Roma Green Finance Ltd (NASDAQ: ROMA)

Sector: Industrials Industry: Consulting Services CIK: 0001945240
Market Cap 60.60 Mn
P/B 5.56
P/E -16.86
P/S 36.94
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Roma Green Finance Ltd (ROMA), a company in the environmental, social, and governance (ESG) consulting services industry, was established in August 2018 and is headquartered in the Cayman Islands. ROMA's primary business activities involve providing customized ESG and comprehensive sustainability solutions to a diverse client base, which includes companies from the financial services, healthcare, and technology sectors, among others. The company's main revenue streams come from its primary products and services, which include ESG reporting, sustainability...

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Investment thesis

Bull case

  • Tangible assets of 9.41M provide exceptional 114.80x coverage of deferred revenue 81959.64, showing strong service capability backing.
  • Operating cash flow of (2.45M) fully covers other non-current liabilities (81959.64) by 29.88x, showing strong long-term stability.
  • Short-term investments of 5.87M provide solid 29.96x coverage of other current liabilities 195836.89, indicating strong liquidity.
  • Tangible assets of 9.41M provide robust 48.05x coverage of other current liabilities 195836.89, indicating strong asset backing.
  • Cash reserves of 2.70M provide robust 12.14x coverage of current liabilities 222285.09, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (2.45M) barely covers its investment activities of (5.39M), with a coverage ratio of 0.45, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (2.45M) provides insufficient coverage of deferred revenue obligations of 81959.64, which is -29.88x, raising concerns about future service delivery capabilities.
  • Operating earnings of (3.61M) show weak coverage of depreciation charges of 2141.90, with a -1684.46 ratio indicating high capital intensity and potential reinvestment needs.
  • Short-term investments of 5.87M exceed receivables of 199783.42 by 29.37x, indicating potentially inefficient capital allocation given collection cycle needs.
  • Operating cash flow of (2.45M) is outpaced by equity issuance of 6.95M (-0.35 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Consulting Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VRSK Verisk Analytics, Inc. 28.99 Bn 59.50 10.85 4.89 Bn
2 EFX Equifax Inc 23.01 Bn 48.18 7.65 4.81 Bn
3 BAH Booz Allen Hamilton Holding Corp 9.48 Bn 11.30 0.83 4.14 Bn
4 FCN Fti Consulting, Inc 5.36 Bn 20.13 1.45 0.74 Bn
5 HURN Huron Consulting Group Inc. 2.29 Bn 21.14 1.38 0.65 Bn
6 ICFI ICF International, Inc. 1.43 Bn 22.60 0.96 0.62 Bn
7 CRAI Cra International, Inc. 1.10 Bn 25.41 1.63 0.19 Bn
8 SBC SBC Medical Group Holdings Inc 0.48 Bn 11.17 2.71 0.03 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.87 1.96
EV to Cash from Ops. EV/CFO -8.49 5.36
EV to Debt EV to Debt 0.00 58.47
EV to EBIT EV/EBIT -5.76 18.59
EV to EBITDA EV/EBITDA -5.40 20.71
EV to Free Cash Flow [EV/FCF] EV/FCF -8.49 11.61
EV to Market Cap EV to Market Cap 0.34 -835.88
EV to Revenue EV/Rev 12.67 5.73
Price to Book Value [P/B] P/B 5.56 3.44
Price to Earnings [P/E] P/E -16.86 22.21
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.70
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.32
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 6.40
Interest Coverage Interest Coverage 0.00 92.47
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -330.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -25.95 126.66
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.43
EBIAT Growth (1y) % EBIAT Growth (1y) % -30.80 -18.91
EBITDA Growth (1y) % EBITDA Growth (1y) % -38.91 -12.32
EBIT Growth (1y) % EBIT Growth (1y) % -31.91 -132.53
EBT Growth (1y) % EBT Growth (1y) % -31.91 -937.51
EPS Growth (1y) % EPS Growth (1y) % 50.64 -76.24
FCF Growth (1y) % FCF Growth (1y) % 40.17 -11.33
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 161.22 12.14
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.02 0.77
Cash Payout Ratio Cash Payout Ratio 0.00 0.09
Cash Ratio Cash Ratio (Qtr) 12.14 2.02
Current Ratio Curr Ratio (Qtr) 42.32 4.88
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.55
Interest Cover Ratio Interest Cover Ratio 0.00 92.47
Times Interest Earned Times Interest Earned 0.00 92.47
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % -219.80 -16.97
EBIT Margin % EBIT Margin % -1,711.33 -96.24
EBT Margin % EBT Margin % -219.97 -22.60
Gross Margin % Gross Margin % 36.00 54.26
Net Profit Margin % Net Profit Margin % -219.20 -25.32