Noah Holdings Ltd (NYSE: NOAH)

Sector: Financial Services Industry: Asset Management CIK: 0001499543
Market Cap 847.10 Mn
P/B 0.61
P/E 9.20
P/S 2.38
ROIC (Qtr) 39.92
Div Yield % 0.00
Rev 1y % (Qtr) -7.43
Total Debt (Qtr) 8.38 Mn
Debt/Equity (Qtr) 0.01
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About

Noah Holdings Ltd, known by its ticker symbol NOAH, is a prominent player in the wealth management industry, providing services to high net worth (HNW) investors. The company, established in August 2005 in the Cayman Islands, has its primary operations in China and offers a unique ecosystem of investment opportunities to Mandarin-speaking HNW investors. Noah Holdings Ltd's primary business activities revolve around comprehensive one-stop advisory services on global investment and asset allocation. The company's business model is structured around...

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Investment thesis

Bull case

  • Strong tangible asset base of 1.62B provides 193.61x coverage of total debt 8.38M, indicating robust asset backing and low credit risk.
  • Tangible assets of 1.62B provide exceptional 159.90x coverage of deferred revenue 10.14M, showing strong service capability backing.
  • Cash position of 539.81M provides exceptional 751.85x coverage of minority interest expenses 717977.53, indicating strong liquidity.
  • Long-term investments of 316.75M provide solid 37.82x coverage of long-term debt 8.38M, indicating strategic financial planning.
  • Cash reserves of 539.81M provide robust 2.87x coverage of current liabilities 187.86M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 10.14M, which is 0x, raising concerns about future service delivery capabilities.
  • Long-term investments of 316.75M represent a high 0.91x of fixed assets 347.86M, indicating potential overexposure to financial assets versus operational capabilities.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 40.50M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating cash flow of 0 barely covers operating expenses of (1.21M) with a -0 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • R&D investment of 0 represents just 0x of SG&A expenses of 76.11M, indicating potential underinvestment in innovation relative to administrative overhead.

Geographical Breakdown of Revenue (2024)

Timing of Transfer of Good or Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Asset Management
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BLK BlackRock, Inc. 199.59 Bn 85.40 21.98 15.04 Bn
2 BN BROOKFIELD Corp /ON/ 103.94 Bn 31.52 5.64 262.97 Bn
3 AMP Ameriprise Financial Inc 88.69 Bn 55.02 7.20 5.89 Bn
4 BX Blackstone Inc. 88.51 Bn 49.39 10.93 12.89 Bn
5 KKR KKR & Co. Inc. 55.86 Bn 28.33 13.23 53.12 Bn
6 STT State Street Corp 46.52 Bn 21.77 3.91 34.72 Bn
7 NTRS Northern Trust Corp 34.14 Bn 33.31 6.71 15.64 Bn
8 RJF Raymond James Financial Inc 32.89 Bn 37.63 4.14 5.10 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.03 0.94
EV to Cash from Ops. EV/CFO 0.96 41.10
EV to Debt EV to Debt 6.06 15.28
EV to EBIT EV/EBIT 0.38 23.47
EV to EBITDA EV/EBITDA 0.42 47.80
EV to Free Cash Flow [EV/FCF] EV/FCF 1.21 38.62
EV to Market Cap EV to Market Cap 0.06 7.81
EV to Revenue EV/Rev 0.14 27.38
Price to Book Value [P/B] P/B 0.61 2.34
Price to Earnings [P/E] P/E 9.20 11.81
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 4.66
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 -5.56
Dividend per Basic Share Div per Share (Qtr) 0.00 1.73
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 49.83
Interest Coverage Int. cover (Qtr) 0.00 25.16
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -35.10
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 11.68 15.43
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.65
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 12.63 -90.82
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 35.24
EBIT Growth (1y) % EBIT 1y % (Qtr) 19.78 -22.13
EBT Growth (1y) % EBT 1y % (Qtr) 19.78 -163.05
EPS Growth (1y) % EPS Growth (1y) % 0.00 -20.61
FCF Growth (1y) % FCF Growth (1y) % 0.00 220.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -13.76 -53.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.03 0.22
Cash Payout Ratio Cash Payout Ratio 0.00 0.36
Cash Ratio Cash Ratio (Qtr) 2.87 0.38
Current Ratio Curr Ratio (Qtr) 4.77 0.86
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.70
Interest Cover Ratio Int Coverage (Qtr) 0.00 25.16
Times Interest Earned Times Interest Earned (Qtr) 0.00 25.16
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -114.76
EBIT Margin % EBIT Margin % (Qtr) 265.82 -127.24
EBT Margin % EBT Margin % (Qtr) 37.33 -150.97
Gross Margin % Gross Margin % (Qtr) 49.50 67.88
Net Profit Margin % Net Margin % (Qtr) 25.90 -148.68