Tron Inc. (NASDAQ: TRON)

Sector: Consumer Cyclical Industry: Leisure CIK: 0001956744
Market Cap 160.21 Mn
P/B 0.67
P/E 13.33
P/S 35.94
ROIC (Qtr) -1.33
Div Yield % 0.00
Rev 1y % (Qtr) 26.00
Total Debt (Qtr) 736,411.00
Debt/Equity (Qtr) 0.00
Add ratio to table...

About

SRM Entertainment, Inc. (SRM), a company operating in the entertainment industry, is primarily engaged in the production and distribution of content across various platforms, as well as managing entertainment venues and events. The company's main business activities encompass the creation of movies, television shows, and music, which are distributed through multiple channels such as theatrical releases, television broadcasts, and digital streaming platforms. SRM Entertainment's operations span different countries and regions, making it a global...

Read more

Investment thesis

Bull case

  • Healthy cash reserves of 10.60M provide 49.36x coverage of short-term debt 214833, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 242.02M provides 328.65x coverage of total debt 736411, indicating robust asset backing and low credit risk.
  • Long-term investments of 228.42M provide solid 437.94x coverage of long-term debt 521578, indicating strategic financial planning.
  • Robust tangible asset base of 242.02M provides 20.29x coverage of working capital 11.93M, indicating strong operational backing.
  • Tangible assets of 242.02M provide robust 578.02x coverage of other current liabilities 418706, indicating strong asset backing.

Bear case

  • The company's operating cash flow of (2.19M) shows concerning coverage of stock compensation expenses of 986261, with a -2.22 ratio indicating potential earnings quality issues.
  • Operating cash flow of (2.19M) provides minimal -0.63x coverage of tax expenses of 3.45M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Long-term investments of 228.42M represent a high 276.69x of fixed assets 825532, indicating potential overexposure to financial assets versus operational capabilities.
  • High financing cash flow of 11.77M relative to working capital of 11.93M, which is 0.99x suggests concerning dependence on external funding for operational needs.
  • Operating cash flow of (2.19M) is outpaced by equity issuance of 7.79M (-0.28 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Leisure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AS Amer Sports, Inc. 22.38 Bn 71.89 3.67 1.87 Bn
2 HAS Hasbro, Inc. 13.30 Bn 46.47 3.26 3.32 Bn
3 PLNT Planet Fitness, Inc. 7.78 Bn 37.79 6.04 2.58 Bn
4 GOLF Acushnet Holdings Corp. 7.40 Bn 80.24 4.75 0.90 Bn
5 LTH Life Time Group Holdings, Inc. 6.29 Bn 21.85 2.16 4.13 Bn
6 MAT Mattel Inc /De/ 5.43 Bn 12.57 1.04 2.59 Bn
7 YETI YETI Holdings, Inc. 3.97 Bn 24.75 2.17 0.22 Bn
8 MSGE Madison Square Garden Entertainment Corp. 2.95 Bn 56.80 2.91 1.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.63 1.19
EV to Cash from Ops. EV/CFO -70.71 -6.09
EV to Debt EV to Debt 210.37 14.49
EV to EBIT EV/EBIT 9.99 -159.90
EV to EBITDA EV/EBITDA -56.28 -4.06
EV to Free Cash Flow [EV/FCF] EV/FCF -70.71 0.74
EV to Market Cap EV to Market Cap 0.97 -0.64
EV to Revenue EV/Rev 34.75 4.65
Price to Book Value [P/B] P/B 0.67 4.75
Price to Earnings [P/E] P/E 13.33 12.00
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.51
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.11
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.13
Interest Coverage Int. cover (Qtr) 394.84 -30.68
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -13.50
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 933.10 1,190.33
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 13.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 393.24 -111.75
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 33.15 -165.31
EBIT Growth (1y) % EBIT 1y % (Qtr) 477.55 -1,562.20
EBT Growth (1y) % EBT 1y % (Qtr) 475.77 -1,555.34
EPS Growth (1y) % EPS 1y % (Qtr) 121.95 -377.44
FCF Growth (1y) % FCF 1y % (Qtr) -6.44 10.93
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.18 17.65
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.73
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 12.48 3.31
Current Ratio Curr Ratio (Qtr) 15.04 4.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 2.35
Interest Cover Ratio Int Coverage (Qtr) 394.84 -30.68
Times Interest Earned Times Interest Earned (Qtr) 394.84 -30.68
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 353.70 -57.55
EBIT Margin % EBIT Margin % (Qtr) 347.94 -65.38
EBT Margin % EBT Margin % (Qtr) 347.06 -69.55
Gross Margin % Gross Margin % (Qtr) 23.00 46.51
Net Profit Margin % Net Margin % (Qtr) 269.60 -74.45