One-glance verdict
Undervalued
$7.86 our estimate vs market $0.16
98% below our estimate, below the bear case
Fundamentals snapshot
IT Tech Packaging, Inc.
ITP · ASE · Basic Materials · Paper & Paper Products
Current price
$0.16
52-week range
$0.15 - $0.39
Market cap
$2.64M
Balance sheet
Distressed
-10.64x Concerning
Net debt $2.12M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 4.1% last year.
- Reward Free cash flow was positive in 6/10 years.
- Risk Return on equity was -6.9% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 3.2% (peer median: 8.9%).
What this company does
IT Tech Packaging, Inc.
IT Tech Packaging is a company in China that produces and sells a variety of paper products. It makes money by selling paper used for cardboard shipping boxes, printing paper, and everyday household goods like toilet paper and tissues. The company's performance is important because it is tied to both industrial activity and basic consumer needs, which can provide a mix of business stability and growth.
How the company got here
Founded in 1996 and based in China, the company started as a paper manufacturer. It was originally known as Orient Paper, Inc. before changing its name to IT Tech Packaging, Inc. in 2018. The company has been publicly listed on the NYSE American stock exchange since 2009. Over the years, it has expanded its paper product lines and also ventured into producing other items like face masks.
What it actually does
IT Tech Packaging makes and sells a variety of paper products primarily in North China. Think of them as a supplier for other businesses; for example, they make the kind of paper that gets wavy in the middle of a cardboard box and the paper used for printing books or magazines. They also produce everyday tissue products like toilet paper and paper towels. A smaller part of their business has included making things like digital photo paper and face masks.
Dongfang Paper
This part of the company focuses on making two main types of paper. The first is corrugating medium paper, which is the wavy layer inside cardboard that gives it strength. The second is offset printing paper, which is used by commercial printers for things like magazines and flyers. This segment also produces tissue paper products sold under the Dongfang Paper brand.
Tengsheng Paper
Similar to the Dongfang Paper segment, Tengsheng Paper is also involved in producing corrugating medium paper, offset printing paper, and tissue paper products. This indicates that the company has multiple operations focused on these core paper categories. The customers for these products are typically other businesses, such as box makers and printing companies.
Baoding Shengde
This segment is a bit different from the others as it has produced more specialized products. Baoding Shengde has been responsible for manufacturing digital photo paper, for high-quality picture printing. It has also been the part of the company that produces non-medical and medical single-use face masks.
What management is betting on now
The company appears to be focused on its core paper manufacturing business, particularly in North China, an area with many industrial customers. They have highlighted their use of recycled paper as a primary raw material, which can be a key factor in managing costs and appealing to environmentally conscious customers. In the past, the company has also shown a willingness to adapt to market demands, such as by starting face mask production. This suggests a strategy of maintaining their main paper business while being open to new opportunities.
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.
FY2023 Q4
$-7.70M
FY2024 Q1
$615.39K
FY2024 Q2
$668.30K
FY2024 Q3
$1.23M
FY2024 Q4
$3.45M
FY2025 Q1
$-2.48M
FY2025 Q2
$1.34M
FY2025 Q3
$1.50M
Revenue
$25.60M
Net income
$-1.45M
Diluted EPS
-0.11
Operating cash flow
$1.50M
Free cash flow
$1.50M
Fetching…
Sources
Revenue
$24.79M
Net income
$-1.95M
Diluted EPS
-0.16
Operating cash flow
$1.36M
Free cash flow
$1.34M
Fetching…
Sources
Revenue
$10.90M
Net income
$-3.50M
Diluted EPS
-0.35
Operating cash flow
$-2.47M
Free cash flow
$-2.48M
Fetching…
Sources
Revenue
$17.64M
Net income
$-4.04M
Diluted EPS
-0.40
Operating cash flow
$3.47M
Free cash flow
$3.45M
Fetching…
Sources
Revenue
$25.08M
Net income
$-1.97M
Diluted EPS
-0.20
Operating cash flow
$1.48M
Free cash flow
$1.23M
Fetching…
Sources
Revenue
$26.25M
Net income
$-77.75K
Diluted EPS
-0.01
Operating cash flow
$721.92K
Free cash flow
$668.30K
Fetching…
Sources
Revenue
$6.86M
Net income
$-3.75M
Diluted EPS
-0.37
Operating cash flow
$624.42K
Free cash flow
$615.39K
Fetching…
Sources
Revenue
$20.96M
Net income
$-3.98M
Diluted EPS
-0.40
Operating cash flow
$5.38M
Free cash flow
$-7.70M
Fetching…
Sources
Is it cheap or expensive?
Fair value $7.86 vs current price $0.16
Our most-likely fair value is $7.86 a share — about 4,954.8% above today's price of $0.16, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $2.1M. Interest coverage -10.6x.
Net debt
$2.12M
Interest coverage
-10.64x
IT Tech Packaging, Inc.'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.
Distressed
Worse cushion
Baseline
Better cushion
ITP
BASELINE
IT Tech Packaging, Inc.
Total debt $10.19M Interest coverage -10.64x This is the baseline the peer rows are being compared against.
Total debt $5.48M Interest coverage -7.22x Neither company has much profit cushion over interest right now.
Total debt $373.10M Interest coverage 0.74x This peer still has a real interest-payment cushion, while ITP does not.
Total debt $428.20M Interest coverage -0.71x Neither company has much profit cushion over interest right now.
Total debt $72.72M Interest coverage 19.91x This peer still has a real interest-payment cushion, while ITP does not.
Total debt $1.03B Interest coverage 0.67x This peer still has a real interest-payment cushion, while ITP does not.
What you should know
The case for and against ITP
2 Rewards
3 Risks
Rewards
-
Revenue grew 4.1% last year.
-
Free cash flow was positive in 6/10 years.
Risks
-
Return on equity was -6.9% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 3.2% (peer median: 8.9%).
-
Operating margin compressed from 1.0% to -3.9% over 3 years.
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
0.02x
P/S
0.03x
EV/EBITDA
1.01x
PEG ratio
0.12x
Profitability
How much profit each dollar creates
Gross margin
5.7%
Operating margin
-3.9%
Net margin
-13.9%
ROE
-6.9%
ROA
-3.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.07x
Current ratio
1.92x
Quick ratio
1.27x
Total debt
$10.19M
Total cash
$8.07M
Growth
How the business has been compounding
Revenue TTM
$78.94M
Revenue 5Y CAGR
-6.9%
EPS TTM
-0.91
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$3.86M
Free CF TTM
$5.97M
FCF margin
7.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2013-11-26