Retractable Technologies Inc (NYSE: RVP)

Sector: Healthcare Industry: Medical Instruments & Supplies CIK: 0000946563
Market Cap 24.48 Mn
P/B 0.32
P/E -3.67
P/S 0.65
ROIC (Qtr) -24.08
Div Yield % 0.00
Rev 1y % (Qtr) -2.52
Total Debt (Qtr) 982,707.00
Debt/Equity (Qtr) 0.01

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 3.44M provide 9.59x coverage of short-term debt 359102, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 146.43M provides 149.01x coverage of total debt 982707, indicating robust asset backing and low credit risk.
  • Retained earnings of 16.28M provide full 26.10x coverage of long-term debt 623605, indicating strong internal capital position.
  • Short-term investments of 30.50M provide solid 6.50x coverage of other current liabilities 4.69M, indicating strong liquidity.
  • Tangible assets of 146.43M provide robust 31.20x coverage of other current liabilities 4.69M, indicating strong asset backing.

Bear case

  • Operating cash flow of (7.57M) barely covers its investment activities of 7.66M, with a coverage ratio of -0.99, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 3.44M against inventory of 20.39M, the 0.17 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Short-term investments of 30.50M significantly exceed cash reserves of 3.44M, which is 8.86x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Free cash flow of (8.38M) provides weak coverage of capital expenditures of 807130, with a -10.38 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (6.06M) show weak coverage of depreciation charges of 7.51M, with a -0.81 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Medical Instruments & Supplies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ISRG Intuitive Surgical Inc 209.14 Bn 76.14 21.76 0.00 Bn
2 BDX Becton Dickinson & Co 58.36 Bn 34.78 2.67 19.18 Bn
3 ALC Alcon Inc 39.57 Bn 37.80 3.89 5.24 Bn
4 RMD Resmed Inc 37.01 Bn 25.74 7.04 0.85 Bn
5 WST West Pharmaceutical Services Inc 19.95 Bn 40.58 6.61 0.30 Bn
6 HOLX Hologic Inc 16.94 Bn 29.95 4.13 2.52 Bn
7 COO Cooper Companies, Inc. 16.64 Bn 44.39 4.07 2.51 Bn
8 SOLV Solventum Corp 15.00 Bn 9.84 1.79 5.14 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.15 3.14
EV to Cash from Ops. EV/CFO -2.97 37.60
EV to Debt EV to Debt 22.90 23.10
EV to EBIT EV/EBIT -3.71 50.25
EV to EBITDA EV/EBITDA -2.00 19.58
EV to Free Cash Flow [EV/FCF] EV/FCF -2.69 -19.40
EV to Market Cap EV to Market Cap 0.92 -1.68
EV to Revenue EV/Rev 0.59 171.31
Price to Book Value [P/B] P/B 0.32 6.03
Price to Earnings [P/E] P/E -3.67 204.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -28.97 -1.11
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.52
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.75
Interest Coverage Int. cover (Qtr) -65.18 -119.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 37.70 -55.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -12.07 200.65
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.49
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 58.91 -56.39
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -21.50 -106.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 15.87 -36.51
EBT Growth (1y) % EBT 1y % (Qtr) 16.11 -47.44
EPS Growth (1y) % EPS 1y % (Qtr) 61.11 -15.70
FCF Growth (1y) % FCF 1y % (Qtr) 14.96 59.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -130.51 68.22
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.26 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.36 2.49
Current Ratio Curr Ratio (Qtr) 6.66 7.77
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.55
Interest Cover Ratio Int Coverage (Qtr) -65.18 -119.10
Times Interest Earned Times Interest Earned (Qtr) -65.18 -119.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 3.80 -2,368.64
EBIT Margin % EBIT Margin % (Qtr) -15.99 -2,472.65
EBT Margin % EBT Margin % (Qtr) -16.24 -2,442.59
Gross Margin % Gross Margin % (Qtr) -2.40 30.07
Net Profit Margin % Net Margin % (Qtr) -17.60 -2,438.52