Nukkleus Inc. (NASDAQ: NUKK)

Sector: Technology Industry: Software - Application CIK: 0001787518
Market Cap 9.27 Mn
P/B -0.30
P/E -0.13
P/S 0.00
ROIC (Qtr) 29.69
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 1.72 Mn
Debt/Equity (Qtr) -0.06

About

Nukkleus Inc., a financial technology company with the ticker symbol NUKK, operates in the rapidly evolving industry of blockchain-enabled technology solutions. The company, headquartered in Delaware, was formed in 2019 following a business combination between Brilliant Acquisition Corporation and Old Nukk, a company that had been in operation since 2013. Nukkleus' main business activities revolve around its two primary business units: Nukkleus Technology and Digital RFQ. Nukkleus Technology is a full-service transactions technology and advisory...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 7.61M provide 4.63x coverage of short-term debt 1.65M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 13.29M provides 7.72x coverage of total debt 1.72M, indicating robust asset backing and low credit risk.
  • Retained earnings of (111.46M) represent substantial 3.66x of equity (30.42M), indicating strong internal capital generation.
  • Short-term investments of 4.53M provide 2.75x coverage of short-term debt 1.65M, showing strong liquidity management.
  • Cash position of 7.61M fully covers payables of 320488 by 23.75x, showing strong vendor relationship management.

Bear case

  • Cash reserves of 7.61M provide limited coverage of acquisition spending of (4.50M), which is -1.69x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (5.54M) shows concerning coverage of stock compensation expenses of 183508, with a -30.19 ratio indicating potential earnings quality issues.
  • Free cash flow of (5.56M) provides weak coverage of capital expenditures of 18690, with a -297.39 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (70.27M) show weak coverage of depreciation charges of 2807, with a -25032.11 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (5.54M) barely covers operating expenses of 9.16M with a -0.60 ratio, suggesting thin operational efficiency margins and limited flexibility.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 281.21 Bn 33.75 6.55 10.73 Bn
2 CRM Salesforce, Inc. 248.88 Bn 34.46 6.17 11.14 Bn
3 SHOP Shopify Inc. 217.18 Bn 121.94 20.30 1.12 Bn
4 UBER Uber Technologies, Inc 182.87 Bn 10.99 3.69 12.19 Bn
5 INTU Intuit Inc. 182.36 Bn 44.28 9.38 6.78 Bn
6 NOW ServiceNow, Inc. 151.53 Bn 87.54 11.96 2.40 Bn
7 ADBE Adobe Inc. 146.69 Bn 21.08 6.33 6.64 Bn
8 ADP Automatic Data Processing Inc 108.05 Bn 26.12 5.17 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.75 2.68
EV to Cash from Ops. EV/CFO -1.80 13.34
EV to Debt EV to Debt 5.81 57.60
EV to EBIT EV/EBIT -0.14 19.20
EV to EBITDA EV/EBITDA -0.84 15.11
EV to Free Cash Flow [EV/FCF] EV/FCF -1.80 14.78
EV to Market Cap EV to Market Cap 1.08 -93.16
EV to Revenue EV/Rev 0.00 4.63
Price to Book Value [P/B] P/B -0.30 4.29
Price to Earnings [P/E] P/E -0.13 -132.44
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) -77.08 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 2,040,507.24 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -764.16 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -66.77 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -764.16 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -735.55 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) -562.07 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -45.56 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.17 3.75
Current Ratio Curr Ratio (Qtr) 0.30 8.16
Debt to Equity Ratio Debt/Equity (Qtr) -0.06 0.17
Interest Cover Ratio Int Coverage (Qtr) -77.08 -52.32
Times Interest Earned Times Interest Earned (Qtr) -77.08 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -100.06
EBIT Margin % EBIT Margin % (Qtr) 0.00 -164.24
EBT Margin % EBT Margin % (Qtr) 0.00 -116.94
Gross Margin % Gross Margin % (Qtr) 0.00 58.20
Net Profit Margin % Net Margin % (Qtr) 0.00 -121.65