One-glance verdict
Undervalued
$22.96 our estimate vs market $3.60
84% below our estimate, below the bear case
Fundamentals snapshot
Addentax Group Corp.
ATXG · NCM · Industrials · Integrated Freight & Logistics
Current price
$3.60
52-week range
$2.91 - $17.55
Market cap
$4.24M
Balance sheet
Healthy
-2.49x Concerning
Net cash $7.49M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 3/10 years.
- Risk Operating margin compressed from -5.4% to -19.7% over 3 years.
- Risk Return on equity was -9.6% last year — the company lost money on shareholders' equity.
What this company does
Addentax Group Corp.
Addentax Group is a Chinese company with several businesses, primarily offering logistics services (managing the storage and shipping of products for other companies) and manufacturing clothing for fashion brands. By operating in different industries, the company has multiple ways to earn money instead of depending on the success of a single market.
How the company got here
Addentax Group started in 2014 and is a holding company (a parent company that owns other companies called subsidiaries) with its main businesses in China. For years, its stock was traded on a smaller market. A key turning point was in August 2022, when it held an IPO (Initial Public Offering, the first time a company sells its stock to the public) to get listed on the major Nasdaq stock exchange, raising $25 million. The stock price soared dramatically on its first day, which brought a lot of attention to the company.
What it actually does
Addentax Group is an integrated service provider, which means it runs several different types of businesses under one roof. Based in Shenzhen, China, its main operations involve making clothes, moving goods for other companies, and providing business advice. It also operates a digital book business and provides property management services. The company serves a range of customers from clothing wholesalers to trading companies and individuals needing financial advice.
Garment Manufacturing
This part of the company makes and sells clothing, primarily for high-end fashion brands. It operates its own factories in China, which allows it to control the quality of the clothes and make sure deliveries are on time. The main customers for this segment are wholesalers (companies that buy large quantities of goods to sell to retailers) in China. This is one of the company's original and core business lines.
Logistics Services
Think of this segment as the company's shipping and handling department for other businesses in China. It provides services like transportation, warehousing (storing goods), packaging, and handling customs paperwork for imports and exports. While the company owns its own vehicles, it also hires outside contractors to help, which gives it flexibility without the high cost of owning a massive fleet. This division serves trading companies and other logistics firms.
Consulting
This is the advisory part of Addentax's business. It offers consulting services to individuals and business owners on topics like insurance and financial planning for things like a child's education. The company provides administrative support and coordination for these clients. This segment serves middle-to-high income families and business owners who operate across borders.
What management is betting on now
The company is making a significant push into modern financial technology, often called 'Fintech'. Recent announcements show a focus on acquiring online lending platforms and developing an AI (Artificial Intelligence) logistics system to make its shipping services smarter. Management has also announced plans to enter the world of cryptocurrency by exploring stablecoins (a type of digital currency designed to have a stable value) and other digital assets. These strategic priorities suggest the company is betting its future growth on technology and finance, expanding beyond its traditional manufacturing and logistics roots.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$642.12K
FY2025 Q3
$235.29K
FY2025 Q4
$-38.45K
FY2026 Q1
$-383.93K
FY2026 Q2
$-700.03K
FY2026 Q3
$-147.67K
FY2026 Q4
$447.14K
FY2027 Q1
$-25.13K
Revenue
$3.44M
Net income
$2.39M
Diluted EPS
—
Operating cash flow
$-24.37K
Free cash flow
$-25.13K
Fetching…
Sources
Revenue
$2.59M
Net income
$222.33K
Diluted EPS
-6.21
Operating cash flow
$478.77K
Free cash flow
$447.14K
Fetching…
Sources
Revenue
$975.82K
Net income
$-4.20M
Diluted EPS
—
Operating cash flow
$-114.86K
Free cash flow
$-147.67K
Fetching…
Sources
Revenue
$820.69K
Net income
$-102.84K
Diluted EPS
—
Operating cash flow
$-661.44K
Free cash flow
$-700.03K
Fetching…
Sources
Revenue
$980.95K
Net income
$-392.44K
Diluted EPS
-0.06
Operating cash flow
$-306.07K
Free cash flow
$-383.93K
Fetching…
Sources
Revenue
$929.04K
Net income
$-2.07M
Diluted EPS
-0.28
Operating cash flow
$13.62K
Free cash flow
$-38.45K
Fetching…
Sources
Revenue
$1.06M
Net income
$-1.09M
Diluted EPS
-0.19
Operating cash flow
$273.38K
Free cash flow
$235.29K
Fetching…
Sources
Revenue
$1.34M
Net income
$-721.53K
Diluted EPS
-0.13
Operating cash flow
$722.18K
Free cash flow
$642.12K
Fetching…
Sources
Is it cheap or expensive?
Fair value $22.96 vs current price $3.60
Our most-likely fair value is $22.96 a share — about 537.8% above today's price of $3.60, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $7.5M - more cash than debt. Interest coverage -2.5x.
Net debt
$-7.49M
Interest coverage
-2.49x
Addentax Group Corp.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ATXG
BASELINE
Addentax Group Corp.
Total debt $5.37M Interest coverage -2.49x This is the baseline the peer rows are being compared against.
Total debt $4.93M Interest coverage -20.72x Neither company has much profit cushion over interest right now.
Total debt $6.89M Interest coverage -3.21x Neither company has much profit cushion over interest right now.
Total debt $120.64M Interest coverage -25.09x Neither company has much profit cushion over interest right now.
Total debt $93.12M Interest coverage 6.17x This peer still has a real interest-payment cushion, while ATXG does not.
Total debt $1.15M Interest coverage -115.81x Neither company has much profit cushion over interest right now.
What you should know
The case for and against ATXG
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 3/10 years.
Risks
-
Operating margin compressed from -5.4% to -19.7% over 3 years.
-
Return on equity was -9.6% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
—
P/B
0.15x
P/S
0.53x
EV/EBITDA
2.04x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
12.3%
Operating margin
-19.7%
Net margin
-21.0%
ROE
-9.6%
ROA
-2.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.21x
Current ratio
3.71x
Quick ratio
2.67x
Total debt
$5.37M
Total cash
$12.87M
Growth
How the business has been compounding
Revenue TTM
$7.83M
Revenue 5Y CAGR
—
EPS TTM
-3.69
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-321.89K
Free CF TTM
$-784.50K
FCF margin
-10.0%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—