Company Overview
TDH Holdings, Inc. engages in the commercial real estate management business within the United States, although the company is based in Beijing, the People's Republic of China, and was founded in 2002. The firm operates within the Consumer Cyclical sector, specifically the Restaurants industry, which categorizes its activities alongside businesses whose performance is sensitive to economic cycles and consumer spending patterns. The company currently employs 17 individuals and holds a market capitalization of $12.59M, with annual revenue reported at $1.05M over the trailing twelve months. These financial figures indicate a micro-cap status, suggesting the entity functions as a small-scale player with limited resources compared to larger peers in the commercial real estate or restaurant sectors. The disparity between its operational base in the US and its incorporation location in China highlights a specific corporate structure that may influence regulatory compliance and operational focus for this niche enterprise.
Financial Health
The company reports a revenue of $1.05M for the trailing twelve months while generating a net income of $1.73M and an EBITDA of $-1,203,563, revealing a distinct gap between top-line performance and bottom-line profitability driven by significant operating expenses. This negative EBITDA of $1.20M contrasts sharply with the positive net income, indicating that non-operating income or other comprehensive income sources are substantially offsetting the operating losses to produce the reported profit. The free cash flow stands at $2.11M, which provides a layer of financial flexibility that allows the company to manage liquidity needs despite the negative operating cash conversion suggested by the EBITDA figure. Gross margin is calculated at 34.3%, indicating that the company retains nearly one-third of its revenue after direct costs, whereas the operating margin is -97.6%, signaling that overhead and administrative costs are consuming almost all operating income before non-operating items. The profit margin reaches an anomalous 262.4%, a metric that reflects the impact of non-operating gains or other income exceeding total operating costs, creating a highly leveraged profit structure relative to revenue. On the balance sheet, the company holds $31.53M in cash against $3.45M in debt, resulting in a debt-to-equity ratio of 11.51, which suggests a highly leveraged capital structure where equity is minimal relative to the debt obligation. Despite the high leverage, the current ratio of 6.24 indicates strong short-term liquidity, as the company possesses more than six times the current assets required to cover its current liabilities. Return on Equity is 6.0% while Return on Assets is -2.5%, revealing that while shareholders see a positive return on their equity capital, the company as a whole is generating a negative return on the total asset base utilized for operations.
Valuation Assessment
The trailing P/E ratio is 7.18, while the forward P/E is listed as N/A, implying that analysts or the market currently lack consensus on future earnings growth sufficient to calculate a projected price-to-earnings multiple for the coming year. The price-to-book ratio is 0.42, indicating that the market values the company at less than half of its book value, which often suggests the market perceives significant intangible asset risks or potential undervaluation relative to tangible net worth. The price-to-sales ratio is 12.04 and the EV/EBITDA is 13.01, suggesting that despite the low P/E, the market applies a significant premium to sales revenue relative to earnings power, likely due to the high cash position or specific growth narratives surrounding the asset. The stock has traded between a 52-week low of $0.65 and a 52-week high of $1.68, meaning the current trading price sits at 55.96% below the 52-week high if calculated from the high, though without a specific current price in the facts, the range defines the volatility band. The beta value is 1.54, which indicates that the stock is expected to be 54% more volatile than the broader market, meaning it will likely amplify market movements with greater intensity during periods of rising or falling equities.
Growth & Income
Revenue growth is reported at 466.4% year-over-year, while earnings growth is 1.8%, demonstrating that earnings are growing significantly slower than revenue, which implies that the top-line expansion is not yet translating proportionally into bottom-line improvements or that the base effect from prior low earnings is distorting the growth rate. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning the firm reinvests all available earnings back into the business rather than distributing cash to shareholders. This lack of dividend distribution aligns with the company's high growth revenue trajectory and its strategy to utilize its substantial cash reserves for expansion or debt management rather than income generation. The overall growth and income profile reflects a high-risk, high-reward micro-cap structure characterized by explosive revenue expansion but minimal current earnings growth and no income distribution to investors.