Rumble Inc. (NASDAQ: RUM)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001830081
Market Cap 1.31 Bn
P/B 4.34
P/E -4.59
P/S 12.63
ROIC (Qtr) -37.24
Div Yield % 0.00
Rev 1y % (Qtr) -1.18
Total Debt (Qtr) 2.25 Mn
Debt/Equity (Qtr) 0.01

About

Rumble Inc., a Delaware corporation, trades on the Nasdaq Global Market under the ticker symbol RUM and operates in the video and cloud services industry. The company's headquarters are located in Longboat Key, Florida, and it was established in 2013. Rumble's primary business activities involve the operation of a video sharing platform and a cloud infrastructure service. Rumble's video sharing platform, Rumble Video, enables users to upload, share, and monetize their videos on desktop and mobile devices, as well as connected TVs. Rumble Cloud,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 269.76M provide 203.56x coverage of short-term debt 1.33M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 331.34M provides 147.57x coverage of total debt 2.25M, indicating robust asset backing and low credit risk.
  • Tangible assets of 331.34M provide exceptional 21.18x coverage of deferred revenue 15.64M, showing strong service capability backing.
  • Long-term investments of 24.05M provide solid 26.14x coverage of long-term debt 920130, indicating strategic financial planning.
  • Strong free cash flow of (55.16M) provides 9.59x coverage of acquisition spending (5.75M), indicating disciplined M&A strategy.

Bear case

  • Investment activities of (27.26M) provide weak support for R&D spending of 18.50M, which is -1.47x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 269.76M provide limited coverage of acquisition spending of (5.75M), which is -46.89x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (53.36M) provides insufficient coverage of deferred revenue obligations of 15.64M, which is -3.41x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (53.36M) shows concerning coverage of stock compensation expenses of 26.31M, with a -2.03 ratio indicating potential earnings quality issues.
  • Free cash flow of (55.16M) provides weak coverage of capital expenditures of 1.79M, with a -30.74 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.80 1.10
EV to Cash from Ops. EV/CFO -19.29 -3.08
EV to Debt EV to Debt 458.49 28.98
EV to EBIT EV/EBIT -3.58 -26.54
EV to EBITDA EV/EBITDA -10.37 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF -18.66 -67.01
EV to Market Cap EV to Market Cap 0.79 0.90
EV to Revenue EV/Rev 9.92 61.25
Price to Book Value [P/B] P/B 4.34 1.56
Price to Earnings [P/E] P/E -4.59 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) 0.00 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 71.15 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 106.26 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -118.42 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 24.13 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -114.64 32.66
EBT Growth (1y) % EBT 1y % (Qtr) -114.64 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) -110.94 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) 51.60 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 78.32 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.28 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 5.68 1.54
Current Ratio Curr Ratio (Qtr) 6.04 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 -0.39
Interest Cover Ratio Int Coverage (Qtr) 0.00 -202.56
Times Interest Earned Times Interest Earned (Qtr) 0.00 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -261.70 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) -277.44 -4,786.62
EBT Margin % EBT Margin % (Qtr) -277.44 -5,002.12
Gross Margin % Gross Margin % (Qtr) -12.10 58.65
Net Profit Margin % Net Margin % (Qtr) -275.50 -5,003.08