XCel Brands, Inc. (NASDAQ: XELB)

Sector: Consumer Cyclical Industry: Apparel Manufacturing CIK: 0001083220
Market Cap 5.26 Mn
P/B 0.28
P/E -0.24
P/S 1.06
ROIC (Qtr) -13.89
Div Yield % 0.00
Rev 1y % (Qtr) -41.53
Total Debt (Qtr) 18.30 Mn
Debt/Equity (Qtr) 0.98
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About

Investment thesis

Bull case

  • Operating cash flow of (6.61M) provides exceptional 39.79x coverage of minority interest expenses (166000), showing strong core operations.
  • Operating cash flow of (6.61M) fully covers other non-current liabilities (630000) by 10.48x, showing strong long-term stability.
  • Tangible assets of 8.35M provide robust 5.66x coverage of other current liabilities 1.48M, indicating strong asset backing.
  • Cash reserves of 1.49M provide comfortable 13.22x coverage of tax obligations 113000, showing strong fiscal management.
  • Operating cash flow of (6.61M) exceeds working capital of (3.90M) by 1.69x, showing strong operational efficiency.

Bear case

  • Operating cash flow of (6.61M) provides insufficient coverage of deferred revenue obligations of 3.36M, which is -1.96x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (6.61M) shows concerning coverage of stock compensation expenses of 453000, with a -14.58 ratio indicating potential earnings quality issues.
  • Free cash flow of (6.62M) provides weak coverage of capital expenditures of 10000, with a -661.50 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (6.61M) provides minimal -22.39x coverage of tax expenses of 295000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (17.56M) show weak coverage of depreciation charges of 3.60M, with a -4.88 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Apparel Manufacturing
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 RL Ralph Lauren Corp 22.69 Bn 24.70 2.90 2.84 Bn
2 GIL Gildan Activewear Inc. 10.96 Bn 23.07 3.26 1.87 Bn
3 LEVI Levi Strauss & Co 8.64 Bn 29.20 1.90 2.31 Bn
4 VFC V F Corp 7.87 Bn 35.25 0.82 5.34 Bn
5 PVH Pvh Corp. /De/ 5.72 Bn 11.04 0.70 4.26 Bn
6 COLM Columbia Sportswear Co 4.11 Bn 11.99 1.20 0.48 Bn
7 KTB Kontoor Brands, Inc. 3.73 Bn 15.16 1.43 1.50 Bn
8 UAA Under Armour, Inc. 3.29 Bn -6.33 0.66 1.69 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.56 1.04
EV to Cash from Ops. EV/CFO -3.44 18.51
EV to Debt EV to Debt 1.24 4.20
EV to EBIT EV/EBIT -1.29 10.20
EV to EBITDA EV/EBITDA -11.72 -91.52
EV to Free Cash Flow [EV/FCF] EV/FCF -3.43 -0.11
EV to Market Cap EV to Market Cap 4.31 1.68
EV to Revenue EV/Rev 4.56 1.29
Price to Book Value [P/B] P/B 0.28 2.51
Price to Earnings [P/E] P/E -0.24 31.58
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.20
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -16.14
Dividend per Basic Share Div per Share (Qtr) 0.00 0.52
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 21.00
Interest Coverage Int. cover (Qtr) -4.49 26.81
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 91.45 -46.79
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 517.36 12.42
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.54
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 16.27 -85.87
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 69.70 -23.74
EBIT Growth (1y) % EBIT 1y % (Qtr) 12.62 -37.10
EBT Growth (1y) % EBT 1y % (Qtr) -2.75 -171.50
EPS Growth (1y) % EPS 1y % (Qtr) 24.11 -215.11
FCF Growth (1y) % FCF 1y % (Qtr) 7.60 -23.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -42.71 7.74
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.12 1.16
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.38
Cash Ratio Cash Ratio (Qtr) 0.19 0.33
Current Ratio Curr Ratio (Qtr) 0.51 2.00
Debt to Equity Ratio Debt/Equity (Qtr) 0.98 -1.73
Interest Cover Ratio Int Coverage (Qtr) -4.49 26.81
Times Interest Earned Times Interest Earned (Qtr) -4.49 26.81
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -280.40 -6.42
EBIT Margin % EBIT Margin % (Qtr) -352.61 -10.35
EBT Margin % EBT Margin % (Qtr) -431.16 -16.99
Gross Margin % Gross Margin % (Qtr) 100.00 49.55
Net Profit Margin % Net Margin % (Qtr) -437.10 -18.77