Resolute Holdings Management, Inc. (NYSE: RHLD)

Sector: Industrials Industry: Specialty Business Services CIK: 0002039497
Market Cap 0.00
P/B 0.00
P/E 0.00
P/S 0.00
ROIC (Qtr) 88.88
Div Yield % 0.00
Rev 1y % (Qtr) 12.82
Total Debt (Qtr) 198.27 Mn
Debt/Equity (Qtr) 18.31
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About

Investment thesis

Bull case

  • Strong operating cash flow of 180.53M provides robust 0.91x coverage of total debt 198.27M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 98.25M provide 5.71x coverage of short-term debt 17.21M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 180.53M provides exceptional 12.55x coverage of interest expenses 14.39M, showing strong debt service capability.
  • Strong operating cash flow of 180.53M provides 1.62x coverage of SG&A expenses 111.50M, showing efficient operational cost management.
  • Robust free cash flow of 173.41M exceeds capital expenditure of 7.12M by 24.36x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 180.53M barely covers its investment activities of (57.64M), with a coverage ratio of -3.13, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of 173.41M represents just -17.01x of debt issuance (10.20M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 180.53M shows concerning coverage of minority interest expenses of 104.53M, which is 1.73x, suggesting complex corporate structure risks.
  • Tangible assets of 293.17M provide limited backing for working capital of 188.66M, which is 1.55x, suggesting increased operational risk in market downturns.
  • R&D investment of 0 represents just 0x of SG&A expenses of 111.50M, indicating potential underinvestment in innovation relative to administrative overhead.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Business Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CTAS Cintas Corp 120.08 Bn 556.91 33.85 3.24 Bn
2 RELX Relx Plc 56.19 Bn 20.01 4.34 9.82 Bn
3 TRI Thomson Reuters Corp /Can/ 37.42 Bn 24.91 5.00 2.44 Bn
4 CPRT Copart Inc 36.25 Bn 22.74 7.79 0.10 Bn
5 RBA Rb Global Inc. 19.20 Bn 49.09 4.24 4.21 Bn
6 ULS UL Solutions Inc. 14.12 Bn 43.32 4.92 0.74 Bn
7 GPN Global Payments Inc 11.52 Bn 284.78 8.66 16.20 Bn
8 ARMK Aramark 10.37 Bn 32.72 0.55 6.57 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.00 2.48
EV to Cash from Ops. EV to Cash from Ops. 0.00 30.22
EV to Debt EV to Debt 0.00 31.08
EV to EBIT EV to EBIT 0.00 94.66
EV to EBITDA EV to EBITDA 0.00 18.37
EV to Free Cash Flow [EV/FCF] EV to Free Cash Flow [EV/FCF] 0.00 -20.73
EV to Market Cap EV to Market Cap 0.00 178.66
EV to Revenue EV to Revenue 0.00 8.12
Price to Book Value [P/B] Price to Book Value [P/B] 0.00 5.37
Price to Earnings [P/E] Price to Earnings [P/E] 0.00 65.19
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -15,800.59
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 10.14
Dividend per Basic Share Div per Share (Qtr) 0.00 0.35
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.65
Interest Coverage Int. cover (Qtr) 2.73 30.46
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 27.24 -178.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 119.23 155.14
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.38
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -33.08 -34.92
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 3.45 -86.28
EBIT Growth (1y) % EBIT 1y % (Qtr) -30.48 -22.62
EBT Growth (1y) % EBT 1y % (Qtr) -7.03 -287.35
EPS Growth (1y) % EPS Growth (1y) % 0.00 -118.47
FCF Growth (1y) % FCF 1y % (Qtr) 43.34 -146.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.58 2.63
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.52 0.84
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.03
Cash Ratio Cash Ratio (Qtr) 1.39 1.15
Current Ratio Curr Ratio (Qtr) 3.68 4.12
Debt to Equity Ratio Debt/Equity (Qtr) 18.31 0.92
Interest Cover Ratio Int Coverage (Qtr) 2.73 30.46
Times Interest Earned Times Interest Earned (Qtr) 2.73 30.46
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 11.30 -33.89
EBIT Margin % EBIT Margin % (Qtr) 8.81 -43.32
EBT Margin % EBT Margin % (Qtr) 5.58 -44.88
Gross Margin % Gross Margin % (Qtr) 55.50 39.81
Net Profit Margin % Net Margin % (Qtr) 5.40 -41.60