Network-1 Technologies, Inc. (NYSE: NTIP)

Sector: Industrials Industry: Specialty Business Services CIK: 0001065078
Market Cap 32.61 Mn
P/B 0.80
P/E -12.91
P/S 217.39
ROIC (Qtr) -7.04
Div Yield % 7.04
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
Add ratio to table...

About

Investment thesis

Bull case

  • Short-term investments of 29.39M provide solid 157.16x coverage of other current liabilities 187000, indicating strong liquidity.
  • Tangible assets of 39.52M provide robust 211.33x coverage of other current liabilities 187000, indicating strong asset backing.
  • Cash reserves of 7.71M provide robust 18.94x coverage of current liabilities 407000, indicating strong short-term solvency.
  • Strong cash position of 7.71M provides 41.22x coverage of other current liabilities 187000, indicating excellent liquidity.
  • Cash reserves of 7.71M provide solid 73.41x coverage of other non-current liabilities 105000, indicating strong liquidity.

Bear case

  • Operating cash flow of (997000) barely covers its investment activities of (2.81M), with a coverage ratio of 0.36, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (997000) provides thin coverage of dividend payments of (2.30M) with a 0.43 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • The company's operating cash flow of (997000) shows concerning coverage of stock compensation expenses of 313000, with a -3.19 ratio indicating potential earnings quality issues.
  • Short-term investments of 29.39M significantly exceed cash reserves of 7.71M, which is 3.81x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Free cash flow of (1.41M) provides weak coverage of capital expenditures of 415000, with a -3.40 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Specialty Business Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CTAS Cintas Corp 120.08 Bn 556.91 33.85 3.24 Bn
2 RELX Relx Plc 56.19 Bn 20.01 4.34 9.82 Bn
3 TRI Thomson Reuters Corp /Can/ 37.42 Bn 24.91 5.00 2.44 Bn
4 CPRT Copart Inc 36.25 Bn 22.74 7.79 0.10 Bn
5 RBA Rb Global Inc. 19.20 Bn 49.09 4.24 4.21 Bn
6 ULS UL Solutions Inc. 14.12 Bn 43.32 4.92 0.74 Bn
7 GPN Global Payments Inc 11.52 Bn 284.78 8.66 16.20 Bn
8 ARMK Aramark 10.37 Bn 32.72 0.55 6.57 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.47 2.48
EV to Cash from Ops. EV/CFO -19.24 30.22
EV to Debt EV to Debt 0.00 31.08
EV to EBIT EV/EBIT -6.71 94.66
EV to EBITDA EV/EBITDA -5.80 18.37
EV to Free Cash Flow [EV/FCF] EV/FCF -13.59 -20.73
EV to Market Cap EV to Market Cap 0.59 178.66
EV to Revenue EV/Rev 127.90 8.12
Price to Book Value [P/B] P/B 0.80 5.37
Price to Earnings [P/E] P/E -12.91 65.19
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -1.10 -15,800.59
Dividend Payout Ratio % Div Payout % (Qtr) -90.90 10.14
Dividend per Basic Share Div per Share (Qtr) 0.10 0.35
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -161.29 7.65
Interest Coverage Interest Coverage 0.00 30.46
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -178.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -46.15 155.14
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 5.38
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -75.17 -34.92
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -36.40 -86.28
EBIT Growth (1y) % EBIT 1y % (Qtr) -46.17 -22.62
EBT Growth (1y) % EBT 1y % (Qtr) -46.17 -287.35
EPS Growth (1y) % EPS 1y % (Qtr) -83.33 -118.47
FCF Growth (1y) % FCF 1y % (Qtr) -453.88 -146.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -91.08 2.63
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.84
Cash Payout Ratio Cash Payout (Qtr) -3.95 -0.03
Cash Ratio Cash Ratio (Qtr) 18.94 1.15
Current Ratio Curr Ratio (Qtr) 91.56 4.12
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.92
Interest Cover Ratio Interest Cover Ratio 0.00 30.46
Times Interest Earned Times Interest Earned 0.00 30.46
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1,877.30 -33.89
EBIT Margin % EBIT Margin % (Qtr) -1,906.00 -43.32
EBT Margin % EBT Margin % (Qtr) -1,906.00 -44.88
Gross Margin % Gross Margin % (Qtr) 72.00 39.81
Net Profit Margin % Net Margin % (Qtr) -1,684.00 -41.60