Silvaco Group, Inc. (NASDAQ: SVCO)

Sector: Technology Industry: Software - Application CIK: 0001943289
Market Cap 140.78 Mn
P/B 1.78
P/E -4.72
P/S 2.25
ROIC (Qtr) -25.61
Div Yield % 0.00
Rev 1y % (Qtr) 70.18
Total Debt (Qtr) 5.85 Mn
Debt/Equity (Qtr) 0.07

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 24.32M provide 11.17x coverage of short-term debt 2.18M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 72.89M provides 12.46x coverage of total debt 5.85M, indicating robust asset backing and low credit risk.
  • Operating cash flow of (33.54M) fully covers other non-current liabilities (10.25M) by 3.27x, showing strong long-term stability.
  • Robust tangible asset base of 72.89M provides 6.49x coverage of working capital 11.24M, indicating strong operational backing.
  • R&D investment of 24.73M represents healthy 1.52x of deferred revenue 16.31M, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of (33.54M) barely covers its investment activities of 37.61M, with a coverage ratio of -0.89, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 24.32M provide limited coverage of acquisition spending of (32.88M), which is -0.74x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (33.54M) provides insufficient coverage of deferred revenue obligations of 16.31M, which is -2.06x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (33.54M) shows concerning coverage of stock compensation expenses of 10M, with a -3.36 ratio indicating potential earnings quality issues.
  • Free cash flow of (34.28M) provides weak coverage of capital expenditures of 741000, with a -46.26 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.89 2.65
EV to Cash from Ops. EV/CFO -3.47 13.37
EV to Debt EV to Debt 19.89 57.69
EV to EBIT EV/EBIT -3.44 19.12
EV to EBITDA EV/EBITDA -3.42 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF -3.39 14.69
EV to Market Cap EV to Market Cap 0.83 -92.28
EV to Revenue EV/Rev 1.86 4.60
Price to Book Value [P/B] P/B 1.78 4.26
Price to Earnings [P/E] P/E -4.72 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) -46.99 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -58.33 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -8.59 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 34.89 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 21.84 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 22.25 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 22.26 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 49.18 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -233.25 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 18.07 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.48 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.58 3.75
Current Ratio Curr Ratio (Qtr) 1.27 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.07 0.17
Interest Cover Ratio Int Coverage (Qtr) -46.99 -52.32
Times Interest Earned Times Interest Earned (Qtr) -46.99 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -49.70 -100.06
EBIT Margin % EBIT Margin % (Qtr) -53.91 -164.24
EBT Margin % EBT Margin % (Qtr) -55.06 -116.94
Gross Margin % Gross Margin % (Qtr) 79.10 58.20
Net Profit Margin % Net Margin % (Qtr) -47.60 -121.65