Upexi, Inc. (NASDAQ: UPXI)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001775194
Market Cap 215.88 Mn
P/B 4.43
P/E -1.76
P/S 8.73
ROIC (Qtr) -35.58
Div Yield % 0.00
Rev 1y % (Qtr) 101.02
Total Debt (Qtr) 213.48 Mn
Debt/Equity (Qtr) 4.38
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About

Upexi, Inc., also known as UPXI, operates in the health, wellness, pet, beauty, and other growing markets. As a multi-faceted brand owner, the company runs its business activities in various sectors, including direct-to-consumer and Amazon brands that are scalable and have high industry growth trends. Upexi's operations span across different countries and regions, focusing on emerging industries with high growth trends. The company generates revenue through the distribution of its own brands, as well as non-owned brands, across multiple channels,...

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Investment thesis

Bull case

  • Tangible assets of 269.60M provide exceptional 5701.27x coverage of deferred revenue 47287, showing strong service capability backing.
  • Operating cash flow of (17.53M) fully covers other non-current liabilities (47287) by 370.64x, showing strong long-term stability.
  • Strong free cash flow of (17.78M) provides 30.92x coverage of acquisition spending (575000), indicating disciplined M&A strategy.
  • Short-term investments of 164.70M provide solid 20.52x coverage of other current liabilities 8.03M, indicating strong liquidity.
  • Tangible assets of 269.60M provide robust 33.59x coverage of other current liabilities 8.03M, indicating strong asset backing.

Bear case

  • Operating cash flow of (17.53M) barely covers its investment activities of (141.96M), with a coverage ratio of 0.12, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 1.62M provide limited coverage of acquisition spending of (575000), which is -2.81x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (17.53M) provides insufficient coverage of deferred revenue obligations of 47287, which is -370.64x, raising concerns about future service delivery capabilities.
  • Short-term investments of 164.70M significantly exceed cash reserves of 1.62M, which is 101.87x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (17.53M) shows concerning coverage of stock compensation expenses of 16.24M, with a -1.08 ratio indicating potential earnings quality issues.

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 3,658.84 Bn 27.68 9.08 59.29 Bn
2 META Meta Platforms, Inc. 1,611.77 Bn 26.66 8.02 83.90 Bn
3 SPOT Spotify Technology S.A. 95.06 Bn 36.53 4.70 2.22 Bn
4 BIDU Baidu, Inc. 53.09 Bn 42.00 2.90 13.66 Bn
5 NBIS Nebius Group N.V. 27.43 Bn 269.75 51.78 4.89 Bn
6 RDDT Reddit, Inc. 25.97 Bn 49.02 11.79 0.02 Bn
7 TME Tencent Music Entertainment Group 23.51 Bn 15.03 5.28 0.54 Bn
8 BILI Bilibili Inc. 12.86 Bn 118.92 3.08 1.36 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.53 0.89
EV to Cash from Ops. EV/CFO -23.65 -2.77
EV to Debt EV to Debt 1.94 30.99
EV to EBIT EV/EBIT -3.57 2.55
EV to EBITDA EV/EBITDA -3.47 4.60
EV to Free Cash Flow [EV/FCF] EV/FCF -23.31 15.68
EV to Market Cap EV to Market Cap 1.92 1.23
EV to Revenue EV/Rev 16.75 63.03
Price to Book Value [P/B] P/B 4.43 1.29
Price to Earnings [P/E] P/E -1.76 17.11
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.66
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.48
Interest Coverage Int. cover (Qtr) -16.66 -209.50
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -107.46 -31.77
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 297.88 187.77
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.48
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -413.75 -1.13
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -550.00 -497.28
EBIT Growth (1y) % EBIT 1y % (Qtr) -431.96 20.22
EBT Growth (1y) % EBT 1y % (Qtr) -421.59 -38.13
EPS Growth (1y) % EPS 1y % (Qtr) 98.15 -32.36
FCF Growth (1y) % FCF 1y % (Qtr) -603.56 25.84
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 128.56 22.57
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.09 0.73
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.02 1.45
Current Ratio Curr Ratio (Qtr) 2.20 3.29
Debt to Equity Ratio Debt/Equity (Qtr) 4.38 -0.34
Interest Cover Ratio Int Coverage (Qtr) -16.66 -209.50
Times Interest Earned Times Interest Earned (Qtr) -16.66 -209.50
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -466.50 -4,353.96
EBIT Margin % EBIT Margin % (Qtr) -468.75 -4,865.94
EBT Margin % EBT Margin % (Qtr) -496.88 -5,084.75
Gross Margin % Gross Margin % (Qtr) 80.70 58.51
Net Profit Margin % Net Margin % (Qtr) -496.90 -5,086.49