Full Truck Alliance Co. Ltd. (NYSE: YMM)

Sector: Technology Industry: Software - Application CIK: 0001838413
Market Cap 10.96 Bn
P/B 1.99
P/E 19.62
P/S 6.26
ROIC (Qtr) 55.27
Div Yield % 0.00
Rev 1y % (Qtr) 10.78
Total Debt (Qtr) 6.31 Mn
Debt/Equity (Qtr) 0.00

About

Full Truck Alliance Co. Ltd., also known as YMM, is a prominent player in the logistics and transportation industry of China. The company operates as a digital freight platform, facilitating shipments across a wide range of distance ranges, cargo weights, and types. YMM was established in December 2017, following the merger of Full Truck Logistics Information Co. Ltd. and Truck Alliance Inc., two pioneering digital freight platforms founded in 2013 and 2011 respectively. The company's primary business activities encompass the provision of freight...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 816.15M provide 135.15x coverage of short-term debt 6.04M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 5.53B provides 876.73x coverage of total debt 6.31M, indicating robust asset backing and low credit risk.
  • Long-term investments of 2.33B provide solid 8507.44x coverage of long-term debt 274016.85, indicating strategic financial planning.
  • Cash position of 816.15M provides exceptional 95.86x coverage of minority interest expenses 8.51M, indicating strong liquidity.
  • Short-term investments of 2.07B provide solid 4.36x coverage of other current liabilities 474.55M, indicating strong liquidity.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 115.34M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Long-term investments of 2.33B represent a high 32.21x of fixed assets 72.37M, indicating potential overexposure to financial assets versus operational capabilities.
  • Tax assets of 36.33M provide limited offset against tax liabilities of 162.62M, which is 0.22x, indicating potential future cash flow pressure from tax obligations.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 99.18M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Retained earnings of (1.12B) provide limited buffer against comprehensive income items of 416.45M, which is -2.70x, indicating elevated exposure to market risks.

Timing of Transfer of Good or Service Breakdown of Revenue (2023)

Timing of Transfer of Good or Service Breakdown of Revenue (2023)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.12 2.65
EV to Cash from Ops. EV/CFO -1.80 13.37
EV to Debt EV to Debt -115.89 57.69
EV to EBIT EV/EBIT -1.11 19.12
EV to EBITDA EV/EBITDA -2.06 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF -1.84 14.69
EV to Market Cap EV to Market Cap -0.07 -92.28
EV to Revenue EV/Rev -0.42 4.60
Price to Book Value [P/B] P/B 1.99 4.26
Price to Earnings [P/E] P/E 19.62 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 2.52
Interest Coverage Int. cover (Qtr) 0.00 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 23.83 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 28.54 -263.15
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 42.31 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 42.31 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 35.71 123.84
FCF Growth (1y) % FCF Growth (1y) % 0.00 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 34.33 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.58
Cash Payout Ratio Cash Payout Ratio 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.67 3.75
Current Ratio Curr Ratio (Qtr) 6.26 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.17
Interest Cover Ratio Int Coverage (Qtr) 0.00 -52.32
Times Interest Earned Times Interest Earned (Qtr) 0.00 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -100.06
EBIT Margin % EBIT Margin % (Qtr) 267.46 -164.24
EBT Margin % EBT Margin % (Qtr) 37.57 -116.94
Gross Margin % Gross Margin % (Qtr) 60.40 58.20
Net Profit Margin % Net Margin % (Qtr) 31.90 -121.65