Richtech Robotics Inc. (NASDAQ: RR)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0001963685
Market Cap 406.09 Mn
P/B 1.20
P/E -19.71
P/S 82.29
ROIC (Qtr) -8.46
Div Yield % 0.00
Rev 1y % (Qtr) -8.75
Total Debt (Qtr) 607,000.00
Debt/Equity (Qtr) 0.00
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About

Richtech Robotics Inc. (RR) is a company specializing in the development of advanced robotic technologies. The company operates in the service robotics industry, providing innovative solutions to labor-intensive sectors, particularly in the hospitality and other industries facing unprecedented labor shortages. Richtech was founded in July 2016 as Richtech Creative Displays LLC and has since pivoted to provide robots for various industries, including restaurants, hotels, casinos, resorts, senior care, hospitals, and movie theaters. Richtech's primary...

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Investment thesis

Bull case

  • Healthy cash reserves of 271.81M provide 967.30x coverage of short-term debt 281000, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (7.05M) provides exceptional 74.20x coverage of minority interest expenses (95000), showing strong core operations.
  • Strong tangible asset base of 339.91M provides 559.98x coverage of total debt 607000, indicating robust asset backing and low credit risk.
  • Tangible assets of 339.91M provide exceptional 949.46x coverage of deferred revenue 358000, showing strong service capability backing.
  • Operating cash flow of (7.05M) fully covers other non-current liabilities (246000) by 28.65x, showing strong long-term stability.

Bear case

  • Operating cash flow of (7.05M) barely covers its investment activities of (46.08M), with a coverage ratio of 0.15, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (46.08M) provide weak support for R&D spending of 2.40M, which is -19.23x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (7.05M) provides insufficient coverage of deferred revenue obligations of 358000, which is -19.69x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (7.05M) shows concerning coverage of stock compensation expenses of 12.01M, with a -0.59 ratio indicating potential earnings quality issues.
  • Operating cash flow of (7.05M) provides minimal -2349.67x coverage of tax expenses of 3000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.07 2.28
EV to Cash from Ops. EV/CFO -53.06 37.14
EV to Debt EV to Debt 616.14 34.39
EV to EBIT EV/EBIT -18.23 27.71
EV to EBITDA EV/EBITDA -15.78 25.34
EV to Free Cash Flow [EV/FCF] EV/FCF -31.03 133.36
EV to Market Cap EV to Market Cap 0.92 1.04
EV to Revenue EV/Rev 75.78 39.88
Price to Book Value [P/B] P/B 1.20 6.22
Price to Earnings [P/E] P/E -19.71 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.57
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 15.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 82.53
Interest Coverage Int. cover (Qtr) -253.27 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -522.91 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1,270.91 118.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 10.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -137.21 -283.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -191.89 -36.87
EBIT Growth (1y) % EBIT 1y % (Qtr) -145.92 -80.72
EBT Growth (1y) % EBT 1y % (Qtr) -138.88 -120.93
EPS Growth (1y) % EPS 1y % (Qtr) -7.69 -39.22
FCF Growth (1y) % FCF 1y % (Qtr) -46.02 85.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -15.07 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.10
Cash Ratio Cash Ratio (Qtr) 29.21 3.01
Current Ratio Curr Ratio (Qtr) 35.74 4.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.38
Interest Cover Ratio Int Coverage (Qtr) -253.27 12.34
Times Interest Earned Times Interest Earned (Qtr) -253.27 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -372.00 -7,291.27
EBIT Margin % EBIT Margin % (Qtr) -415.70 -7,413.30
EBT Margin % EBT Margin % (Qtr) -417.35 -9,015.79
Gross Margin % Gross Margin % (Qtr) 55.80 -32.61
Net Profit Margin % Net Margin % (Qtr) -417.40 -7,962.06