TH International Limited (THCH) is a Restaurants company in the Consumer Cyclical sector, currently trading at $2.20. It has a SharesGrow Score of 33/100, indicating a weak investment profile with 1 out of 7 criteria passed.
Valuation: THCH trades at a trailing Price-to-Earnings (P/E) of -1.4 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 0.06.
Financials: revenue is $1.4B, +33.8%/yr average growth. Net income is $412M (loss), growing at -28%/yr. Net profit margin is -29.6% (negative). Gross margin is 15.4% (+13.3 pp trend).
Balance sheet: total debt is $1.9B with negative equity of -$841M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 0.27 (tight liquidity). Debt-to-assets is 120.1%. Total assets: $1.6B.
SharesGrow 7-Criteria breakdown: Value 100/100 (Pass), Growth 58/100 (Partial), Past 0/100 (Fail), Health 0/100 (Fail), Moat 34/100 (Fail), Future ?/100 (Fail), Income 10/100 (Fail).
