VirnetX Holding Corp (NASDAQ: VHC)

Sector: Technology Industry: Software - Infrastructure CIK: 0001082324
P/B 2.31
P/E -3.79
P/S 670.34
Market Cap 67.70 Mn
ROIC (Qtr) -60.23
Div Yield % 0.00
Rev 1y % (Qtr) 2,800.00
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Stock Price Chart

Analysis

Pros

  • Short-term investments of 11.06M provide solid 6.53x coverage of other current liabilities 1.70M, indicating strong liquidity.
  • Tangible assets of 37.98M provide robust 22.41x coverage of other current liabilities 1.70M, indicating strong asset backing.
  • Strong cash position of 17.13M provides 10.11x coverage of other current liabilities 1.70M, indicating excellent liquidity.
  • Cash reserves of 17.13M provide robust 8.27x coverage of current liabilities 2.07M, indicating strong short-term solvency.
  • Cash reserves of 17.13M provide solid 2.59x coverage of other non-current liabilities 6.62M, indicating strong liquidity.

Cons

  • Operating cash flow of (15.35M) barely covers its investment activities of 7.48M, with a coverage ratio of -2.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 7.48M provide weak support for R&D spending of 5.99M, which is 1.25x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (15.35M) shows concerning coverage of stock compensation expenses of 1.85M, with a -8.30 ratio indicating potential earnings quality issues.
  • Free cash flow of (15.37M) provides weak coverage of capital expenditures of 28000, with a -549.07 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (17.86M) show weak coverage of depreciation charges of 21000, with a -850.52 ratio indicating high capital intensity and potential reinvestment needs.

Peer Comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,542.10 Bn 33.76 12.06 60.56 Bn
2 ORCL Oracle Corp 533.93 Bn 34.61 8.75 124.39 Bn
3 PLTR Palantir Technologies Inc. 437.56 Bn 399.47 112.31 0.24 Bn
4 PANW Palo Alto Networks Inc 125.16 Bn 112.03 13.10 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 120.85 Bn -384.67 26.47 0.82 Bn
6 SNPS Synopsys Inc 71.69 Bn 35.89 11.14 15.14 Bn
7 NET Cloudflare, Inc. 67.84 Bn -658.43 33.70 3.50 Bn
8 FTNT Fortinet, Inc. 63.33 Bn 33.80 9.66 1.00 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 1.33 2.56
EV to Cash from Ops. -3.29 38.32
EV to Debt 0.00 -11.37
EV to EBIT -2.82 -12.79
EV to EBITDA -2.68 7.72
EV to Free Cash Flow [EV/FCF] -3.28 24.22
EV to Market Cap 0.74 0.58
EV to Revenue 499.13 -35.00
Price to Book Value [P/B] 2.31 3.74
Price to Earnings [P/E] -3.79 -18.61

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % 0.00 2.69
Dividend per Basic Share 0.00 0.10
FCF Dividend Payout Ratio % 0.00 1.67
Interest Coverage 0.00 -13.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 63.16 -404.11
Cash and Equivalents Growth (1y) % -31.84 226.02
Dividend Growth (1y) % 0.00 -0.27
EBIAT Growth (1y) % 6.31 31.15
EBITDA Growth (1y) % 12.59 49.02
EBIT Growth (1y) % 6.31 25.85
EBT Growth (1y) % 6.31 17.82
EPS Growth (1y) % 7.88 70.69
FCF Growth (1y) % 9.08 295.45
Gross Profit Growth (1y) % 2,625.00 49.96

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.00 0.68
Cash Payout Ratio 0.00 0.02
Cash Ratio 8.27 1.21
Current Ratio 13.72 2.57
Debt to Equity Ratio 0.00 -0.93
Interest Cover Ratio 0.00 -13.15
Times Interest Earned 0.00 -13.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % -17,663.40 -544.82
EBIT Margin % -17,684.16 -197.78
EBT Margin % -17,684.16 -602.74
Gross Margin % 100.00 52.06
Net Profit Margin % -17,686.10 -605.52