Scienture Holdings, Inc. (NASDAQ: SCNX)

Sector: Healthcare Industry: Pharmaceutical Retailers CIK: 0001382574
Market Cap 981,129.60
P/B 0.01
P/E -0.05
P/S 1.50
ROIC (Qtr) -20.70
Div Yield % 0.00
Rev 1y % (Qtr) 809.71
Total Debt (Qtr) 2.56 Mn
Debt/Equity (Qtr) 0.03
Add ratio to table...

About

TRxADE Health, Inc., often recognized by its stock symbol MEDS, operates in the healthcare and technology sector with a focus on digitalizing the retail pharmacy experience in the United States. The company's primary objective is to optimize drug procurement, the prescription journey, and patient engagement. TRxADE Health has a rich history, having been incorporated in Delaware in 2

Investment thesis

Bull case

  • Strong tangible asset base of 7.06M provides 2.76x coverage of total debt 2.56M, indicating robust asset backing and low credit risk.
  • Tangible assets of 7.06M provide robust 6.28x coverage of other current liabilities 1.12M, indicating strong asset backing.
  • Cash reserves of 355692 exceed inventory value of 234521 by 1.52x, indicating strong liquidity and inventory management.
  • Operating cash flow of (11.11M) exceeds working capital of (5.93M) by 1.87x, showing strong operational efficiency.
  • R&D investment of 2.78M represents significant 4.72x of receivables 590050, indicating innovation-driven growth.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 2.78M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (11.11M) shows concerning coverage of stock compensation expenses of 6.19M, with a -1.79 ratio indicating potential earnings quality issues.
  • High receivables of 590050 relative to inventory of 234521 (2.52 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of (16.95M) show weak coverage of depreciation charges of 51494, with a -329.10 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (11.11M) barely covers operating expenses of 2.12M with a -5.24 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Pharmaceutical Retailers
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 HITI High Tide Inc. 193.98 Mn -5.35 0.46 78.46 Mn
2 PETS Petmed Express Inc 63.41 Mn -0.98 0.35 0.65 Mn
3 WGRX Wellgistics Health, Inc. 15.67 Mn -0.20 0.46 29.99 Mn
4 RDGT Ridgetech Inc. 8.37 Mn 0.82 0.07 -
5 HKPD Cellyan Biotechnology Co., Ltd 6.31 Mn -233.33 0.31 -
6 SCNX Scienture Holdings, Inc. 0.98 Mn -0.05 1.50 2.56 Mn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.05 0.47
EV to Cash from Ops. EV/CFO -0.46 5.03
EV to Debt EV to Debt 1.98 8.90
EV to EBIT EV/EBIT -0.30 9.46
EV to EBITDA EV/EBITDA -0.29 3.44
EV to Free Cash Flow [EV/FCF] EV/FCF -0.46 9.08
EV to Market Cap EV to Market Cap 5.16 2.07
EV to Revenue EV/Rev 7.76 1.66
Price to Book Value [P/B] P/B 0.01 1.49
Price to Earnings [P/E] P/E -0.05 -39.85
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -372.81
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.00
Interest Coverage Int. cover (Qtr) -4.09 -16.58
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -99.80
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -40.83 115.50
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -398.57 -3,924.57
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -43.96 -422.54
EBIT Growth (1y) % EBIT 1y % (Qtr) -406.33 -957.55
EBT Growth (1y) % EBT 1y % (Qtr) -562.19 -968.58
EPS Growth (1y) % EPS 1y % (Qtr) -360.25 -5,744.05
FCF Growth (1y) % FCF 1y % (Qtr) 10.28 -541.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 621.86 88.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 1.33
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.05 0.32
Current Ratio Curr Ratio (Qtr) 0.19 1.26
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 1.09
Interest Cover Ratio Int Coverage (Qtr) -4.09 -16.58
Times Interest Earned Times Interest Earned (Qtr) -4.09 -16.58
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -2,585.80 -466.75
EBIT Margin % EBIT Margin % (Qtr) -2,593.64 -473.13
EBT Margin % EBT Margin % (Qtr) -3,227.63 -581.27
Gross Margin % Gross Margin % (Qtr) 88.50 27.92
Net Profit Margin % Net Margin % (Qtr) -3,145.80 -568.27