WORK Medical Technology Group LTD (NASDAQ: WOK)

Sector: Healthcare Industry: Medical Devices CIK: 0001929783
Market Cap 3,996.18
P/B 0.00
P/E 0.00
P/S 0.00
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 6.42 Mn
Debt/Equity (Qtr) 0.35
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About

Investment thesis

Bull case

  • Strong operating cash flow of 6.24M provides robust 0.97x coverage of total debt 6.42M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 6.24M provides exceptional 12.40x coverage of interest expenses 503519, showing strong debt service capability.
  • Strong tangible asset base of 32.20M provides 5.02x coverage of total debt 6.42M, indicating robust asset backing and low credit risk.
  • Tangible assets of 32.20M provide exceptional 80.01x coverage of deferred revenue 402407, showing strong service capability backing.
  • Robust free cash flow of 5.38M exceeds capital expenditure of 859578 by 6.26x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 6.24M barely covers its investment activities of (7.61M), with a coverage ratio of -0.82, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (7.61M) provide weak support for R&D spending of 435311, which is -17.48x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 4.09M provide limited coverage of acquisition spending of (2.74M), which is -1.49x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 12.63M relative to inventory of 2.46M (5.14 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of (450095) show weak coverage of depreciation charges of 923108, with a -0.49 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Medical Devices
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ABT Abbott Laboratories 173.80 Bn 32.73 5.47 12.94 Bn
2 SYK Stryker Corp 141.15 Bn 43.48 5.62 15.86 Bn
3 MDT Medtronic plc 123.47 Bn 25.92 3.55 29.10 Bn
4 BSX Boston Scientific Corp 112.80 Bn 38.92 5.62 11.44 Bn
5 EW Edwards Lifesciences Corp 45.66 Bn 33.38 7.76 0.70 Bn
6 DXCM Dexcom Inc 27.52 Bn 32.91 5.90 1.34 Bn
7 STE STERIS plc 24.13 Bn 34.08 4.14 2.05 Bn
8 PODD Insulet Corp 17.33 Bn 70.38 6.87 1.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.33 2.13
EV to Cash from Ops. EV/CFO 1.75 2.75
EV to Debt EV to Debt 1.70 17.25
EV to EBIT EV/EBIT -24.25 2.89
EV to EBITDA EV/EBITDA -6.94 4.53
EV to Free Cash Flow [EV/FCF] EV/FCF 2.03 29.36
EV to Market Cap EV to Market Cap 2,731.46 25.09
EV to Revenue EV/Rev 1.11 32.80
Price to Book Value [P/B] P/B 0.00 4.73
Price to Earnings [P/E] P/E 0.00 -2.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 40.22
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 1.59
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 -0.37
Interest Coverage Interest Coverage -0.89 196.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 90.48 -152.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -37.65 8,476.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.44
EBIAT Growth (1y) % EBIAT Growth (1y) % 82.86 -792.16
EBITDA Growth (1y) % EBITDA Growth (1y) % 40.30 3.79
EBIT Growth (1y) % EBIT Growth (1y) % 85.29 -301.80
EBT Growth (1y) % EBT Growth (1y) % 73.64 -121.44
EPS Growth (1y) % EPS Growth (1y) % 85.19 -87.51
FCF Growth (1y) % FCF Growth (1y) % 147.83 10.43
Gross Profit Growth (1y) % Gross Profit Growth (1y) % -18.25 38.21
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.30 0.55
Cash Payout Ratio Cash Payout Ratio 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.34 1.80
Current Ratio Curr Ratio (Qtr) 1.71 4.18
Debt to Equity Ratio Debt/Equity (Qtr) 0.35 1.20
Interest Cover Ratio Interest Cover Ratio -0.89 196.93
Times Interest Earned Times Interest Earned -0.89 196.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 4.80 -2,396.63
EBIT Margin % EBIT Margin % -4.57 -2,478.60
EBT Margin % EBT Margin % -9.68 -2,690.42
Gross Margin % Gross Margin % 23.80 30.80
Net Profit Margin % Net Profit Margin % -10.90 -2,821.53