Nextnav Inc. (NASDAQ: NN)

Sector: Technology Industry: Software - Infrastructure CIK: 0001865631
Market Cap 2.08 Bn
P/B -94.08
P/E -13.55
P/S 375.68
ROIC (Qtr) -28.64
Div Yield % 0.00
Rev 1y % (Qtr) -44.80
Total Debt (Qtr) 245.81 Mn
Debt/Equity (Qtr) -11.11
Add ratio to table...

About

Investment thesis

Bull case

  • Healthy cash reserves of 89.99M provide 32.52x coverage of short-term debt 2.77M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 201.59M provide exceptional 477.69x coverage of deferred revenue 422000, showing strong service capability backing.
  • Tangible assets of 201.59M provide robust 17.79x coverage of other current liabilities 11.33M, indicating strong asset backing.
  • Short-term investments of 77.58M provide solid 6.85x coverage of other current liabilities 11.33M, indicating strong liquidity.
  • Retained earnings of (983.40M) represent substantial 44.46x of equity (22.12M), indicating strong internal capital generation.

Bear case

  • Operating cash flow of (46.62M) barely covers its investment activities of (56.77M), with a coverage ratio of 0.82, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (56.77M) provide weak support for R&D spending of 17.93M, which is -3.17x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (46.62M) provides insufficient coverage of deferred revenue obligations of 422000, which is -110.46x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (46.62M) shows concerning coverage of stock compensation expenses of 15.23M, with a -3.06 ratio indicating potential earnings quality issues.
  • Free cash flow of (46.85M) provides weak coverage of capital expenditures of 233000, with a -201.07 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 2,948.93 Bn 24.73 9.65 57.61 Bn
2 ORCL Oracle Corp 734.55 Bn 67.24 19.76 124.39 Bn
3 PLTR Palantir Technologies Inc. 313.28 Bn 192.78 70.00 0.23 Bn
4 PANW Palo Alto Networks Inc 109.38 Bn 97.90 11.45 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 102.48 Bn -326.20 22.45 0.82 Bn
6 SNPS Synopsys Inc 69.14 Bn 51.90 9.80 14.29 Bn
7 NET Cloudflare, Inc. 66.52 Bn -645.60 33.04 3.50 Bn
8 FTNT Fortinet, Inc. 62.73 Bn 33.48 9.57 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 8.68 2.10
EV to Cash from Ops. EV/CFO -49.01 3.92
EV to Debt EV to Debt 9.29 -2.43
EV to EBIT EV/EBIT -16.12 11.57
EV to EBITDA EV/EBITDA -37.32 18.19
EV to Free Cash Flow [EV/FCF] EV/FCF -48.77 19.98
EV to Market Cap EV to Market Cap 1.10 1.27
EV to Revenue EV/Rev 412.46 29.29
Price to Book Value [P/B] P/B -94.08 4.97
Price to Earnings [P/E] P/E -13.55 -12.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.21
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.11
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.67
Interest Coverage Int. cover (Qtr) -12.19 -16.04
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 40.56 -403.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 32.53 223.80
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -83.76 585.97
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -1.90 5.89
EBIT Growth (1y) % EBIT 1y % (Qtr) -83.97 27.96
EBT Growth (1y) % EBT 1y % (Qtr) -78.75 20.61
EPS Growth (1y) % EPS 1y % (Qtr) -57.33 144.77
FCF Growth (1y) % FCF 1y % (Qtr) -25.65 50.30
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 46.23 45.98
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.65
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 6.03 1.23
Current Ratio Curr Ratio (Qtr) 11.54 2.63
Debt to Equity Ratio Debt/Equity (Qtr) -11.11 0.73
Interest Cover Ratio Int Coverage (Qtr) -12.19 -16.04
Times Interest Earned Times Interest Earned (Qtr) -12.19 -16.04
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -2,420.80 -549.97
EBIT Margin % EBIT Margin % (Qtr) -2,559.09 -240.33
EBT Margin % EBT Margin % (Qtr) -2,769.09 -608.68
Gross Margin % Gross Margin % (Qtr) -64.60 51.14
Net Profit Margin % Net Margin % (Qtr) -2,772.40 -611.28