PSQ Holdings, Inc. (NYSE: PSQH)

Sector: Technology Industry: Software - Application CIK: 0001847064
Market Cap 45.94 Mn
P/B 3.08
P/E -1.01
P/S 1.81
ROIC (Qtr) -79.50
Div Yield % 0.00
Rev 1y % (Qtr) 37.33
Total Debt (Qtr) 33.76 Mn
Debt/Equity (Qtr) 2.27

About

PSQ Holdings, Inc. (PSQH) operates in the digital advertising and e-commerce industries, with a focus on connecting patriotic Americans with like-minded business members who share their traditional American values. The company's primary business activities revolve around providing a platform for businesses to reach customers who share their values, and empowering consumers to make informed purchasing decisions that align with their values. PSQH operates in the United States, with over 1.6 million active consumer members and over 75,000 business...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 11.06M provide 2.27x coverage of short-term debt 4.87M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 32.52M provide robust 6.68x coverage of other current liabilities 4.87M, indicating strong asset backing.
  • Cash reserves of 11.06M provide robust 0.92x coverage of current liabilities 12.02M, indicating strong short-term solvency.
  • Strong cash position of 11.06M provides 2.27x coverage of other current liabilities 4.87M, indicating excellent liquidity.
  • Cash reserves of 11.06M provide solid 3.65x coverage of other non-current liabilities 3.03M, indicating strong liquidity.

Bear case

  • Investment activities of (9.79M) provide weak support for R&D spending of 5.27M, which is -1.86x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (24.37M) shows concerning coverage of stock compensation expenses of 11.84M, with a -2.06 ratio indicating potential earnings quality issues.
  • Free cash flow of (31.40M) provides weak coverage of capital expenditures of 7.03M, with a -4.47 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (24.37M) provides minimal -24370258x coverage of tax expenses of 1, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (42.06M) show weak coverage of depreciation charges of 6M, with a -7.01 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

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 0.99 2.68
EV to Cash from Ops. EV/CFO -2.39 13.34
EV to Debt EV to Debt 1.73 57.60
EV to EBIT EV/EBIT -1.39 19.20
EV to EBITDA EV/EBITDA -1.64 15.11
EV to Free Cash Flow [EV/FCF] EV/FCF -1.86 14.78
EV to Market Cap EV to Market Cap 1.27 -93.16
EV to Revenue EV/Rev 2.29 4.63
Price to Book Value [P/B] P/B 3.08 4.29
Price to Earnings [P/E] P/E -1.01 -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 Int. cover (Qtr) -12.10 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -70.30 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 92.38 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -2.01 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 28.67 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -2.01 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -6.81 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 10.32 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 18.66 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 55.93 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.43 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.92 3.75
Current Ratio Curr Ratio (Qtr) 2.54 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 2.27 0.17
Interest Cover Ratio Int Coverage (Qtr) -12.10 -52.32
Times Interest Earned Times Interest Earned (Qtr) -12.10 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -141.70 -100.06
EBIT Margin % EBIT Margin % (Qtr) -165.29 -164.24
EBT Margin % EBT Margin % (Qtr) -178.95 -116.94
Gross Margin % Gross Margin % (Qtr) 59.10 58.20
Net Profit Margin % Net Margin % (Qtr) -178.90 -121.65