Perfect Moment Ltd. (NYSE: PMNT)

Sector: Consumer Cyclical Industry: Apparel Manufacturing CIK: 0001849221
Market Cap 7.62 Mn
P/B 7.77
P/E -0.48
P/S 0.33
ROIC (Qtr) -261.10
Div Yield % 0.00
Rev 1y % (Qtr) 24.26
Total Debt (Qtr) 5.52 Mn
Debt/Equity (Qtr) 5.62

About

Perfect Moment Ltd., also known as PMNT, is a company that operates in the fashion industry. Its main business activities involve designing, manufacturing, and distributing a variety of fashion products, including clothing, accessories, and footwear. The company's target customers are fashion-conscious individuals and retailers who seek high-quality, stylish, and affordable fashion products. PMNT generates revenue through the sale of its products to retailers and its e-commerce platform. The company's primary products include clothing, accessories,...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 14.96M provides 2.71x coverage of total debt 5.51M, indicating robust asset backing and low credit risk.
  • Tangible assets of 14.96M provide exceptional 12.57x coverage of deferred revenue 1.19M, showing strong service capability backing.
  • Operating cash flow of (13.27M) fully covers other non-current liabilities (1.19M) by 11.15x, showing strong long-term stability.
  • Robust tangible asset base of 14.96M provides 7.53x coverage of working capital 1.99M, indicating strong operational backing.

Bear case

  • With cash reserves of 393000 against inventory of 6.74M, the 0.06 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of (13.27M) provides insufficient coverage of deferred revenue obligations of 1.19M, which is -11.15x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (13.27M) shows concerning coverage of stock compensation expenses of 868000, with a -15.28 ratio indicating potential earnings quality issues.
  • Free cash flow of (13.63M) provides weak coverage of capital expenditures of 369000, with a -36.95 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (12.11M) show weak coverage of depreciation charges of 324000, with a -37.37 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Apparel Manufacturing
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 RL Ralph Lauren Corp 21.81 Bn 25.53 2.88 2.85 Bn
2 GIL Gildan Activewear Inc. 9.45 Bn 19.89 2.81 1.87 Bn
3 LEVI Levi Strauss & Co 8.22 Bn 13.64 1.29 2.29 Bn
4 VFC V F Corp 7.10 Bn 78.61 0.74 5.79 Bn
5 KTB Kontoor Brands, Inc. 3.40 Bn 15.62 1.20 1.50 Bn
6 PVH Pvh Corp. /De/ 3.39 Bn 9.96 0.38 4.26 Bn
7 COLM Columbia Sportswear Co 3.12 Bn 16.69 0.91 0.48 Bn
8 ZGN Ermenegildo Zegna N.V. 2.55 Bn 43.66 1.13 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.43 1.01
EV to Cash from Ops. EV/CFO -0.48 8.80
EV to Debt EV to Debt 1.16 4.30
EV to EBIT EV/EBIT -0.53 -5.31
EV to EBITDA EV/EBITDA -0.54 -69.89
EV to Free Cash Flow [EV/FCF] EV/FCF -0.47 15.55
EV to Market Cap EV to Market Cap 0.84 1.81
EV to Revenue EV/Rev 0.28 1.14
Price to Book Value [P/B] P/B 7.77 1.78
Price to Earnings [P/E] P/E -0.48 14.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -49.33 -1.16
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -3.95
Dividend per Basic Share Div per Share (Qtr) 0.00 0.51
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 20.82
Interest Coverage Int. cover (Qtr) -3.61 26.98
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -59.74 -10.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -84.59 10.71
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -21.91 -88.95
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -15.50 11.99
EBIT Growth (1y) % EBIT 1y % (Qtr) -21.91 -49.71
EBT Growth (1y) % EBT 1y % (Qtr) -44.95 -181.63
EPS Growth (1y) % EPS 1y % (Qtr) 5.43 -218.58
FCF Growth (1y) % FCF 1y % (Qtr) -29.01 -29.63
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.78 6.94
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.53 1.16
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.15
Cash Ratio Cash Ratio (Qtr) 0.03 0.28
Current Ratio Curr Ratio (Qtr) 1.16 1.99
Debt to Equity Ratio Debt/Equity (Qtr) 5.62 -1.63
Interest Cover Ratio Int Coverage (Qtr) -3.61 26.98
Times Interest Earned Times Interest Earned (Qtr) -3.61 26.98
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -51.40 -6.73
EBIT Margin % EBIT Margin % (Qtr) -52.81 -10.67
EBT Margin % EBT Margin % (Qtr) -67.45 -17.44
Gross Margin % Gross Margin % (Qtr) 51.20 49.34
Net Profit Margin % Net Margin % (Qtr) -68.90 -18.93