Solesence, Inc. (NASDAQ: SLSN)

Sector: Consumer Defensive Industry: Household & Personal Products CIK: 0000883107
Market Cap 202.04 Mn
P/B 11.73
P/E 189.00
P/S 3.25
ROIC (Qtr) 5.51
Div Yield % 0.00
Rev 1y % (Qtr) -13.45
Total Debt (Qtr) 25.18 Mn
Debt/Equity (Qtr) 1.46

About

Price action

Investment thesis

Bull case

  • Tangible assets of 53.99M provide exceptional 45.10x coverage of deferred revenue 1.20M, showing strong service capability backing.
  • Operating cash flow of (8.20M) fully covers other non-current liabilities (945000) by 8.67x, showing strong long-term stability.
  • Robust tangible asset base of 53.99M provides 3.62x coverage of working capital 14.93M, indicating strong operational backing.
  • Operating cash flow of (8.20M) provides strong 6.64x coverage of operating expenses (1.23M), showing operational efficiency.
  • Tangible assets of 53.99M provide robust 8.31x coverage of other current liabilities 6.50M, indicating strong asset backing.

Bear case

  • With cash reserves of 429000 against inventory of 18.87M, the 0.02 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Investment activities of (4.29M) provide weak support for R&D spending of 4.15M, which is -1.03x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (8.20M) provides insufficient coverage of deferred revenue obligations of 1.20M, which is -6.85x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (8.20M) shows concerning coverage of stock compensation expenses of 617000, with a -13.29 ratio indicating potential earnings quality issues.
  • Free cash flow of (12.48M) provides weak coverage of capital expenditures of 4.29M, with a -2.91 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Household & Personal Products
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PG PROCTER & GAMBLE Co 344.56 Bn 20.55 4.06 35.95 Bn
2 UL Unilever Plc 162.92 Bn 24.93 2.32 -
3 CL Colgate Palmolive Co 64.98 Bn 22.35 3.23 8.42 Bn
4 EL Estee Lauder Companies Inc 38.59 Bn -41.50 2.67 9.42 Bn
5 KMB Kimberly Clark Corp 33.56 Bn 17.05 1.86 7.30 Bn
6 KVUE Kenvue Inc. 32.45 Bn 22.64 2.16 8.97 Bn
7 CHD Church & Dwight Co Inc /De/ 20.90 Bn 26.71 3.40 2.20 Bn
8 CLX Clorox Co /De/ 12.14 Bn 15.35 1.79 3.08 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.15 1.45
EV to Cash from Ops. EV/CFO -27.36 8.11
EV to Debt EV to Debt 8.90 4.77
EV to EBIT EV/EBIT 93.59 14.54
EV to EBITDA EV/EBITDA 67.95 7.35
EV to Free Cash Flow [EV/FCF] EV/FCF -17.96 2.98
EV to Market Cap EV to Market Cap 1.11 -1.59
EV to Revenue EV/Rev 3.61 2.00
Price to Book Value [P/B] P/B 11.73 -7.69
Price to Earnings [P/E] P/E 189.00 16.46
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 9.11
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 12.82
Dividend per Basic Share Div per Share (Qtr) 0.00 0.92
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 11.25
Interest Coverage Int. cover (Qtr) 3.37 2.65
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -98.06 -96.96
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -85.33 2.29
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -2.46
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -55.98 -142.06
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -24.61 -154.15
EBIT Growth (1y) % EBIT 1y % (Qtr) -30.73 -155.18
EBT Growth (1y) % EBT 1y % (Qtr) -36.90 -206.88
EPS Growth (1y) % EPS 1y % (Qtr) -75.00 -158.13
FCF Growth (1y) % FCF 1y % (Qtr) -148.07 -5.66
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.81 -1.42
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.15 0.82
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.19
Cash Ratio Cash Ratio (Qtr) 0.02 0.76
Current Ratio Curr Ratio (Qtr) 1.84 2.31
Debt to Equity Ratio Debt/Equity (Qtr) 1.46 -2.80
Interest Cover Ratio Int Coverage (Qtr) 3.37 2.65
Times Interest Earned Times Interest Earned (Qtr) 3.37 2.65
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.30 -32.28
EBIT Margin % EBIT Margin % (Qtr) 3.86 -37.76
EBT Margin % EBT Margin % (Qtr) 2.71 -40.89
Gross Margin % Gross Margin % (Qtr) 24.80 50.05
Net Profit Margin % Net Margin % (Qtr) 1.70 -42.94