Proficient Auto Logistics, Inc (NASDAQ: PAL)

Sector: Industrials Industry: Integrated Freight & Logistics CIK: 0001998768
Market Cap 196.95 Mn
P/B 0.58
P/E -17.88
P/S 0.47
ROIC (Qtr) -0.97
Div Yield % 0.00
Rev 1y % (Qtr) 24.90
Total Debt (Qtr) 88.81 Mn
Debt/Equity (Qtr) 0.26
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About

Investment thesis

Bull case

  • Robust free cash flow of 26.49M exceeds capital expenditure of 2.14M by 12.40x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 28.63M provides 1.70x coverage of SG&A expenses 16.88M, showing efficient operational cost management.
  • Robust tangible asset base of 209.46M provides 23.35x coverage of working capital 8.97M, indicating strong operational backing.
  • Tangible assets of 209.46M provide robust 7.10x coverage of other current liabilities 29.49M, indicating strong asset backing.
  • Operating cash flow of 28.63M provides strong 17.57x coverage of inventory 1.63M, indicating efficient inventory management.

Bear case

  • Operating cash flow of 28.63M barely covers its investment activities of (14.38M), with a coverage ratio of -1.99, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 20.68M provide limited coverage of acquisition spending of (12.25M), which is -1.69x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 45.92M relative to inventory of 1.63M (28.19 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 28.63M provides minimal -9.35x coverage of tax expenses of (3.06M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (7.03M) show weak coverage of depreciation charges of 39.23M, with a -0.18 ratio indicating high capital intensity and potential reinvestment needs.

Subsegments Consolidation Items Breakdown of Revenue (2024)

Subsegments Consolidation Items Breakdown of Revenue (2024)

Peer comparison

Companies in the Integrated Freight & Logistics
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 FDX Fedex Corp 99.67 Bn 20.28 1.11 37.77 Bn
2 UPS United Parcel Service Inc 98.11 Bn 17.61 1.11 28.59 Bn
3 JBHT Hunt J B Transport Services Inc 28.29 Bn 145.14 7.91 1.60 Bn
4 EXPD Expeditors International Of Washington Inc 22.29 Bn 27.40 2.13 0.56 Bn
5 CHRW C. H. Robinson Worldwide, Inc. 21.34 Bn 36.35 1.31 1.43 Bn
6 ZTO ZTO Express (Cayman) Inc. 20.15 Bn 16.23 3.02 1.74 Bn
7 GXO GXO Logistics, Inc. 7.46 Bn 83.79 0.58 5.50 Bn
8 LSTR Landstar System Inc 5.11 Bn 28.60 1.06 0.13 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.55 1.04
EV to Cash from Ops. EV/CFO 9.73 -0.78
EV to Debt EV to Debt 3.14 -1.98
EV to EBIT EV/EBIT -39.66 10.54
EV to EBITDA EV/EBITDA 8.17 9.04
EV to Free Cash Flow [EV/FCF] EV/FCF 10.52 -2.76
EV to Market Cap EV to Market Cap 1.42 0.62
EV to Revenue EV/Rev 0.67 -0.31
Price to Book Value [P/B] P/B 0.58 4.96
Price to Earnings [P/E] P/E -17.88 15.82
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 14.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 11.81
Interest Coverage Int. cover (Qtr) -1.00 -430.42
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -2,938.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -4.29 139.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.23
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.00 -442.31
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -224.47
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.00 -367.92
EBT Growth (1y) % EBT 1y % (Qtr) 0.00 -191.62
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 -974.30
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 -67.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 1.66
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.82 1.29
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.32 0.97
Current Ratio Curr Ratio (Qtr) 1.14 3.22
Debt to Equity Ratio Debt/Equity (Qtr) 0.26 1.06
Interest Cover Ratio Int Coverage (Qtr) -1.00 -430.42
Times Interest Earned Times Interest Earned (Qtr) -1.00 -430.42
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.70 17.62
EBIT Margin % EBIT Margin % (Qtr) -1.68 24.68
EBT Margin % EBT Margin % (Qtr) -3.36 18.38
Gross Margin % Gross Margin % (Qtr) 18.20 20.25
Net Profit Margin % Net Margin % (Qtr) -2.60 31.04