QVC Group, Inc. (NASDAQ: QVCGA)

Sector: Consumer Cyclical Industry: Internet Retail CIK: 0001355096
Market Cap 78.75 Mn
P/B -0.03
P/E -0.02
P/S 0.01
ROIC (Qtr) -148.34
Div Yield % 0.00
Rev 1y % (Qtr) -5.59
Total Debt (Qtr) 6.48 Bn
Debt/Equity (Qtr) -2.11

About

Qurate Retail, Inc., also known as QRTEA on the NASDAQ stock exchange, is a prominent player in the retail industry, specifically in video and online commerce. The company operates in various regions, including North America, Europe, and Asia. Qurate Retail's primary businesses and assets include QVC, Inc. and Cornerstone Brands, Inc., making it a global leader in video retailing, e-commerce, mobile commerce, and social commerce. Qurate Retail's main business activities revolve around its flagship brand, QVC, which curates and sells a wide variety...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 1.82B provide 22.16x coverage of short-term debt 82M, demonstrating strong liquidity position and minimal refinancing risk.
  • Cash position of 1.82B provides exceptional 45.42x coverage of minority interest expenses 40M, indicating strong liquidity.
  • Retained earnings of (3.50B) represent substantial 1.14x of equity (3.07B), indicating strong internal capital generation.
  • Tangible assets of 5.17B provide robust 5.85x coverage of other current liabilities 883M, indicating strong asset backing.
  • Cash reserves of 1.82B provide robust 1.12x coverage of current liabilities 1.62B, indicating strong short-term solvency.

Bear case

  • Operating cash flow of 242M barely covers its investment activities of (279M), with a coverage ratio of -0.87, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 242M provides thin coverage of dividend payments of (1M) with a -242 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of (26M) provides weak coverage of capital expenditures of 268M, with a -0.10 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (3.50B) show weak coverage of depreciation charges of 403M, with a -8.69 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 242M provides minimal -0.83x coverage of tax expenses of (291M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Geographical Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Internet Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AMZN Amazon Com Inc 2,526.56 Bn 33.03 3.65 135.42 Bn
2 BABA Alibaba Group Holding Ltd 395.87 Bn 22.47 2.79 39.55 Bn
3 PDD PDD Holdings Inc. 149.89 Bn 10.44 2.55 1.50 Bn
4 MELI Mercadolibre Inc 106.40 Bn 51.23 4.06 9.88 Bn
5 DASH DoorDash, Inc. 88.88 Bn 103.00 7.03 3.26 Bn
6 SE Sea Ltd 73.28 Bn 51.67 3.48 4.24 Bn
7 EBAY Ebay Inc 64.91 Bn 5.04 6.46 7.02 Bn
8 JD JD.com, Inc. 42.35 Bn 9.36 0.23 15.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.62 1.64
EV to Cash from Ops. EV/CFO 19.40 10.76
EV to Debt EV to Debt 0.72 18.39
EV to EBIT EV/EBIT -1.34 20.59
EV to EBITDA EV/EBITDA -1.53 20.75
EV to Free Cash Flow [EV/FCF] EV/FCF -180.53 16.58
EV to Market Cap EV to Market Cap 59.60 -3.15
EV to Revenue EV/Rev 0.49 -4.05
Price to Book Value [P/B] P/B -0.03 5.50
Price to Earnings [P/E] P/E -0.02 36.85
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -3,688.00 -93.84
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -203.90
Dividend per Basic Share Div per Share (Qtr) 0.00 0.08
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -3.46
Interest Coverage Int. cover (Qtr) -7.32 -1,581.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -17.03 -39.45
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 108.13 53.91
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -852.20 37.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -510.44 -62.59
EBIT Growth (1y) % EBIT 1y % (Qtr) -1,328.42 8.33
EBT Growth (1y) % EBT 1y % (Qtr) -2,074.32 -10.66
EPS Growth (1y) % EPS 1y % (Qtr) -1,316.90 13.44
FCF Growth (1y) % FCF 1y % (Qtr) -106.48 -46.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -9.10 23.19
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.26 1.17
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.04
Cash Ratio Cash Ratio (Qtr) 1.12 2.14
Current Ratio Curr Ratio (Qtr) 2.49 3.56
Debt to Equity Ratio Debt/Equity (Qtr) -2.11 0.52
Interest Cover Ratio Int Coverage (Qtr) -7.32 -1,581.43
Times Interest Earned Times Interest Earned (Qtr) -7.32 -1,581.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -32.60 4.40
EBIT Margin % EBIT Margin % (Qtr) -36.86 -36.99
EBT Margin % EBT Margin % (Qtr) -41.89 -40.80
Gross Margin % Gross Margin % (Qtr) 34.40 44.74
Net Profit Margin % Net Margin % (Qtr) -38.80 -40.62