TOP Financial Group Ltd (NASDAQ: TOP)

Sector: Financial Services Industry: Capital Markets CIK: 0001848275
Market Cap 40.34 Mn
P/B 1.15
P/E -7.57
P/S 9.26
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 222,772.00
Debt/Equity (Qtr) 0.01

About

TOP Financial Group Ltd, also known as TOP, operates in the financial services industry and is listed on the US Securities and Exchange Commission (SEC) with the ticker symbol TOP. The company's primary business activities revolve around providing a range of products and services, with a focus on online brokerage services. These services include trading platforms, investment products, and financial advisory services, which are offered to a diverse clientele consisting of individual and institutional investors, as well as financial institutions. The...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 981440 provides robust 4.41x coverage of total debt 222772, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 63.98M provides 287.19x coverage of total debt 222772, indicating robust asset backing and low credit risk.
  • Operating cash flow of 981440 provides strong 14.48x coverage of tax liabilities 67766, showing excellent fiscal position.
  • Cash reserves of 23.57M provide comfortable 347.85x coverage of tax obligations 67766, showing strong fiscal management.
  • Retained earnings of 5.94M provide strong 65.62x coverage of intangibles 90447, indicating quality earnings retention.

Bear case

  • Cash reserves of 23.57M provide limited coverage of acquisition spending of (2.56M), which is -9.19x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 1.12M provides weak coverage of capital expenditures of (136062), with a -8.21 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 981440 barely covers operating expenses of 3.16M with a 0.31 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Retained earnings of 5.94M provide limited buffer against comprehensive income items of (9662), which is -614.26x, indicating elevated exposure to market risks.
  • Tax assets of 0 provide limited offset against tax liabilities of 67766, which is 0x, indicating potential future cash flow pressure from tax obligations.

Peer comparison

Companies in the Capital Markets
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GS Goldman Sachs Group Inc 433.97 Bn 57.26 12.78 911.32 Bn
2 MS Morgan Stanley 314.55 Bn 23.99 5.50 353.12 Bn
3 SCHW Schwab Charles Corp 194.70 Bn 30.37 9.37 27.59 Bn
4 BMNR Bitmine Immersion Technologies, Inc. 148.85 Bn -30.55 20,710.58 0.00 Bn
5 HOOD Robinhood Markets, Inc. 72.97 Bn 33.26 17.36 0.00 Bn
6 LPLA LPL Financial Holdings Inc. 30.55 Bn 68.41 5.00 7.52 Bn
7 IBKR Interactive Brokers Group, Inc. 28.46 Bn 103.89 11.54 28.43 Bn
8 CRCL Circle Internet Group, Inc. 27.14 Bn 172.85 16.04 0.15 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.40 1.29
EV to Cash from Ops. EV/CFO 25.92 -15.44
EV to Debt EV to Debt 114.19 18.96
EV to EBIT EV/EBIT -4.91 32.20
EV to EBITDA EV/EBITDA -4.72 45.42
EV to Free Cash Flow [EV/FCF] EV/FCF 22.76 9.12
EV to Market Cap EV to Market Cap 0.63 1.11
EV to Revenue EV/Rev 5.84 300.60
Price to Book Value [P/B] P/B 1.15 4.37
Price to Earnings [P/E] P/E -7.57 16.68
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.92
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 7.75
Dividend per Basic Share Div per Share (Qtr) 0.00 0.70
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 -8.99
Interest Coverage Interest Coverage 0.00 -165.38
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 4,503.30 -12,127.34
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 8.82 1,715.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.17
EBIAT Growth (1y) % EBIAT Growth (1y) % -73.79 -2,046.50
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 -3,960.13
EBIT Growth (1y) % EBIT Growth (1y) % -69.67 728.13
EBT Growth (1y) % EBT Growth (1y) % -69.67 838.81
EPS Growth (1y) % EPS Growth (1y) % -75.00 26.25
FCF Growth (1y) % FCF Growth (1y) % -84.29 -3,406.06
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 358.50 54.45
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.07 0.42
Cash Payout Ratio Cash Payout Ratio 0.00 -0.09
Cash Ratio Cash Ratio 0.00 1.46
Current Ratio Current Ratio 0.00 2.98
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 1.50
Interest Cover Ratio Interest Cover Ratio 0.00 -165.38
Times Interest Earned Times Interest Earned 0.00 -165.38
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -959.56
EBIT Margin % EBIT Margin % -118.99 -1,006.04
EBT Margin % EBT Margin % -118.99 -981.88
Gross Margin % Gross Margin % 18.90 53.03
Net Profit Margin % Net Profit Margin % -122.30 -988.00