Paranovus Entertainment Technology Ltd. (NASDAQ: PAVS)

Sector: Consumer Defensive Industry: Packaged Foods CIK: 0001751876
Market Cap 4.26 Mn
P/B 0.18
P/E -0.62
P/S 0.34
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 331,736.00
Debt/Equity (Qtr) 0.01
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About

Paranovus Entertainment Technology Ltd., or PAVS, is a holding company based in the Cayman Islands that operates primarily in the technology industry. The company's main business activities are conducted through its wholly-owned subsidiary, 2Lab3, based in the United States. PAVS has a rich history of operating in various sectors, including nutraceuticals and dietary supplements, e-commerce, internet information and advertising, and automobile sales, primarily in China. However, the company has since divested from these businesses, focusing now...

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Investment thesis

Bull case

  • Healthy cash reserves of 412047 provide 2.91x coverage of short-term debt 141725, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 10.12M provides 30.50x coverage of total debt 331736, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 10.12M provides 7.98x coverage of working capital 1.27M, indicating strong operational backing.
  • Short-term investments of 4.80M provide solid 1.54x coverage of other current liabilities 3.12M, indicating strong liquidity.
  • Cash reserves of 412047 provide solid 2.53x coverage of other non-current liabilities 162985, indicating strong liquidity.

Bear case

  • Short-term investments of 4.80M significantly exceed cash reserves of 412047, which is 11.65x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • High receivables of 1.98M relative to inventory of 593907 (3.33 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of (6.48M) show weak coverage of depreciation charges of 1.36M, with a -4.77 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (1.86M) barely covers operating expenses of 4.48M with a -0.42 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Retained earnings of (70.94M) provide limited buffer against comprehensive income items of 2.53M, which is -28.09x, indicating elevated exposure to market risks.

Peer comparison

Companies in the Packaged Foods
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KHC Kraft Heinz Co 28.20 Bn -4.82 1.13 21.22 Bn
2 GIS General Mills Inc 26.99 Bn 20.72 1.54 13.73 Bn
3 JBS Jbs N.V. 17.81 Bn 10.08 0.23 23.92 Bn
4 MKC Mccormick & Co Inc 16.10 Bn 44.21 3.77 4.00 Bn
5 HRL Hormel Foods Corp /De/ 12.37 Bn 18.03 1.34 2.86 Bn
6 SJM J M SMUCKER Co 11.08 Bn 19.60 1.97 7.91 Bn
7 PPC Pilgrims Pride Corp 10.32 Bn 9.54 0.56 3.29 Bn
8 MICC Magnum Ice Cream Co N.V. 9.71 Bn 28.17 1.04 4.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.11 1.47
EV to Cash from Ops. EV/CFO -2.20 29.75
EV to Debt EV to Debt 12.35 27.85
EV to EBIT EV/EBIT -0.63 86.88
EV to EBITDA EV/EBITDA -0.84 -156.20
EV to Free Cash Flow [EV/FCF] EV/FCF -2.20 -5.67
EV to Market Cap EV to Market Cap 0.96 1.15
EV to Revenue EV/Rev 0.33 7.32
Price to Book Value [P/B] P/B 0.18 8.48
Price to Earnings [P/E] P/E -0.62 14.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 4.58
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 3.76
Dividend per Basic Share Div per Share (Qtr) 0.00 0.65
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 22.76
Interest Coverage Interest Coverage -19.57 6.64
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -118.07
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 292.24 43.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.66
EBIAT Growth (1y) % EBIAT Growth (1y) % 67.51 -48.16
EBITDA Growth (1y) % EBITDA Growth (1y) % -28.26 -152.35
EBIT Growth (1y) % EBIT Growth (1y) % 67.51 -50.79
EBT Growth (1y) % EBT Growth (1y) % 66.11 -54.94
EPS Growth (1y) % EPS Growth (1y) % 99.46 -28.10
FCF Growth (1y) % FCF Growth (1y) % -92.90 7.02
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 26,628.48 439.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.33 1.01
Cash Payout Ratio Cash Payout Ratio 0.00 0.12
Cash Ratio Cash Ratio (Qtr) 0.05 0.86
Current Ratio Curr Ratio (Qtr) 1.15 2.60
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 2.21
Interest Cover Ratio Interest Cover Ratio -19.57 6.64
Times Interest Earned Times Interest Earned -19.57 6.64
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % -41.20 -919.13
EBIT Margin % EBIT Margin % -52.17 -1,474.87
EBT Margin % EBT Margin % -54.83 -1,537.76
Gross Margin % Gross Margin % 20.00 26.98
Net Profit Margin % Net Profit Margin % -54.80 -1,538.60