Wrap Technologies, Inc. (NASDAQ: WRAP)

Sector: Technology Industry: Scientific & Technical Instruments CIK: 0001702924
Market Cap 107.98 Mn
P/B 7.64
P/E -7.35
P/S 26.13
ROIC (Qtr) -93.17
Div Yield % 0.00
Rev 1y % (Qtr) 151.43
Total Debt (Qtr) 2.49 Mn
Debt/Equity (Qtr) 0.18

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 5.96M provide 19.56x coverage of short-term debt 305000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 16.09M provides 6.46x coverage of total debt 2.49M, indicating robust asset backing and low credit risk.
  • Tangible assets of 16.09M provide exceptional 40.23x coverage of deferred revenue 400000, showing strong service capability backing.
  • Operating cash flow of (8.83M) fully covers other non-current liabilities (382000) by 23.12x, showing strong long-term stability.
  • Strong free cash flow of (8.92M) provides 446.10x coverage of acquisition spending (20000), indicating disciplined M&A strategy.

Bear case

  • Investment activities of (300000) provide weak support for R&D spending of 1.09M, which is -0.27x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 5.96M provide limited coverage of acquisition spending of (20000), which is -298.25x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (8.83M) provides insufficient coverage of deferred revenue obligations of 400000, which is -22.07x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (8.83M) shows concerning coverage of stock compensation expenses of 3.69M, with a -2.39 ratio indicating potential earnings quality issues.
  • Free cash flow of (8.92M) provides weak coverage of capital expenditures of 92000, with a -96.98 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Scientific & Technical Instruments
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GRMN Garmin Ltd 38.77 Bn 24.68 5.58 0.16 Bn
2 KEYS Keysight Technologies, Inc. 34.91 Bn 41.07 6.49 2.78 Bn
3 COHR Coherent Corp. 28.91 Bn 244.51 4.78 3.51 Bn
4 TDY Teledyne Technologies Inc 23.87 Bn 29.19 3.98 2.53 Bn
5 TRMB Trimble Inc. 19.54 Bn 54.65 5.43 1.39 Bn
6 FTV Fortive Corp 18.68 Bn 31.02 3.31 3.31 Bn
7 MKSI Mks Inc 10.78 Bn 38.63 2.81 4.55 Bn
8 CGNX Cognex Corp 6.14 Bn 55.76 6.32 0.08 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 5.80 2.20
EV to Cash from Ops. EV/CFO -11.99 9.84
EV to Debt EV to Debt 42.49 22.70
EV to EBIT EV/EBIT -7.57 15.74
EV to EBITDA EV/EBITDA -7.70 11.58
EV to Free Cash Flow [EV/FCF] EV/FCF -11.86 24.79
EV to Market Cap EV to Market Cap 0.98 -2.78
EV to Revenue EV/Rev 25.61 6.45
Price to Book Value [P/B] P/B 7.64 7.12
Price to Earnings [P/E] P/E -7.35 13.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -21.18 -16.40
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -7.19
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.83
Interest Coverage Int. cover (Qtr) 0.00 -13.61
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 16.36 -21.70
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 22.56 101.63
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.97
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 16.13 19.84
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 16.53 17.31
EBIT Growth (1y) % EBIT 1y % (Qtr) 16.13 20.90
EBT Growth (1y) % EBT 1y % (Qtr) 16.13 82.68
EPS Growth (1y) % EPS 1y % (Qtr) 24.39 65.55
FCF Growth (1y) % FCF 1y % (Qtr) 17.50 32.88
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 34.64 34.27
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.23 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 3.13 2.99
Current Ratio Curr Ratio (Qtr) 7.12 4.83
Debt to Equity Ratio Debt/Equity (Qtr) 0.18 0.67
Interest Cover Ratio Int Coverage (Qtr) 0.00 -13.61
Times Interest Earned Times Interest Earned (Qtr) 0.00 -13.61
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -328.00 -296.15
EBIT Margin % EBIT Margin % (Qtr) -338.45 -316.09
EBT Margin % EBT Margin % (Qtr) -338.45 -351.37
Gross Margin % Gross Margin % (Qtr) 57.50 40.05
Net Profit Margin % Net Margin % (Qtr) -355.20 -354.10