Pony AI Inc. (NASDAQ: PONY)

Sector: Technology Industry: Information Technology Services CIK: 0001969302
Market Cap 3.49 Bn
P/B 4.35
P/E -10.31
P/S 36.19
ROIC (Qtr) -42.70
Div Yield % 0.00
Rev 1y % (Qtr) 72.03
Total Debt (Qtr) 15.13 Mn
Debt/Equity (Qtr) 0.02

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 100.40M provide 20.65x coverage of short-term debt 4.86M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 900.67M provides 59.52x coverage of total debt 15.13M, indicating robust asset backing and low credit risk.
  • Long-term investments of 267.85M provide solid 26.08x coverage of long-term debt 10.27M, indicating strategic financial planning.
  • Cash position of 100.40M provides exceptional 20.13x coverage of minority interest expenses 4.99M, indicating strong liquidity.
  • Cash reserves of 100.40M provide robust 1.31x coverage of current liabilities 76.88M, indicating strong short-term solvency.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 304.74M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 345.67M significantly exceed cash reserves of 100.40M, which is 3.44x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Long-term investments of 267.85M represent a high 4.34x of fixed assets 61.74M, indicating potential overexposure to financial assets versus operational capabilities.
  • Short-term investments of 345.67M represent 0.74x of working capital 464.42M, suggesting potentially excessive financial asset allocation versus operational needs.
  • Tangible assets of 900.67M provide limited backing for working capital of 464.42M, which is 1.94x, suggesting increased operational risk in market downturns.

Peer comparison

Companies in the Information Technology Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 IBM International Business Machines Corp 279.99 Bn 35.41 4.28 66.57 Bn
2 ACN Accenture plc 168.17 Bn 22.09 2.38 8.20 Bn
3 INFY Infosys Ltd 74.96 Bn 23.74 3.89 -
4 CTSH Cognizant Technology Solutions Corp 41.45 Bn 19.48 1.99 1.17 Bn
5 FIS Fidelity National Information Services, Inc. 35.21 Bn 231.62 3.36 13.00 Bn
6 WIT Wipro Ltd 29.93 Bn 19.70 2.97 1.95 Bn
7 BR Broadridge Financial Solutions, Inc. 26.38 Bn 28.51 3.74 3.28 Bn
8 LDOS Leidos Holdings, Inc. 23.72 Bn 16.88 1.37 5.23 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.54 1.44
EV to Cash from Ops. EV/CFO -24.28 5.63
EV to Debt EV to Debt 210.57 8.06
EV to EBIT EV/EBIT -9.42 -4.05
EV to EBITDA EV/EBITDA -10.02 -0.52
EV to Free Cash Flow [EV/FCF] EV/FCF -20.54 -1.66
EV to Market Cap EV to Market Cap 0.91 1.35
EV to Revenue EV/Rev 33.05 57.14
Price to Book Value [P/B] P/B 4.35 3.34
Price to Earnings [P/E] P/E -10.31 -5.47
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.83
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.66
Dividend per Basic Share Div per Share (Qtr) 0.00 0.47
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.24
Interest Coverage Interest Coverage 0.00 -319.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -253.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.00 114.15
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 35.23
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -197.32 -22.49
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 -25.03
EBIT Growth (1y) % EBIT 1y % (Qtr) -197.31 -82.44
EBT Growth (1y) % EBT 1y % (Qtr) -197.31 97.07
EPS Growth (1y) % EPS 1y % (Qtr) 70.90 147.29
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 -8,638.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -15.13 -8.24
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.11 0.78
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.31 0.66
Current Ratio Curr Ratio (Qtr) 7.04 2.12
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.88
Interest Cover Ratio Interest Cover Ratio 0.00 -319.17
Times Interest Earned Times Interest Earned 0.00 -319.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -550.76
EBIT Margin % EBIT Margin % (Qtr) -350.98 -775.74
EBT Margin % EBT Margin % (Qtr) -350.98 -827.89
Gross Margin % Gross Margin % (Qtr) 18.60 24.07
Net Profit Margin % Net Margin % (Qtr) -351.00 -830.34