Bedrijfsoverzicht
Addentax Group Corp. is an entity operating within the Industrials sector, specifically focused on the Integrated Freight & Logistics industry, where it provides specialized logistic services primarily within China. The company structures its operations through three distinct segments: Garment Manufacturing, Logistics Services, and Property Management and Subleasing, engaging in the manufacture and distribution of garments alongside the provision of logistics and property management solutions. This organization employs a workforce of 112 individuals and maintains a market capitalization of $5.47M, with total annual revenue recorded at $4.25M. These valuation and revenue figures indicate that the company operates on a micro-cap scale, suggesting a small market presence relative to larger industrial peers and positioning it as a niche player with limited diversification potential. The combination of a relatively high market cap for a small-cap stock and significant cash reserves points to a capital-intensive business model that requires substantial liquidity to sustain its logistics and manufacturing activities.
Financiële gezondheid
Addentax Group Corp. reported revenue of $4.25M over the trailing twelve months, yet this revenue generated a net income of $-7,781,188, revealing a highly distressed cost structure where expenses far exceed operational earnings. The company's EBITDA stands at $-1,286,443, indicating that even before financing costs and non-operating items, core operations are generating negative cash conversion from earnings. Free cash flow for the period was $-1,809,419, which signifies a severe lack of financial flexibility as the business consumes more cash than it generates from its operations. Gross margin is calculated at 9.9%, suggesting that the cost of goods sold consumes nearly 90% of revenue, which is typical for manufacturing but leaves little buffer for overhead. Operating margin sits at -7.0%, while profit margin is significantly depressed at -158.9%, illustrating that operating inefficiencies and likely one-time costs or losses are driving profitability well below zero. The company holds $17.77M in cash against total debt of $934,357, resulting in a debt-to-equity ratio of 4.32. Despite the high leverage ratio, the massive cash position acts as a buffer, though the negative earnings make the debt servicing capability reliant on cash holdings rather than operating cash flow. The current ratio is an exceptionally high 21.67, indicating that the company holds far more current assets than current liabilities, which points to potential liquidity surplus or asset classification issues rather than tight working capital management. Return on Equity is -34.2% and Return on Assets is -3.5%, metrics that reveal that management is currently destroying shareholder value and utilizing assets inefficiently to generate returns.
Waarderingsbeoordeling
The P/E Ratio (TTM) is listed as N/A due to the negative net income, and the Forward P/E is also N/A, meaning traditional earnings-based valuation models cannot be applied to assess the expected earnings trajectory at this time. The price-to-book ratio is 0.25, indicating that the market values the company at significantly less than its book value, a scenario often seen in distressed or turnaround situations where intangible assets may not be fully reflected on the balance sheet. The price-to-sales ratio is 1.29, which is a critical alternative valuation metric given the absence of earnings data, while the EV/EBITDA stands at 8.83, providing a multiple based on enterprise value that remains positive despite the negative earnings. The stock has traded within a 52-week range between a high of $27.90 and a low of $3.33. Without the current share price explicitly provided in the data, the valuation context relies heavily on these historical extremes which demonstrate extreme volatility within the period. The beta value is -38.06, an anomalous figure that suggests a negative correlation to the broader market or extreme data irregularity, implying that price movements are inversely related to market indices rather than moving in tandem with them.
Growth & Income
Revenue growth year-over-year is 12.8%, indicating a positive expansion in top-line sales, whereas earnings growth is N/A due to the company's ongoing net losses. The divergence between positive revenue growth and negative earnings growth implies that the company is scaling its logistics and manufacturing operations while struggling to control costs or achieve profitability at the current scale. The dividend yield is N/A and the payout ratio is 0.0%, confirming that the company does not distribute dividends to shareholders. Since the company is not a dividend payer, it effectively reinvests its limited cash flows back into the business or utilizes its existing cash reserves to fund operations and potentially service its debt rather than distributing income. The overall growth and income profile presents a mixed picture with top-line expansion but persistent profitability challenges and no current income generation for investors through dividends.