SU Group Holdings Ltd (NASDAQ: SUGP)

Sector: Industrials Industry: Security & Protection Services CIK: 0001969863
Market Cap 7.61 Mn
P/B 0.69
P/E -3.20
P/S 0.31
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 960,778.02
Debt/Equity (Qtr) 0.09
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About

Investment thesis

Bull case

  • Healthy cash reserves of 3.26M provide 6.44x coverage of short-term debt 505721.47, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 16M provides 16.65x coverage of total debt 960778.02, indicating robust asset backing and low credit risk.
  • Long-term investments of 1.27M provide solid 2.79x coverage of long-term debt 455056.56, indicating strategic financial planning.
  • Retained earnings of 4.22M provide full 9.28x coverage of long-term debt 455056.56, indicating strong internal capital position.
  • Tangible assets of 16M provide exceptional 10.98x coverage of deferred revenue 1.46M, showing strong service capability backing.

Bear case

  • Operating cash flow of (1.99M) provides insufficient coverage of deferred revenue obligations of 1.46M, which is -1.36x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (1.99M) shows concerning coverage of stock compensation expenses of 377920.82, with a -5.26 ratio indicating potential earnings quality issues.
  • Free cash flow of (2.20M) provides weak coverage of capital expenditures of 210865.55, with a -10.42 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (2.44M) show weak coverage of depreciation charges of 476557.07, with a -5.12 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (1.99M) barely covers operating expenses of 258139.33 with a -7.70 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Security & Protection Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ALLE Allegion plc 14.00 Bn 21.75 3.44 1.98 Bn
2 MSA MSA Safety Inc 7.99 Bn 374.33 5.71 0.63 Bn
3 BCO Brinks Co 6.24 Bn 112.89 1.74 4.32 Bn
4 BRC Brady Corp 4.99 Bn 38.51 4.29 0.18 Bn
5 ADT ADT Inc. 4.95 Bn -9.23 1.68 7.81 Bn
6 CXW CoreCivic, Inc. 2.04 Bn 18.69 0.98 1.04 Bn
7 GEO Geo Group Inc 2.02 Bn 8.48 0.80 1.63 Bn
8 NSSC Napco Security Technologies, Inc 1.57 Bn 33.18 8.19 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.08 1.53
EV to Cash from Ops. EV/CFO -0.65 15.25
EV to Debt EV to Debt 1.33 44.60
EV to EBIT EV/EBIT -0.53 8.47
EV to EBITDA EV/EBITDA -0.61 14.35
EV to Free Cash Flow [EV/FCF] EV/FCF -0.58 28.03
EV to Market Cap EV to Market Cap 0.17 0.95
EV to Revenue EV/Rev 0.05 2.53
Price to Book Value [P/B] P/B 0.69 3.48
Price to Earnings [P/E] P/E -3.20 32.21
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 106.48
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 25.28
Dividend per Basic Share Div per Share (Qtr) 0.00 0.36
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 7.91
Interest Coverage Interest Coverage -127.48 -11.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 45.52 -7.19
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -51.43 23.04
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -3.73
EBIAT Growth (1y) % EBIAT Growth (1y) % -269.90 35.26
EBITDA Growth (1y) % EBITDA Growth (1y) % -215.13 87.34
EBIT Growth (1y) % EBIT Growth (1y) % -256.59 29.11
EBT Growth (1y) % EBT Growth (1y) % -260.33 41.98
EPS Growth (1y) % EPS Growth (1y) % -263.75 37.27
FCF Growth (1y) % FCF Growth (1y) % -254.72 -41.16
Gross Profit Growth (1y) % Gross Profit Growth (1y) % -35.24 7.42
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.20 0.71
Cash Payout Ratio Cash Payout Ratio 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.74 1.61
Current Ratio Curr Ratio (Qtr) 2.82 3.37
Debt to Equity Ratio Debt/Equity (Qtr) 0.09 1.13
Interest Cover Ratio Interest Cover Ratio -127.48 -11.72
Times Interest Earned Times Interest Earned -127.48 -11.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % -7.90 -5.57
EBIT Margin % EBIT Margin % -76.75 -15.45
EBT Margin % EBT Margin % -9.94 -14.45
Gross Margin % Gross Margin % 16.00 38.13
Net Profit Margin % Net Profit Margin % -9.60 -16.17