Marwynn Holdings, Inc. is a holding company operating through its subsidiaries, FuAn Enterprise, Inc. and Grand Forest Cabinetry Inc. The company specializes in supply chain solutions, offering food, snacks, non-alcoholic beverages, kitchen cabinets, flooring, and home improvement products. It also provides supply chain consulting and market expansion support services. Marwynn Holdings was incorporated in 2024 and is based in Irvine, California.

Marwynn Holdings, Inc. Common stock

Consumer Cyclical

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

The stock has been falling steadily in the past six months, losing 0% in total. The stock has lagged its global peers from the same sector and industry (as shown above), underperforming then by 2ppts in total. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is slightly negative.

The company has reported modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 13.8% in the last 12 months, a decline from 16.5% in FY23. 

Historically, MWYN has reported weak net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -0.6%, down from 6.5% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to -1.2%, below the peers. 

Marwynn Holdings, Inc. Common stock reported a return on equity (RoE) of -3.0% in the last 12 months, up from -5.4% in FY24. 

Another important profitability metric, return on assets (RoA), amounted to -0.6% in the last 12 months, an increase from -0.7% in FY24. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 2.7 in the past several years. This ratio implies a strong shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

MWYN has poor trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is relatively stable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to slow historical revenue growth, negligible return on capital, poor working capital management, poor cash flow generation, and an unfavourable capital structure. We note adequate interest coverage, among the positive credit factors. 

In highly turbulent market conditions, MWYN is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, MWYN is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is overvalued on EV/EBITDA. 

Log in

Marwynn Holdings, Inc. Common stock

$ 1.56

1

Marwynn Holdings, Inc. Common stock

$ 1.56

1

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

$ 1.56

About

About

About

About