Treasure Global Inc (NASDAQ: TGL)

Sector: Technology Industry: Software - Application CIK: 0001905956
Market Cap 435,215.85
P/B 0.04
P/E -0.02
P/S 0.19
ROIC (Qtr) -199.50
Div Yield % 0.00
Rev 1y % (Qtr) -11.98
Total Debt (Qtr) 143,113.00
Debt/Equity (Qtr) 0.01

About

Treasure Global Inc (TGL) is a company that operates in the e-commerce industry, specifically in the online-to-offline (O2O) e-commerce platform business model. The company's mission is to bridge the gap between online e-commerce and offline physical retailers, providing a seamless shopping experience for consumers and merchants alike. Treasure Global Inc's primary product is the ZCITY App, a proprietary internet application that offers consumers and merchants instant rebates and affiliate cashback programs. The app was successfully launched in...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 1.25M provide 15.43x coverage of short-term debt 81026, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 13.55M provides 94.68x coverage of total debt 143113, indicating robust asset backing and low credit risk.
  • Strong free cash flow of (10.89M) provides 47.26x coverage of acquisition spending (230376), indicating disciplined M&A strategy.
  • Robust tangible asset base of 13.55M provides 16.95x coverage of working capital 799590, indicating strong operational backing.
  • Cash reserves of 1.25M provide solid 1.21x coverage of other non-current liabilities 1.04M, indicating strong liquidity.

Bear case

  • Investment activities of (4.99M) provide weak support for R&D spending of 946664, which is -5.27x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 1.25M provide limited coverage of acquisition spending of (230376), which is -5.43x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (10.27M) shows concerning coverage of stock compensation expenses of 238445, with a -43.06 ratio indicating potential earnings quality issues.
  • High receivables of 2.75M relative to inventory of 21140 (129.94 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (10.89M) provides weak coverage of capital expenditures of 620828, with a -17.54 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 0.01 2.65
EV to Cash from Ops. EV/CFO -0.02 13.37
EV to Debt EV to Debt 1.48 57.69
EV to EBIT EV/EBIT -0.01 19.12
EV to EBITDA EV/EBITDA -0.01 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF -0.02 14.69
EV to Market Cap EV to Market Cap 0.49 -92.28
EV to Revenue EV/Rev 0.09 4.60
Price to Book Value [P/B] P/B 0.04 4.26
Price to Earnings [P/E] P/E -0.02 -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) -5,816.14 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -5,809.27 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1,623.35 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -356.71 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -472.81 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -353.46 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -351.13 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) -118.95 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -186.14 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 81.56 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.14 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.36 3.75
Current Ratio Curr Ratio (Qtr) 1.23 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.17
Interest Cover Ratio Int Coverage (Qtr) -5,816.14 -52.32
Times Interest Earned Times Interest Earned (Qtr) -5,816.14 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1,024.50 -100.06
EBIT Margin % EBIT Margin % (Qtr) -1,050.37 -164.24
EBT Margin % EBT Margin % (Qtr) -1,050.55 -116.94
Gross Margin % Gross Margin % (Qtr) 65.00 58.20
Net Profit Margin % Net Margin % (Qtr) -1,065.20 -121.65