Yunhong Green Cti Ltd. (NASDAQ: YHGJ)

Sector: Consumer Cyclical Industry: Packaging & Containers CIK: 0001042187
Market Cap 8.10 Mn
P/B 0.77
P/E -8.97
P/S 0.42
ROIC (Qtr) -1.19
Div Yield % 0.00
Rev 1y % (Qtr) 16.26
Total Debt (Qtr) 9.06 Mn
Debt/Equity (Qtr) 0.86
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About

Investment thesis

Bull case

  • Tangible assets of 22.17M provide robust 26.97x coverage of other current liabilities 822000, indicating strong asset backing.
  • Robust tangible asset base of 22.17M provides 5.99x coverage of working capital 3.70M, indicating strong operational backing.
  • Tangible assets of 22.17M provide robust 2.69x coverage of current liabilities 8.24M, showing strong asset backing.
  • Tangible assets of 22.17M provide robust 8.24x coverage of receivables 2.69M, showing strong asset quality.

Bear case

  • Operating cash flow of 164000 barely covers its investment activities of (97000), with a coverage ratio of -1.69, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 387000 against inventory of 8.68M, the 0.04 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • The company's operating cash flow of 164000 shows concerning coverage of stock compensation expenses of 45000, with a 3.64 ratio indicating potential earnings quality issues.
  • Operating earnings of 140000 show weak coverage of depreciation charges of 642000, with a 0.22 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 642000 relative to operating cash flow of 164000, which is 3.91x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the Packaging & Containers
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SW Smurfit Westrock plc 25.68 Bn 34.34 0.82 14.11 Bn
2 BALL BALL Corp 24.44 Bn 53.45 3.32 7.21 Bn
3 PKG Packaging Corp Of America 23.43 Bn 162.41 8.65 4.36 Bn
4 AMCR Amcor plc 22.55 Bn 37.83 1.15 16.02 Bn
5 IP International Paper Co /New/ 21.35 Bn 25.41 0.79 12.54 Bn
6 AVY Avery Dennison Corp 17.24 Bn 50.23 2.79 3.78 Bn
7 CCK Crown Holdings, Inc. 14.99 Bn 31.43 1.77 6.60 Bn
8 SEE Sealed Air Corp/De 6.70 Bn 27.06 1.55 4.27 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.79 1.10
EV to Cash from Ops. EV/CFO 106.43 25.51
EV to Debt EV to Debt 1.93 2.87
EV to EBIT EV/EBIT 124.67 21.92
EV to EBITDA EV/EBITDA 43.42 15.97
EV to Free Cash Flow [EV/FCF] EV/FCF 260.51 29.94
EV to Market Cap EV to Market Cap 2.16 1.76
EV to Revenue EV/Rev 0.90 2.08
Price to Book Value [P/B] P/B 0.77 4.77
Price to Earnings [P/E] P/E -8.97 33.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -5.19 1.61
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -152.30
Dividend per Basic Share Div per Share (Qtr) 0.00 1.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -11.16
Interest Coverage Int. cover (Qtr) 0.16 -4.81
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 74.94 -4.03
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 7,640.00 347.51
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 21.24
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 116.75 20.83
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 172.04 23.56
EBIT Growth (1y) % EBIT 1y % (Qtr) 116.75 -33.97
EBT Growth (1y) % EBT 1y % (Qtr) 57.07 -493.51
EPS Growth (1y) % EPS 1y % (Qtr) 53.73 36.84
FCF Growth (1y) % FCF 1y % (Qtr) 121.97 -3.88
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 24.65 14.38
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.87 0.71
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.20
Cash Ratio Cash Ratio (Qtr) 0.05 0.26
Current Ratio Curr Ratio (Qtr) 1.45 1.51
Debt to Equity Ratio Debt/Equity (Qtr) 0.86 0.90
Interest Cover Ratio Int Coverage (Qtr) 0.16 -4.81
Times Interest Earned Times Interest Earned (Qtr) 0.16 -4.81
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.00 2.80
EBIT Margin % EBIT Margin % (Qtr) 0.72 -2.91
EBT Margin % EBT Margin % (Qtr) -3.76 -5.68
Gross Margin % Gross Margin % (Qtr) 20.40 21.11
Net Profit Margin % Net Margin % (Qtr) -4.70 -6.77