Company Overview
Chanson International Holding operates within the consumer cyclical sector, specifically focusing on the restaurants industry where it manufactures and distributes a diverse range of bakery, seasonal, and beverage products. These offerings are supplied to both individual consumers and corporate clients across the People's Republic of China, the Cayman Islands, and the United States, with the product portfolio including packaged bakery items such as cakes and bread. The company maintains a substantial operational footprint employing 405 individuals to support its manufacturing and sales activities. With a total market capitalization of $108.36M and trailing twelve-month revenue of $19.37M, the firm represents a mid-sized entity within its niche, indicating a specific position in the market that balances niche product focus with significant regional distribution reach.
Financial Health
The company reported trailing twelve-month revenue of $19.37M, yet recorded a net income of $-315,920 and an EBITDA of $-387,727, revealing a substantial gap between top-line generation and bottom-line profitability driven by high operational costs or one-time charges. Despite the reported net loss and negative EBITDA, the company generated positive free cash flow of $5.63M, which suggests a degree of financial flexibility allowing for capital expenditure or debt servicing despite accounting losses. The gross margin stands at 40.9%, indicating that the company retains a significant portion of revenue after direct costs of goods sold, while the operating margin of -13.7% and profit margin of -1.6% highlight significant overhead pressures and the impact of those same charges on overall profitability. On the balance sheet, Chanson International Holding holds $22.09M in cash against $16.24M in debt, resulting in a debt-to-equity ratio of 66.17, which implies a leveraged capital structure where liabilities are substantial relative to shareholder equity. The current ratio is 2.00, indicating that the company possesses ample short-term assets to cover its short-term liabilities, suggesting healthy immediate liquidity. Additionally, the return on equity is -1.7% and the return on assets is -1.6%, metrics that reveal that management has not yet generated positive returns on the capital invested, reflecting the current unprofitable state of the business operations.
Valuation Assessment
The trailing P/E ratio is 2.84, while the forward P/E is listed as N/A, implying that the market is unable to assign a multiple based on expected future earnings due to the lack of projected profitability in the near term. The price-to-book ratio is 0.07, which indicates that the company's stock trades at a significant discount to its book value, suggesting the market prices the firm below the liquidation value of its assets or expects substantial future write-downs. Alternative valuation metrics show a price-to-sales ratio of 5.59 and an EV/EBITDA of 10.48, figures that suggest the market is valuing the company primarily on its sales volume and cash generation potential rather than current earnings power. The stock's 52-week high is $70.40 and the 52-week low is $1.50, placing the current trading price at a level that is $69.90 below the 52-week high and $0.40 above the 52-week low, highlighting extreme volatility over the past year. The beta is -2.50, a negative value that signifies the stock's price moves inversely to the broader market, creating a unique volatility profile distinct from standard equities where price usually correlates positively with market movements.
Growth & Income
The company achieved a revenue growth rate of 15.2% year over year, whereas earnings growth is N/A due to the reported net loss, indicating that top-line expansion is occurring without a corresponding improvement in bottom-line profitability. As a non-dividend payer, the company does not distribute a dividend yield or maintain a payout ratio, meaning it retains all earnings to reinvest into growth initiatives rather than distributing cash to shareholders. The absence of a dividend payout ratio of 0.0% confirms that the company reinvests its resources into operations to address the negative earnings and improve the return on equity in future periods. Overall, the growth and income profile is characterized by strong sales expansion that has not yet translated into profitability, with no current income generation via dividends available to investors.