CO2 Energy Transition Corp. (NASDAQ: NOEM)

Sector: Financial Services Industry: Shell Companies CIK: 0001956648
Market Cap 85.85 Mn
P/B -51.66
P/E 64.56
P/S 0.00
ROIC (Qtr) 16.79
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 11,730.00
Debt/Equity (Qtr) -0.01
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About

Investment thesis

Bull case

  • Healthy cash reserves of 343499 provide 29.28x coverage of short-term debt 11730, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 71.92M provides 6131.47x coverage of total debt 11730, indicating robust asset backing and low credit risk.
  • Tangible assets of 71.92M provide robust 117.72x coverage of other current liabilities 610939, indicating strong asset backing.
  • Retained earnings of (1.66M) represent substantial 1x of equity (1.66M), indicating strong internal capital generation.
  • Tangible assets of 71.92M provide robust 115.51x coverage of current liabilities 622669, showing strong asset backing.

Bear case

  • Operating cash flow of (900105) barely covers its investment activities of 79891, with a coverage ratio of -11.27, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (900105) provides minimal -1.79x coverage of tax expenses of 502337, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Debt issuance of (532500) significantly exceeds working capital of (133753), which is 3.98x, indicating potentially unsustainable leverage for operational funding.
  • Tangible assets of 71.92M provide limited backing for working capital of (133753), which is -537.72x, suggesting increased operational risk in market downturns.
  • Operating cash flow of (900105) is outpaced by equity issuance of 71.13M (-0.01 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Shell Companies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ANSC Agriculture & Natural Solutions Acquisition Corp 493.77 Mn 56.15 0.00 0.84 Mn
2 CCIX Churchill Capital Corp IX/Cayman 395.47 Mn 46.22 0.00 0.00 Mn
3 ALF Centurion Acquisition Corp. 394.73 Mn 32.55 0.00 0.01 Mn
4 GPAT GP-Act III Acquisition Corp. 389.33 Mn 31.65 0.00 0.40 Mn
5 HYAC Haymaker Acquisition Corp. 4 338.26 Mn 38.17 0.00 1.88 Mn
6 SIMA SIM Acquisition Corp. I 328.57 Mn 35.70 0.00 0.00 Mn
7 AFJK Aimei Health Technology Co., Ltd. 303.65 Mn 216.00 0.00 1.66 Mn
8 GRAF Graf Global Corp. 300.58 Mn 34.68 0.00 0.00 Mn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.19 0.95
EV to Cash from Ops. EV/CFO -94.87 18.30
EV to Debt EV to Debt 7,279.81 125,153.88
EV to EBIT EV/EBIT 46.46 34.06
EV to EBITDA EV/EBITDA -238.73 -165.45
EV to Free Cash Flow [EV/FCF] EV/FCF -94.87 18.30
EV to Market Cap EV to Market Cap 0.99 0.63
EV to Revenue EV to Revenue 0.00 0.00
Price to Book Value [P/B] P/B -51.66 -20.50
Price to Earnings [P/E] P/E 64.56 -125.27
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.04
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.00
Interest Coverage Int. cover (Qtr) 304.42 2.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 0.00
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 12,202.97 410.95
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 1,250.60 282.79
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -468.82 -126.98
EBIT Growth (1y) % EBIT 1y % (Qtr) 1,685.27 304.32
EBT Growth (1y) % EBT 1y % (Qtr) 1,680.06 303.65
EPS Growth (1y) % EPS 1y % (Qtr) 420.00 956.13
FCF Growth (1y) % FCF 1y % (Qtr) -808.70 -37.62
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 0.00
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.00
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.55 52.04
Current Ratio Curr Ratio (Qtr) 0.79 4.89
Debt to Equity Ratio Debt/Equity (Qtr) -0.01 -0.27
Interest Cover Ratio Int Coverage (Qtr) 304.42 2.94
Times Interest Earned Times Interest Earned (Qtr) 304.42 2.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 0.00
EBIT Margin % EBIT Margin % 0.00 0.00
EBT Margin % EBT Margin % 0.00 0.00
Gross Margin % Gross Margin % 0.00 0.00
Net Profit Margin % Net Profit Margin % 0.00 0.00