ATIF Holdings Ltd (NASDAQ: ZBAI)

Sector: Financial Services Industry: Capital Markets CIK: 0001755058
Market Cap 6.74 Mn
P/B 0.70
P/E -1.47
P/S 0.00
ROIC (Qtr) -21.99
Div Yield % 0.00
Rev 1y % (Qtr) -28.57
Total Debt (Qtr) 250,000.00
Debt/Equity (Qtr) 0.03

About

ATIF Holdings Ltd, also known as ATIF, is a company based in the British Virgin Islands that operates within the financial consulting services industry. The company primarily focuses on providing comprehensive going public consulting services to small and medium-sized enterprises (SMEs), enabling them to become public companies on suitable stock markets and exchanges. ATIF Holdings Ltd operates in a dynamic industry that involves several consulting companies offering going public consulting services. The company's competitive advantage lies in...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 8.95M provide 35.80x coverage of short-term debt 250000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 10.44M provides 41.76x coverage of total debt 250000, indicating robust asset backing and low credit risk.
  • Tangible assets of 10.44M provide robust 522.36x coverage of other current liabilities 19985, indicating strong asset backing.
  • Short-term investments of 116557 provide solid 5.83x coverage of other current liabilities 19985, indicating strong liquidity.
  • Cash reserves of 8.95M provide ample 9.95x coverage of acquisition spending 900000, enabling strategic growth opportunities.

Bear case

  • Operating cash flow of (2.46M) barely covers its investment activities of 1.26M, with a coverage ratio of -1.95, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating earnings of (4.60M) show weak coverage of depreciation charges of 15282, with a -300.88 ratio indicating high capital intensity and potential reinvestment needs.
  • High financing cash flow of 8.90M relative to working capital of 9.66M, which is 0.92x suggests concerning dependence on external funding for operational needs.
  • Operating cash flow of (2.46M) is outpaced by equity issuance of 8.90M (-0.28 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tangible assets of 10.44M provide limited backing for working capital of 9.66M, which is 1.08x, suggesting increased operational risk in market downturns.

Peer comparison

Companies in the Capital Markets
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GS Goldman Sachs Group Inc 284.23 Bn 17.94 4.84 911.32 Bn
2 MS Morgan Stanley 279.63 Bn 17.97 4.05 353.12 Bn
3 SCHW Schwab Charles Corp 179.33 Bn 23.09 7.83 27.59 Bn
4 HOOD Robinhood Markets, Inc. 106.92 Bn 48.73 25.43 0.00 Bn
5 CRCL Circle Internet Group, Inc. 40.97 Bn 261.00 24.22 0.15 Bn
6 IBKR Interactive Brokers Group, Inc. 28.23 Bn 30.79 4.75 28.43 Bn
7 LPLA LPL Financial Holdings Inc. 27.60 Bn 33.13 1.77 7.52 Bn
8 FUTU Futu Holdings Ltd 22.89 Bn 18.13 8.54 1.75 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.03 1.07
EV to Cash from Ops. EV/CFO -0.13 15.33
EV to Debt EV to Debt 1.25 21.89
EV to EBIT EV/EBIT -0.07 -0.80
EV to EBITDA EV/EBITDA -0.15 11.20
EV to Free Cash Flow [EV/FCF] EV/FCF -0.13 43.08
EV to Market Cap EV to Market Cap 0.05 -0.05
EV to Revenue EV/Rev 0.00 12.82
Price to Book Value [P/B] P/B 0.70 3.09
Price to Earnings [P/E] P/E -1.47 6.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 4.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 10.37
Dividend per Basic Share Div per Share (Qtr) 0.00 0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -8.68
Interest Coverage Int. cover (Qtr) 0.00 37.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -12,429.64
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 614.70 1,588.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -44.07 270.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 7.64 333.57
EBIT Growth (1y) % EBIT 1y % (Qtr) -44.22 3,103.22
EBT Growth (1y) % EBT 1y % (Qtr) -44.22 3,039.53
EPS Growth (1y) % EPS 1y % (Qtr) 0.71 24.25
FCF Growth (1y) % FCF 1y % (Qtr) -1,857.01 -80.08
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 51.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.08
Cash Ratio Cash Ratio (Qtr) 11.54 2.01
Current Ratio Curr Ratio (Qtr) 13.45 3.47
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 1.46
Interest Cover Ratio Int Coverage (Qtr) 0.00 37.53
Times Interest Earned Times Interest Earned (Qtr) 0.00 37.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 76.68
EBIT Margin % EBIT Margin % (Qtr) 0.00 46.81
EBT Margin % EBT Margin % (Qtr) 0.00 58.57
Gross Margin % Gross Margin % (Qtr) 0.00 53.60
Net Profit Margin % Net Margin % (Qtr) 0.00 29.41