Company Overview
TH International Limited operates a significant presence in the Chinese beverage market, primarily focused on managing and operating Tim Hortons coffee shops across mainland China, Hong Kong, and Macau. The company's product portfolio includes a diverse range of beverages such as brewed tea, coffee, milk tea, lemonade, hot chocolate, and various coffee drinks, alongside engagement in franchise-related business activities. This enterprise is classified within the Consumer Cyclical sector and specifically operates inside the Restaurants industry, positioning it as a key player in the food and beverage consumption landscape. In terms of scale, TH International Limited holds a market capitalization of $64.34M and generated annual revenue of $1.34B while employing 1,568 individuals. These financial metrics indicate that despite the relatively modest market cap, the company generates substantial revenue, suggesting a business model that leverages high operational volume or specific regional pricing dynamics within its primary markets.
Financial Health
The company reported total revenue of $1.34B over the trailing twelve months, yet this revenue figure masks a net income of $-344,413,344 and an EBITDA of $-108,972,016. The substantial gap between the $1.34B revenue and the negative net income reveals a cost structure where operating expenses, including cost of goods sold and overhead, significantly outweigh gross profits, resulting in a bottom-line loss. Free cash flow stands at $-103,986,520, which indicates a current lack of financial flexibility as the company is consuming cash rather than generating it for reinvestment or debt repayment. The company maintains $131.61M in cash against a total debt load of $1.80B, highlighting a heavily leveraged balance sheet where liabilities far exceed liquid assets. The current ratio is 0.24, a figure that signals potential short-term liquidity challenges, as the company possesses only roughly 24 cents in current assets for every dollar of current liabilities. Regarding profitability efficiency, the Return on Equity is listed as N/A due to the company's financial structure, while the Return on Assets is -11.2%, revealing that the asset base is currently generating negative returns. Additionally, the Gross Margin is 38.5%, whereas the Operating Margin is -15.5% and the Profit Margin is -25.2%, illustrating that while the core product sales retain nearly 40% of revenue as gross profit, subsequent operating costs erade these gains, and the final profit margin reflects the deep losses incurred.
Valuation Assessment
The valuation metrics present a complex picture, with a Trailing Twelve Months P/E Ratio listed as N/A and a Forward P/E of -0.43. The difference between a nonexistent trailing P/E and a negative forward P/E implies that the market is currently pricing in expected earnings contraction or continued losses rather than a standard earnings trajectory. The Price to Book ratio is -0.44, a negative figure that indicates the market is valuing the company well below its book value, suggesting investors are pricing in significant asset write-downs or restructuring needs rather than a premium over book value. Alternative valuation measures include a Price to Sales ratio of 0.05 and an EV/EBITDA of -15.94, both of which suggest that traditional valuation multiples are not applicable due to negative earnings, and the market is assigning a very low multiple relative to sales. The stock has traded between a 52-Week High of $3.30 and a 52-Week Low of $1.69, and without a specific current share price provided in the facts, the valuation relative to this range remains defined by these historical bounds. The Beta is 0.53, which means the stock's price volatility is significantly lower than the broader market, moving at roughly half the intensity of the market index.
Growth & Income
Revenue growth over the year is -0.4%, while earnings growth is listed as N/A due to the negative net income position. The fact that earnings growth is not available while revenue shows a slight contraction implies that the company is not currently growing earnings faster than revenue; instead, it is navigating a period of revenue stagnation or decline alongside deep losses. As a non-dividend payer, the company does not distribute a dividend yield or maintain a payout ratio, as these metrics are listed as N/A and 0.0% respectively. This absence of dividend payments indicates that the company reinvests any available resources, or rather, retains its capital position to manage its debt obligations and operational challenges rather than returning cash to shareholders. The overall growth and income profile is characterized by negative revenue momentum and a complete absence of dividend income, reflecting a capital-intensive growth phase or a turnaround situation where profitability has not yet been restored.