Next Technology Holding Inc. (NASDAQ: NXTT)

Sector: Technology Industry: Software - Application CIK: 0001784970
Market Cap 3.73 Mn
P/B 0.01
P/E 0.01
P/S 1.04
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Next Technology Holding Inc., or NXTT, operates in the software development and digital asset industries. The company's main business activities involve providing AI-enabled software development services and acquiring and holding bitcoin. These services include developing, designing, and implementing various SAAS software solutions for businesses across different industries. Next Technology Holding Inc. generates revenue through its software development services and bitcoin acquisition. Its primary products and services include software development,...

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Price action

Investment thesis

Bull case

  • Tangible assets of 679.54M provide exceptional 201.61x coverage of deferred revenue 3.37M, showing strong service capability backing.
  • Strong operating cash flow of 3.74M provides 2.84x coverage of SG&A expenses 1.32M, showing efficient operational cost management.
  • Short-term investments of 666.80M provide solid 190.46x coverage of other current liabilities 3.50M, indicating strong liquidity.
  • Tangible assets of 679.54M provide robust 194.10x coverage of other current liabilities 3.50M, indicating strong asset backing.
  • Retained earnings of 304.22M provide strong 86.90x coverage of other current liabilities 3.50M, indicating earnings quality.

Bear case

  • Short-term investments of 666.80M significantly exceed cash reserves of 12.36M, which is 53.96x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Operating cash flow of 3.74M provides insufficient coverage of deferred revenue obligations of 3.37M, which is 1.11x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 3.74M shows concerning coverage of stock compensation expenses of 44.37M, with a 0.08 ratio indicating potential earnings quality issues.
  • Operating cash flow of 3.74M provides minimal 0.04x coverage of tax expenses of 95.81M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Short-term investments of 666.80M represent 0.99x of working capital 673.59M, suggesting potentially excessive financial asset allocation versus operational needs.

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 0.00 2.68
EV to Cash from Ops. EV/CFO 0.82 13.34
EV to Debt EV to Debt 0.00 57.60
EV to EBIT EV/EBIT 0.01 19.20
EV to EBITDA EV/EBITDA -0.07 15.11
EV to Free Cash Flow [EV/FCF] EV/FCF 0.82 14.78
EV to Market Cap EV to Market Cap 0.82 -93.16
EV to Revenue EV/Rev 0.85 4.63
Price to Book Value [P/B] P/B 0.01 4.29
Price to Earnings [P/E] P/E 0.01 -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 Interest Coverage 0.00 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1,748.86 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.00 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -1,281.55 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.00 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 0.00 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) -74.88 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 574.51 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 838.42 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 2.08 3.75
Current Ratio Curr Ratio (Qtr) 114.15 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.17
Interest Cover Ratio Interest Cover Ratio 0.00 -52.32
Times Interest Earned Times Interest Earned 0.00 -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) 52.30 58.20
Net Profit Margin % Net Margin % (Qtr) 0.00 -121.65