Mannatech Inc (NASDAQ: MTEX)

Sector: Consumer Defensive Industry: Food Distribution CIK: 0001056358
Market Cap 13.79 Mn
P/B 1.98
P/E -8.33
P/S 0.12
ROIC (Qtr) 3.33
Div Yield % 0.00
Rev 1y % (Qtr) -8.08
Total Debt (Qtr) 8.10 Mn
Debt/Equity (Qtr) 1.17
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About

Mannatech, Incorporated, often referred to as Mannatech, operates in the wellness industry, providing innovative and high-quality nutritional supplements, skin care and anti-aging products, and weight-management solutions. The company's operations span across three major regions: the Americas, Europe/Middle East/Africa, and Asia/Pacific. Mannatech's primary business activities revolve around the development, production, and distribution of a wide range of products that promote health and wellness. These products are divided into five categories:...

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Investment thesis

Bull case

  • Healthy cash reserves of 7.69M provide 3.78x coverage of short-term debt 2.03M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 33.92M provides 4.19x coverage of total debt 8.10M, indicating robust asset backing and low credit risk.
  • Tangible assets of 33.92M provide exceptional 14.81x coverage of deferred revenue 2.29M, showing strong service capability backing.
  • Operating cash flow of (2.89M) fully covers other non-current liabilities (888000) by 3.26x, showing strong long-term stability.
  • Robust tangible asset base of 33.92M provides 13.14x coverage of working capital 2.58M, indicating strong operational backing.

Bear case

  • Operating cash flow of (2.89M) provides insufficient coverage of deferred revenue obligations of 2.29M, which is -1.26x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (2.89M) shows concerning coverage of stock compensation expenses of 369000, with a -7.84 ratio indicating potential earnings quality issues.
  • Free cash flow of (3.95M) provides weak coverage of capital expenditures of 1.06M, with a -3.73 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (2.89M) provides minimal -2.02x coverage of tax expenses of 1.43M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 139000 show weak coverage of depreciation charges of 2.80M, with a 0.05 ratio indicating high capital intensity and potential reinvestment needs.

Consolidation Items Breakdown of Revenue (2024)

Consolidation Items Breakdown of Revenue (2024)

Peer comparison

Companies in the Food Distribution
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SYY Sysco Corp 52.49 Bn 48.75 1.21 14.97 Bn
2 USFD US Foods Holding Corp. 22.03 Bn 32.59 0.56 5.37 Bn
3 PFGC Performance Food Group Co 15.24 Bn 44.17 0.23 7.99 Bn
4 CHEF Chefs' Warehouse, Inc. 2.62 Bn 35.11 0.65 0.95 Bn
5 UNFI United Natural Foods Inc 2.38 Bn -23.56 0.07 3.47 Bn
6 ANDE Andersons, Inc. 1.88 Bn 20.94 0.34 0.77 Bn
7 AVO Mission Produce, Inc. 1.03 Bn 27.23 0.74 0.20 Bn
8 CVGW Calavo Growers Inc 0.45 Bn -33.31 0.43 0.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.42 1.05
EV to Cash from Ops. EV/CFO -4.87 34.23
EV to Debt EV to Debt 1.74 13.37
EV to EBIT EV/EBIT 101.30 164.56
EV to EBITDA EV/EBITDA 4.15 4.40
EV to Free Cash Flow [EV/FCF] EV/FCF -3.56 22.08
EV to Market Cap EV to Market Cap 1.02 1.45
EV to Revenue EV/Rev 0.13 0.53
Price to Book Value [P/B] P/B 1.98 2.85
Price to Earnings [P/E] P/E -8.33 13.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.57
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 21.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.44
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.21
Interest Coverage Int. cover (Qtr) 0.38 7.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -73.93 -12.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -41.24 35.81
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 32.53
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 183.35 65.49
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 7.82 -8.59
EBIT Growth (1y) % EBIT 1y % (Qtr) 117.20 21.40
EBT Growth (1y) % EBT 1y % (Qtr) 77.63 -278.84
EPS Growth (1y) % EPS 1y % (Qtr) -6.17 -67.04
FCF Growth (1y) % FCF 1y % (Qtr) -820.22 82.95
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -9.13 1.59
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 3.26 2.79
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.39 0.34
Current Ratio Curr Ratio (Qtr) 1.13 2.65
Debt to Equity Ratio Debt/Equity (Qtr) 1.17 1.41
Interest Cover Ratio Int Coverage (Qtr) 0.38 7.20
Times Interest Earned Times Interest Earned (Qtr) 0.38 7.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.70 4.45
EBIT Margin % EBIT Margin % (Qtr) 0.13 8.39
EBT Margin % EBT Margin % (Qtr) -0.20 4.17
Gross Margin % Gross Margin % (Qtr) 76.30 24.60
Net Profit Margin % Net Margin % (Qtr) -1.50 3.22