Venu Holding Corp (NYSE: VENU)

Sector: Consumer Cyclical Industry: Restaurants CIK: 0001770501
Market Cap 304.94 Mn
P/B 2.52
P/E -7.22
P/S 17.29
ROIC (Qtr) -28.49
Div Yield % 0.00
Rev 1y % (Qtr) -1.23
Total Debt (Qtr) 60.03 Mn
Debt/Equity (Qtr) 0.50

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 58.18M provide 83.43x coverage of short-term debt 697359, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 314.65M provides 5.24x coverage of total debt 60.03M, indicating robust asset backing and low credit risk.
  • Tangible assets of 314.65M provide exceptional 156.04x coverage of deferred revenue 2.02M, showing strong service capability backing.
  • Robust tangible asset base of 314.65M provides 10.25x coverage of working capital 30.70M, indicating strong operational backing.
  • Cash reserves of 58.18M provide ample 93.43x coverage of acquisition spending 622729, enabling strategic growth opportunities.

Bear case

  • Operating cash flow of (14.77M) barely covers its investment activities of (86.67M), with a coverage ratio of 0.17, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (14.77M) provides insufficient coverage of deferred revenue obligations of 2.02M, which is -7.32x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (14.77M) shows concerning coverage of stock compensation expenses of 22.47M, with a -0.66 ratio indicating potential earnings quality issues.
  • Free cash flow of (102.06M) provides weak coverage of capital expenditures of 87.30M, with a -1.17 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (38.22M) show weak coverage of depreciation charges of 5.92M, with a -6.45 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Restaurants
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MCD Mcdonalds Corp 222.05 Bn 26.39 8.45 55.82 Bn
2 SBUX Starbucks Corp 95.51 Bn 51.45 2.57 26.61 Bn
3 CMG Chipotle Mexican Grill Inc 50.94 Bn 33.15 4.32 4.98 Bn
4 YUM Yum Brands Inc 43.17 Bn 29.83 5.36 11.55 Bn
5 QSR Restaurant Brands International Inc. 22.43 Bn 24.33 2.42 15.64 Bn
6 DRI Darden Restaurants Inc 21.91 Bn 19.91 1.77 6.16 Bn
7 YUMC Yum China Holdings, Inc. 18.12 Bn 20.05 1.57 1.84 Bn
8 DPZ Dominos Pizza Inc 14.57 Bn 24.72 3.01 5.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.00 2.05
EV to Cash from Ops. EV/CFO -21.23 16.57
EV to Debt EV to Debt 5.22 4.75
EV to EBIT EV/EBIT -8.20 3.45
EV to EBITDA EV/EBITDA -7.98 9.76
EV to Free Cash Flow [EV/FCF] EV/FCF -3.07 29.06
EV to Market Cap EV to Market Cap 1.03 6.55
EV to Revenue EV/Rev 17.77 2.40
Price to Book Value [P/B] P/B 2.52 -1.40
Price to Earnings [P/E] P/E -7.22 13.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -487.35 -9.56
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 18.72
Dividend per Basic Share Div per Share (Qtr) 0.00 0.84
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 30.41
Interest Coverage Int. cover (Qtr) -9.78 -86.85
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -18.62 -24.56
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 62.53 35.50
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.72
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -57.16 -564.81
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -89.95 25.78
EBIT Growth (1y) % EBIT 1y % (Qtr) -57.16 -507.68
EBT Growth (1y) % EBT 1y % (Qtr) -56.79 -41.98
EPS Growth (1y) % EPS 1y % (Qtr) -365.38 -126.51
FCF Growth (1y) % FCF 1y % (Qtr) -74.13 5,724.78
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -14.60 23.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.06 0.99
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 1.94 0.78
Current Ratio Curr Ratio (Qtr) 2.02 1.47
Debt to Equity Ratio Debt/Equity (Qtr) 0.50 0.05
Interest Cover Ratio Int Coverage (Qtr) -9.78 -86.85
Times Interest Earned Times Interest Earned (Qtr) -9.78 -86.85
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -183.10 7.71
EBIT Margin % EBIT Margin % (Qtr) -216.69 -2.27
EBT Margin % EBT Margin % (Qtr) -238.85 -1.97
Gross Margin % Gross Margin % (Qtr) 35.20 34.04
Net Profit Margin % Net Margin % (Qtr) -239.30 -3.69