, showing strong service capability backing.
  • Operating cash flow of 302000 provides strong 4.19x coverage of deferred revenue 72000, indicating service delivery capability.
  • Tangible assets of 10.93M provide robust 5.72x coverage of other current liabilities 1.91M, indicating strong asset backing.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 190000, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 302000 shows concerning coverage of stock compensation expenses of 100000, with a 3.02 ratio indicating potential earnings quality issues.
  • Operating earnings of (414000) show weak coverage of depreciation charges of 320000, with a -1.29 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 320000 relative to operating cash flow of 302000, which is 1.06x suggests significant maintenance capital requirements affecting free cash flow.
  • R&D investment of 190000 represents just 0.04x of SG&A expenses of 5.35M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Communication Equipment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CSCO Cisco Systems, Inc. 306.02 Bn 29.63 5.30 28.09 Bn
2 MSI Motorola Solutions, Inc. 63.92 Bn 30.21 5.65 9.81 Bn
3 HPE Hewlett Packard Enterprise Co 35.43 Bn -600.50 1.03 22.37 Bn
4 UI Ubiquiti Inc. 33.47 Bn 42.27 12.14 0.17 Bn
5 CIEN Ciena Corp 33.16 Bn 268.82 6.95 1.58 Bn
6 LITE Lumentum Holdings Inc. 25.28 Bn 224.75 13.73 3.28 Bn
7 ASTS AST SpaceMobile, Inc. 19.88 Bn -65.43 1,072.82 0.72 Bn
8 ZBRA Zebra Technologies Corp 12.46 Bn 24.33 2.37 2.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.20 2.22
EV to Cash from Ops. EV/CFO 7.49 10.78
EV to Debt EV to Debt 2.07 25.00
EV to EBIT EV/EBIT -5.46 32.18
EV to EBITDA EV/EBITDA -6.50 10.60
EV to Free Cash Flow [EV/FCF] EV/FCF 7.49 -3.32
EV to Market Cap EV to Market Cap 0.33 1.17
EV to Revenue EV/Rev 0.12 27.87
Price to Book Value [P/B] P/B 1.27 5.35
Price to Earnings [P/E] P/E -16.50 2.67
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.91
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -25.01
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.46
Interest Coverage Int. cover (Qtr) 0.00 -12.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -73.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 5.76 463.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.39
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 77.45 204.95
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 79.20 -1.04
EBIT Growth (1y) % EBIT 1y % (Qtr) 77.45 238.24
EBT Growth (1y) % EBT 1y % (Qtr) 77.45 173.82
EPS Growth (1y) % EPS 1y % (Qtr) 76.47 8.68
FCF Growth (1y) % FCF 1y % (Qtr) 147.78 20.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.11 41.66
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.64 0.76
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 1.10 1.20
Current Ratio Curr Ratio (Qtr) 1.96 2.69
Debt to Equity Ratio Debt/Equity (Qtr) 0.20 0.43
Interest Cover Ratio Int Coverage (Qtr) 0.00 -12.93
Times Interest Earned Times Interest Earned (Qtr) 0.00 -12.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -0.50 -40.66
EBIT Margin % EBIT Margin % (Qtr) -2.24 -52.32
EBT Margin % EBT Margin % (Qtr) -2.24 -59.46
Gross Margin % Gross Margin % (Qtr) 26.40 39.35
Net Profit Margin % Net Margin % (Qtr) -2.20 -60.72