Wing Yip Food Holdings Group Ltd (NASDAQ: WYHG)

Sector: Consumer Defensive Industry: Packaged Foods CIK: 0001999860
Market Cap 23.21 Mn
P/B 0.14
P/E 4.67
P/S 0.16
ROIC (Qtr) -3.10
Div Yield % 0.00
Rev 1y % (Qtr) -13.33
Total Debt (Qtr) 29.08 Mn
Debt/Equity (Qtr) 0.18
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About

Investment thesis

Bull case

  • Healthy cash reserves of 114.68M provide 4.98x coverage of short-term debt 23.01M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 207.81M provides 7.15x coverage of total debt 29.08M, indicating robust asset backing and low credit risk.
  • Tangible assets of 207.81M provide exceptional 5917.55x coverage of deferred revenue 35117, showing strong service capability backing.
  • Operating cash flow of 7.02M provides strong 199.96x coverage of deferred revenue 35117, indicating service delivery capability.
  • Retained earnings of 114.71M provide full 18.89x coverage of long-term debt 6.07M, indicating strong internal capital position.

Bear case

  • Operating cash flow of 7.02M barely covers its investment activities of (10.09M), with a coverage ratio of -0.70, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (10.09M) provide weak support for R&D spending of 5.09M, which is -1.98x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of (3.07M) provides weak coverage of capital expenditures of 10.09M, with a -0.30 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 6.81M show weak coverage of depreciation charges of 4.71M, with a 1.45 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (3.07M) represents just -0.69x of debt issuance 4.48M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Packaged Foods
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KHC Kraft Heinz Co 28.20 Bn -4.82 1.13 21.22 Bn
2 GIS General Mills Inc 26.99 Bn 20.72 1.54 13.73 Bn
3 JBS Jbs N.V. 17.81 Bn 10.08 0.23 23.92 Bn
4 MKC Mccormick & Co Inc 16.10 Bn 44.21 3.77 4.00 Bn
5 HRL Hormel Foods Corp /De/ 12.37 Bn 18.03 1.34 2.86 Bn
6 SJM J M SMUCKER Co 11.08 Bn 19.60 1.97 7.91 Bn
7 PPC Pilgrims Pride Corp 10.32 Bn 9.54 0.56 3.29 Bn
8 MICC Magnum Ice Cream Co N.V. 9.71 Bn 28.17 1.04 4.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.28 1.47
EV to Cash from Ops. EV/CFO -8.44 29.75
EV to Debt EV to Debt -2.04 27.85
EV to EBIT EV/EBIT -8.70 86.88
EV to EBITDA EV/EBITDA -4.08 -156.20
EV to Free Cash Flow [EV/FCF] EV/FCF 19.31 -5.67
EV to Market Cap EV to Market Cap -2.55 1.15
EV to Revenue EV/Rev -0.42 7.32
Price to Book Value [P/B] P/B 0.14 8.48
Price to Earnings [P/E] P/E 4.67 14.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 4.58
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.76
Dividend per Basic Share Div per Share (Qtr) 0.00 0.65
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 22.76
Interest Coverage Int. cover (Qtr) 6.36 6.64
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -4,396.73 -118.07
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 2.69 43.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.66
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -62.94 -48.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -20.10 -152.35
EBIT Growth (1y) % EBIT 1y % (Qtr) -56.67 -50.79
EBT Growth (1y) % EBT 1y % (Qtr) -60.77 -54.94
EPS Growth (1y) % EPS 1y % (Qtr) -70.97 -28.10
FCF Growth (1y) % FCF 1y % (Qtr) -115.35 7.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -12.13 439.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.68 1.01
Cash Payout Ratio Cash Payout Ratio 0.00 0.12
Cash Ratio Cash Ratio (Qtr) 3.26 0.86
Current Ratio Curr Ratio (Qtr) 3.75 2.60
Debt to Equity Ratio Debt/Equity (Qtr) 0.18 2.21
Interest Cover Ratio Int Coverage (Qtr) 6.36 6.64
Times Interest Earned Times Interest Earned (Qtr) 6.36 6.64
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.20 -919.13
EBIT Margin % EBIT Margin % (Qtr) 4.83 -1,474.87
EBT Margin % EBT Margin % (Qtr) 4.07 -1,537.76
Gross Margin % Gross Margin % (Qtr) 28.60 26.98
Net Profit Margin % Net Margin % (Qtr) 3.50 -1,538.60