China SXT Pharmaceuticals, Inc. (NASDAQ: SXTC)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001723980
Market Cap 6.66 Mn
P/B 0.33
P/E -0.75
P/S 36,194.02
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 1.20 Mn
Debt/Equity (Qtr) 0.06

About

China SXT Pharmaceuticals, Inc., also known as SXTC, is a company that operates within the pharmaceutical industry, with a specific focus on Traditional Chinese Medicine (TCM). The company conducts its business primarily in China, engaging in the research, development, manufacture, marketing, and sales of TCM products. SXTC's operations are centered around three main categories of TCM products: Advanced TCMP, Fine TCMP, and Regular TCMP. Advanced TCMP is the company's primary product, accounting for nearly half of the total revenue generated in...

Read more

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 21.20M provide 20.29x coverage of short-term debt 1.04M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of (2.72M) exceeds capital expenditure of (22972) by 118.31x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 26.34M provides 21.90x coverage of total debt 1.20M, indicating robust asset backing and low credit risk.
  • Tangible assets of 26.34M provide exceptional 404.95x coverage of deferred revenue 65057, showing strong service capability backing.
  • Operating cash flow of (2.74M) fully covers other non-current liabilities (65058) by 42.13x, showing strong long-term stability.

Bear case

  • Operating cash flow of (2.74M) provides insufficient coverage of deferred revenue obligations of 65057, which is -42.13x, raising concerns about future service delivery capabilities.
  • High receivables of 3.79M relative to inventory of 751346 (5.04 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of (8.37M) show weak coverage of depreciation charges of 115238, with a -72.66 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (2.72M) represents just -0.57x of debt issuance 4.81M, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Tangible assets of 26.34M provide limited backing for working capital of 20.08M, which is 1.31x, suggesting increased operational risk in market downturns.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.40 24.98
EV to Cash from Ops. EV/CFO 3.83 -85.40
EV to Debt EV to Debt -8.71 265.88
EV to EBIT EV/EBIT 1.25 -32.65
EV to EBITDA EV/EBITDA 1.42 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF 3.86 -32.62
EV to Market Cap EV to Market Cap -1.57 -10.98
EV to Revenue EV/Rev -56,988.35 -700.14
Price to Book Value [P/B] P/B 0.33 27.22
Price to Earnings [P/E] P/E -0.75 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.34
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 4.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 4.08
Interest Coverage Interest Coverage -16.84 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % -31.39 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 14.50 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT Growth (1y) % -235.37 24.45
EBITDA Growth (1y) % EBITDA Growth (1y) % -199.01 18.14
EBIT Growth (1y) % EBIT Growth (1y) % -235.37 37.66
EBT Growth (1y) % EBT Growth (1y) % -253.06 108.18
EPS Growth (1y) % EPS Growth (1y) % 77.54 52.88
FCF Growth (1y) % FCF Growth (1y) % -1.71 -54.47
Gross Profit Growth (1y) % Gross Profit Growth (1y) % -16.24 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.00 0.50
Cash Payout Ratio Cash Payout Ratio 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 3.56 2.10
Current Ratio Curr Ratio (Qtr) 4.37 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.06 -1.11
Interest Cover Ratio Interest Cover Ratio -16.84 -38.10
Times Interest Earned Times Interest Earned -16.84 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % -4,487,812.50 -62,432.09
EBIT Margin % EBIT Margin % -4,550,441.85 -63,260.88
EBT Margin % EBT Margin % -4,820,590.76 -66,726.96
Gross Margin % Gross Margin % 654,226.10 8,332.72
Net Profit Margin % Net Profit Margin % -4,820,590.80 -66,728.37