Sohu.com Ltd (NASDAQ: SOHU)

Sector: Communication Services Industry: Electronic Gaming & Multimedia CIK: 0001734107
Market Cap 457.05 Mn
P/B 0.36
P/E 1.16
P/S 0.78
ROIC (Qtr) 31.76
Div Yield % 0.00
Rev 1y % (Qtr) 5.63
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Sohu.com Ltd, popularly known as Sohu, is a prominent Chinese online media and technology company. With the stock symbol SOHU, it operates primarily in the digital media and technology industry. Sohu's business activities encompass a broad spectrum of services and products, primarily in the domains of online advertising, e-commerce, and online gaming. The company's operations span across China and other international regions. Sohu's revenue generation is primarily attributable to its online advertising, e-commerce, and online gaming segments. The...

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Investment thesis

Bull case

  • Tangible assets of 1.62B provide exceptional 29.54x coverage of deferred revenue 54.88M, showing strong service capability backing.
  • Short-term investments of 702.37M provide solid 2.38x coverage of other current liabilities 294.60M, indicating strong liquidity.
  • Tangible assets of 1.62B provide robust 5.50x coverage of other current liabilities 294.60M, indicating strong asset backing.
  • R&D investment of 247.51M represents healthy 4.51x of deferred revenue 54.88M, indicating strong future innovation pipeline.
  • Short-term investments of 702.37M provide healthy 1.11x coverage of working capital 634.21M, indicating strong liquidity.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 247.51M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 702.37M significantly exceed cash reserves of 128.31M, which is 5.47x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 54.88M, which is 0x, raising concerns about future service delivery capabilities.
  • Long-term investments of 394.60M represent a high 1.60x of fixed assets 246.26M, indicating potential overexposure to financial assets versus operational capabilities.
  • Operating cash flow of 0 provides minimal -0x coverage of tax expenses of (443.61M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Product and Service Breakdown of Revenue (2024)

Consolidation Items Breakdown of Revenue (2024)

Peer comparison

Companies in the Electronic Gaming & Multimedia
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NTES NetEase, Inc. 76.19 Bn 15.89 4.76 0.91 Bn
2 EA Electronic Arts Inc. 50.25 Bn 73.90 6.88 1.89 Bn
3 RBLX Roblox Corp 43.57 Bn -40.91 8.91 1.64 Bn
4 TTWO Take Two Interactive Software Inc 34.06 Bn -8.59 5.19 3.51 Bn
5 PLTK Playtika Holding Corp. 1.22 Bn 14.21 0.45 2.54 Bn
6 SOHU Sohu.com Ltd 0.46 Bn 1.16 0.78 0.00 Bn
7 GRVY GRAVITY Co., Ltd. 0.45 Bn 8.02 1.09 0.00 Bn
8 DDI DoubleDown Interactive Co., Ltd. 0.43 Bn 4.17 1.19 0.04 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.20 0.73
EV to Cash from Ops. EV/CFO -6.73 9.02
EV to Debt EV to Debt 0.00 42.93
EV to EBIT EV/EBIT -6.53 5.14
EV to EBITDA EV/EBITDA -3.81 -0.17
EV to Free Cash Flow [EV/FCF] EV/FCF -4.76 2.00
EV to Market Cap EV to Market Cap 0.71 0.31
EV to Revenue EV/Rev 0.55 -278.61
Price to Book Value [P/B] P/B 0.36 5.21
Price to Earnings [P/E] P/E 1.16 5.61
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1,143.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 15.62
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 21.95
Interest Coverage Int. cover (Qtr) 0.00 2.42
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -144.92
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -19.77 2,047.52
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.39
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 493.04 10.58
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -40.36
EBIT Growth (1y) % EBIT 1y % (Qtr) -2.73 28.44
EBT Growth (1y) % EBT 1y % (Qtr) -2.73 -25.09
EPS Growth (1y) % EPS 1y % (Qtr) 546.01 -25.14
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 -203.71
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 4.69 977.78
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.36 0.61
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.38 1.98
Current Ratio Curr Ratio (Qtr) 2.90 4.93
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -1.05
Interest Cover Ratio Int Coverage (Qtr) 0.00 2.42
Times Interest Earned Times Interest Earned (Qtr) 0.00 2.42
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 9,395.66
EBIT Margin % EBIT Margin % (Qtr) -8.47 10,488.08
EBT Margin % EBT Margin % (Qtr) -8.47 -43,333.75
Gross Margin % Gross Margin % (Qtr) 77.50 57.20
Net Profit Margin % Net Margin % (Qtr) 67.40 -43,332.40