Airwa Inc. (NASDAQ: YYAI)

Sector: Consumer Cyclical Industry: Leisure CIK: 0001674440
Market Cap -3.38 Mn
P/B -0.02
P/E -0.69
P/S -0.28
ROIC (Qtr) 1.26
Div Yield % 0.00
Rev 1y % (Qtr) -8.33
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Connexa Sports Technologies Inc., also known as YYAI, operates in the sports technology industry. The company's primary focus is the development and marketing of products and services that cater to the sports sector. In recent years, Connexa Sports Technologies Inc. has experienced significant transformations, including a change of name from Lazex Inc. in 2019 and the acquisition of Slinger Bag Americas Inc. in 2020. The company's main business activities revolve around the creation and marketing of sports technology products and services. Connexa...

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Investment thesis

Bull case

  • Tangible assets of 163.11M provide robust 27.41x coverage of other current liabilities 5.95M, indicating strong asset backing.
  • Cash reserves of 130.82M provide robust 19.39x coverage of current liabilities 6.75M, indicating strong short-term solvency.
  • Strong cash position of 130.82M provides 21.99x coverage of other current liabilities 5.95M, indicating excellent liquidity.
  • Cash position of 130.82M represents healthy 0.84x of working capital 156.36M, demonstrating strong operational liquidity.
  • Cash reserves of 130.82M provide comfortable 34.34x coverage of tax obligations 3.81M, showing strong fiscal management.

Bear case

  • The company's operating cash flow of (32.27M) shows concerning coverage of stock compensation expenses of 62500, with a -516.35 ratio indicating potential earnings quality issues.
  • Operating cash flow of (32.27M) provides minimal -19.43x coverage of tax expenses of 1.66M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 6.57M show weak coverage of depreciation charges of 4.47M, with a 1.47 ratio indicating high capital intensity and potential reinvestment needs.
  • High financing cash flow of 173.34M relative to working capital of 156.36M, which is 1.11x suggests concerning dependence on external funding for operational needs.
  • Operating cash flow of (32.27M) is outpaced by equity issuance of 173.18M (-0.19 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Leisure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AS Amer Sports, Inc. 22.38 Bn 71.89 3.67 1.87 Bn
2 HAS Hasbro, Inc. 13.30 Bn 46.47 3.26 3.32 Bn
3 PLNT Planet Fitness, Inc. 7.78 Bn 37.79 6.04 2.58 Bn
4 GOLF Acushnet Holdings Corp. 7.40 Bn 80.24 4.75 0.90 Bn
5 LTH Life Time Group Holdings, Inc. 6.29 Bn 21.85 2.16 4.13 Bn
6 MAT Mattel Inc /De/ 5.43 Bn 12.57 1.04 2.59 Bn
7 YETI YETI Holdings, Inc. 3.97 Bn 24.75 2.17 0.22 Bn
8 MSGE Madison Square Garden Entertainment Corp. 2.95 Bn 56.80 2.91 1.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.02 1.19
EV to Cash from Ops. EV/CFO 0.11 -6.09
EV to Debt EV to Debt 0.00 14.49
EV to EBIT EV/EBIT -0.52 -159.90
EV to EBITDA EV/EBITDA -0.44 -4.06
EV to Free Cash Flow [EV/FCF] EV/FCF 0.11 0.74
EV to Market Cap EV to Market Cap 1.02 -0.64
EV to Revenue EV/Rev -0.28 4.65
Price to Book Value [P/B] P/B -0.02 4.75
Price to Earnings [P/E] P/E -0.69 12.00
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.51
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.11
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.13
Interest Coverage Int. cover (Qtr) 0.00 -30.68
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -13.50
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 7,862.53 1,190.33
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 13.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -25.06 -111.75
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -25.54 -165.31
EBIT Growth (1y) % EBIT 1y % (Qtr) -23.25 -1,562.20
EBT Growth (1y) % EBT 1y % (Qtr) -23.25 -1,555.34
EPS Growth (1y) % EPS 1y % (Qtr) 54.18 -377.44
FCF Growth (1y) % FCF 1y % (Qtr) -3,828.46 10.93
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.63 17.65
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.07 0.73
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 19.39 3.31
Current Ratio Curr Ratio (Qtr) 24.18 4.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 2.35
Interest Cover Ratio Int Coverage (Qtr) 0.00 -30.68
Times Interest Earned Times Interest Earned (Qtr) 0.00 -30.68
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 89.90 -57.55
EBIT Margin % EBIT Margin % (Qtr) 53.53 -65.38
EBT Margin % EBT Margin % (Qtr) 53.53 -69.55
Gross Margin % Gross Margin % (Qtr) 75.70 46.51
Net Profit Margin % Net Margin % (Qtr) 40.00 -74.45