YSX Tech Co., Ltd (NASDAQ: YSXT)

Sector: Industrials Industry: Specialty Business Services CIK: 0001993463
Market Cap 27.45 Mn
P/B 0.89
P/E 5.75
P/S 0.35
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 7.37 Mn
Debt/Equity (Qtr) 0.24
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About

Investment thesis

Bull case

  • Strong tangible asset base of 47.79M provides 6.49x coverage of total debt 7.37M, indicating robust asset backing and low credit risk.
  • Tangible assets of 47.79M provide exceptional 31381.47x coverage of deferred revenue 1523, showing strong service capability backing.
  • Operating cash flow of (13.51M) fully covers other non-current liabilities (1523) by 8873.08x, showing strong long-term stability.
  • Retained earnings of 20.02M provide full 8.37x coverage of long-term debt 2.39M, indicating strong internal capital position.
  • Tangible assets of 47.79M provide robust 8.32x coverage of other current liabilities 5.74M, indicating strong asset backing.

Bear case

  • Operating cash flow of (13.51M) barely covers its investment activities of 255251, with a coverage ratio of -52.94, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 255251 provide weak support for R&D spending of 245739, which is 1.04x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (13.51M) provides insufficient coverage of deferred revenue obligations of 1523, which is -8873.08x, raising concerns about future service delivery capabilities.
  • Free cash flow of (13.68M) provides weak coverage of capital expenditures of 166458, with a -82.18 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (13.51M) provides minimal -18.04x coverage of tax expenses of 749062, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Specialty Business Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CTAS Cintas Corp 120.08 Bn 556.91 33.85 3.24 Bn
2 RELX Relx Plc 56.19 Bn 20.01 4.34 9.82 Bn
3 TRI Thomson Reuters Corp /Can/ 37.42 Bn 24.91 5.00 2.44 Bn
4 CPRT Copart Inc 36.25 Bn 22.74 7.79 0.10 Bn
5 RBA Rb Global Inc. 19.20 Bn 49.09 4.24 4.21 Bn
6 ULS UL Solutions Inc. 14.12 Bn 43.32 4.92 0.74 Bn
7 GPN Global Payments Inc 11.52 Bn 284.78 8.66 16.20 Bn
8 ARMK Aramark 10.37 Bn 32.72 0.55 6.57 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.55 2.48
EV to Cash from Ops. EV/CFO -1.96 30.22
EV to Debt EV to Debt 3.60 31.08
EV to EBIT EV/EBIT 4.62 94.66
EV to EBITDA EV/EBITDA 4.84 18.37
EV to Free Cash Flow [EV/FCF] EV/FCF -1.94 -20.73
EV to Market Cap EV to Market Cap 0.97 178.66
EV to Revenue EV/Rev 0.34 8.12
Price to Book Value [P/B] P/B 0.89 5.37
Price to Earnings [P/E] P/E 5.75 65.19
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -15,800.59
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 10.14
Dividend per Basic Share Div per Share (Qtr) 0.00 0.35
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 7.65
Interest Coverage Interest Coverage 27.17 30.46
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % -7,102.86 -178.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -94.14 155.14
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.38
EBIAT Growth (1y) % EBIAT Growth (1y) % 19.24 -34.92
EBITDA Growth (1y) % EBITDA Growth (1y) % 17.88 -86.28
EBIT Growth (1y) % EBIT Growth (1y) % 23.05 -22.62
EBT Growth (1y) % EBT Growth (1y) % 22.52 -287.35
EPS Growth (1y) % EPS Growth (1y) % 5.26 -118.47
FCF Growth (1y) % FCF Growth (1y) % -685.15 -146.43
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 8.11 2.63
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 1.64 0.84
Cash Payout Ratio Cash Payout Ratio 0.00 -0.03
Cash Ratio Cash Ratio (Qtr) 0.02 1.15
Current Ratio Curr Ratio (Qtr) 3.23 4.12
Debt to Equity Ratio Debt/Equity (Qtr) 0.24 0.92
Interest Cover Ratio Interest Cover Ratio 27.17 30.46
Times Interest Earned Times Interest Earned 27.17 30.46
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 7.50 -33.89
EBIT Margin % EBIT Margin % 7.32 -43.32
EBT Margin % EBT Margin % 7.05 -44.88
Gross Margin % Gross Margin % 9.90 39.81
Net Profit Margin % Net Profit Margin % 6.10 -41.60