Trailblazer Merger Corp I (NASDAQ: TBMC)

Sector: Financial Services Industry: Shell Companies CIK: 0001934945
Market Cap 67.40 Mn
P/B -5.68
P/E -13.92
P/S 0.00
ROIC (Qtr) 60.35
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 7.39 Mn
Debt/Equity (Qtr) -0.62
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About

Trailblazer Merger Corp I, also known as TBMC, operates in the technology industry as a blank check company. Its main business activities involve searching for a target business in the technology sector to merge with, capital stock exchange, acquire assets, purchase stocks, reorganize, or engage in similar business combinations. The company's management team, who have extensive buy-side investing experience and a deep network of CEO-level and other C-suite/board relationships, will lead the search for a suitable target business. TBMC generates...

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Investment thesis

Bull case

  • Strong tangible asset base of 28.10M provides 3.80x coverage of total debt 7.39M, indicating robust asset backing and low credit risk.
  • Retained earnings of (11.87M) represent substantial 1x of equity (11.87M), indicating strong internal capital generation.
  • Short-term investments of 23.95M provide 3.24x coverage of short-term debt 7.39M, showing strong liquidity management.

Bear case

  • Operating cash flow of (2.82M) barely covers its investment activities of 50.03M, with a coverage ratio of -0.06, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Short-term investments of 23.95M significantly exceed cash reserves of 19183, which is 1248.52x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Operating cash flow of (2.82M) provides minimal -8.45x coverage of tax expenses of 333900, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • High financing cash flow of (47.65M) relative to working capital of (10.05M), which is 4.74x suggests concerning dependence on external funding for operational needs.
  • Free cash flow of (2.82M) represents just -1.33x of debt issuance 2.13M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Shell Companies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ANSC Agriculture & Natural Solutions Acquisition Corp 493.77 Mn 56.15 0.00 0.84 Mn
2 CCIX Churchill Capital Corp IX/Cayman 395.47 Mn 46.22 0.00 0.00 Mn
3 ALF Centurion Acquisition Corp. 394.73 Mn 32.55 0.00 0.01 Mn
4 GPAT GP-Act III Acquisition Corp. 389.33 Mn 31.65 0.00 0.40 Mn
5 HYAC Haymaker Acquisition Corp. 4 338.26 Mn 38.17 0.00 1.88 Mn
6 SIMA SIM Acquisition Corp. I 328.57 Mn 35.70 0.00 0.00 Mn
7 AFJK Aimei Health Technology Co., Ltd. 303.65 Mn 216.00 0.00 1.66 Mn
8 GRAF Graf Global Corp. 300.58 Mn 34.68 0.00 0.00 Mn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.48 0.95
EV to Cash from Ops. EV/CFO -24.75 18.30
EV to Debt EV to Debt 9.44 125,153.88
EV to EBIT EV/EBIT -15.49 34.06
EV to EBITDA EV/EBITDA -28.21 -165.45
EV to Free Cash Flow [EV/FCF] EV/FCF -24.75 18.30
EV to Market Cap EV to Market Cap 1.04 0.63
EV to Revenue EV to Revenue 0.00 0.00
Price to Book Value [P/B] P/B -5.68 -20.50
Price to Earnings [P/E] P/E -13.92 -125.27
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.04
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.00
Interest Coverage Interest Coverage 0.00 2.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 0.00
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -95.85 410.95
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -441.39 282.79
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -54.24 -126.98
EBIT Growth (1y) % EBIT 1y % (Qtr) -303.60 304.32
EBT Growth (1y) % EBT 1y % (Qtr) -303.60 303.65
EPS Growth (1y) % EPS 1y % (Qtr) -78.95 956.13
FCF Growth (1y) % FCF 1y % (Qtr) -212.24 -37.62
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 0.00
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.00
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.00 52.04
Current Ratio Curr Ratio (Qtr) 0.71 4.89
Debt to Equity Ratio Debt/Equity (Qtr) -0.62 -0.27
Interest Cover Ratio Interest Cover Ratio 0.00 2.94
Times Interest Earned Times Interest Earned 0.00 2.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 0.00
EBIT Margin % EBIT Margin % 0.00 0.00
EBT Margin % EBT Margin % 0.00 0.00
Gross Margin % Gross Margin % 0.00 0.00
Net Profit Margin % Net Profit Margin % 0.00 0.00