Usio, Inc. (NASDAQ: USIO)

Sector: Technology Industry: Software - Infrastructure CIK: 0001088034
Market Cap 26.76 Mn
P/B 1.43
P/E -69.00
P/S 0.32
ROIC (Qtr) -9.20
Div Yield % 0.00
Rev 1y % (Qtr) -0.66
Total Debt (Qtr) 3.52 Mn
Debt/Equity (Qtr) 0.19

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 11.93M provides robust 3.39x coverage of total debt 3.52M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 9.69M provide 10.99x coverage of short-term debt 881571, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 99.17M provides 28.18x coverage of total debt 3.52M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 11.93M provides exceptional 252.96x coverage of interest expenses 47173, showing strong debt service capability.
  • Robust free cash flow of 10.55M exceeds capital expenditure of 1.39M by 7.62x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 11.93M barely covers its investment activities of (1.39M), with a coverage ratio of -8.62, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • High receivables of 5.21M relative to inventory of 337693 (15.43 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of 208676 show weak coverage of depreciation charges of 1.95M, with a 0.11 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 11.93M is outpaced by equity issuance of (1.66M) (-7.18 ratio), indicating concerning reliance on equity markets for funding operations.
  • R&D investment of 0 represents just 0x of SG&A expenses of 18.86M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.21 2.69
EV to Cash from Ops. EV/CFO 1.74 28.91
EV to Debt EV to Debt 5.89 19.83
EV to EBIT EV/EBIT 99.42 -9.95
EV to EBITDA EV/EBITDA 84.58 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 1.97 26.09
EV to Market Cap EV to Market Cap 0.78 0.36
EV to Revenue EV/Rev 0.25 -9.34
Price to Book Value [P/B] P/B 1.43 3.88
Price to Earnings [P/E] P/E -69.00 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) 4.42 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -46.45 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -5.20 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -123.82 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -81.94 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 231.74 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 179.34 14.16
EPS Growth (1y) % EPS 1y % (Qtr) -122.22 67.50
FCF Growth (1y) % FCF 1y % (Qtr) 128.47 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.38 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.84 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.12 1.22
Current Ratio Curr Ratio (Qtr) 1.13 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.19 -0.96
Interest Cover Ratio Int Coverage (Qtr) 4.42 -14.20
Times Interest Earned Times Interest Earned (Qtr) 4.42 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.60 -548.16
EBIT Margin % EBIT Margin % (Qtr) 0.25 -199.84
EBT Margin % EBT Margin % (Qtr) 0.19 -607.20
Gross Margin % Gross Margin % (Qtr) 23.80 51.88
Net Profit Margin % Net Margin % (Qtr) -0.50 -610.00