zSpace, Inc. (NASDAQ: ZSPC)

Sector: Technology Industry: Computer Hardware CIK: 0001637147
Market Cap 75,568.48
P/B 0.00
P/E 0.00
P/S 0.00
ROIC (Qtr) 746.38
Div Yield % 0.00
Rev 1y % (Qtr) -38.16
Total Debt (Qtr) 18.67 Mn
Debt/Equity (Qtr) -0.95

About

Price action

Investment thesis

Bull case

  • Operating cash flow of (19.05M) fully covers other non-current liabilities (495000) by 38.48x, showing strong long-term stability.
  • Retained earnings of (308.50M) represent substantial 15.67x of equity (19.68M), indicating strong internal capital generation.
  • Cash position of 4.27M provides exceptional 68.89x coverage of minority interest expenses 62000, indicating strong liquidity.
  • Cash reserves of 4.27M exceed inventory value of 2.35M by 1.82x, indicating strong liquidity and inventory management.
  • R&D investment of 4.74M represents healthy 1.58x of deferred revenue 3M, indicating strong future innovation pipeline.

Bear case

  • Investment activities of (26000) provide weak support for R&D spending of 4.74M, which is -0.01x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (19.05M) provides insufficient coverage of deferred revenue obligations of 3M, which is -6.35x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (19.05M) shows concerning coverage of stock compensation expenses of 5.92M, with a -3.22 ratio indicating potential earnings quality issues.
  • Free cash flow of (19.07M) provides weak coverage of capital expenditures of 26000, with a -733.65 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (19.05M) provides minimal -1587.42x coverage of tax expenses of 12000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Computer Hardware
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ANET Arista Networks, Inc. 164.72 Bn 49.07 19.50 0.00 Bn
2 DELL Dell Technologies Inc. 86.37 Bn 16.20 0.83 31.24 Bn
3 WDC Western Digital Corp 60.34 Bn 23.73 5.03 4.68 Bn
4 STX Seagate Technology Holdings plc 58.67 Bn 34.25 6.14 4.99 Bn
5 SNDK Sandisk Corp 34.41 Bn -19.78 4.42 1.35 Bn
6 PSTG Pure Storage, Inc. 21.84 Bn 167.52 6.27 0.23 Bn
7 HPQ Hp Inc 21.10 Bn 8.34 0.38 9.67 Bn
8 SMCI Super Micro Computer, Inc. 17.45 Bn 22.01 0.83 4.78 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.25 2.06
EV to Cash from Ops. EV/CFO -0.88 -0.65
EV to Debt EV to Debt 0.90 56.37
EV to EBIT EV/EBIT -0.84 2.89
EV to EBITDA EV/EBITDA -0.87 -1.74
EV to Free Cash Flow [EV/FCF] EV/FCF -0.88 -7.44
EV to Market Cap EV to Market Cap 222.72 7.64
EV to Revenue EV/Rev 0.53 78.30
Price to Book Value [P/B] P/B 0.00 -28.73
Price to Earnings [P/E] P/E 0.00 6.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.25
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 12.30
Dividend per Basic Share Div per Share (Qtr) 0.00 0.27
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.93
Interest Coverage Int. cover (Qtr) -11.89 -105.42
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -100.00 -11.38
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 33.30 867.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.71
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -180.44 -189.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -14.61 -40.76
EBIT Growth (1y) % EBIT 1y % (Qtr) -180.25 -117.00
EBT Growth (1y) % EBT 1y % (Qtr) -198.84 -116.68
EPS Growth (1y) % EPS 1y % (Qtr) -219.75 -70.06
FCF Growth (1y) % FCF 1y % (Qtr) -268.67 712.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -11.85 34.90
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 2.34 0.80
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 0.22 7.26
Current Ratio Curr Ratio (Qtr) 0.68 13.59
Debt to Equity Ratio Debt/Equity (Qtr) -0.95 -3.57
Interest Cover Ratio Int Coverage (Qtr) -11.89 -105.42
Times Interest Earned Times Interest Earned (Qtr) -11.89 -105.42
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -63.70 -629.92
EBIT Margin % EBIT Margin % (Qtr) -63.68 -683.67
EBT Margin % EBT Margin % (Qtr) -69.04 -687.58
Gross Margin % Gross Margin % (Qtr) 45.50 34.79
Net Profit Margin % Net Margin % (Qtr) -69.10 -692.43