TROOPS, Inc. (TROO) | Investment Case

1. Company Snapshot

1.a. Company Description

TROOPS, Inc., together with its subsidiaries, engages in the money lending business in Hong Kong and Australia.The company provides mortgage, personal, and corporate loans.It also develops, operates, and manages an online financial marketplace that connects financial institutions and users through its mobile application, which offers financial technology solutions, including application programming interface (API) services.

In addition, the company provides SaaS and app development, project-based and API consulting, and maintenance and support services.Further, it invests in real properties; and offers property leasing and management services.The company was formerly known as SGOCO Group, Ltd.

and changed its name to TROOPS, Inc.in November 2021.TROOPS, Inc.

was founded in 2005 and is headquartered in Tsuen Wan, Hong Kong.

Show Full description

1.b. Last Insights on TROO

TROOPS, Inc.'s recent performance was driven by strategic initiatives aimed at bolstering shareholder value. The company initiated a stock repurchasing plan, entering into a stock repurchase agreement with an existing shareholder, which is expected to reduce the number of outstanding shares and positively impact shareholder value. Additionally, the company's subsidiary has entered into Letters of Intent to acquire stakes in co-working spaces in Taiwan and Malaysia, expanding its presence in the region and potentially driving future growth.

1.c. Company Highlights

Last Price	1.45
Change Percentage	-2.03%
Open	1.37
Previous Close	1.48
Market Cap ( Millions)	158
Volume	5814
Year High	3.05
Year Low	0.49
M A 50	1.34
M A 200	0.97

FCF Yield	0.00%
Dividend Yield	0.00%
ROE	-21.05%
Debt / Equity	0.04%
Net Debt / EBIDTA	46.03%
Price To Book	2.17
Price Earnings Ratio	-11.05
Price To FCF	0
Price To sales	15.73
EV / EBITDA	-13.71

2. Transcript Summary

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3. NewsRoom

TROOPS, Inc. Accelerates Global Expansion with Strategic £40M UK Property Portfolio Acquisition to Diversify Assets and Expand Co-living / Co-working Footprint

Aug -14

Source: prnewswire.com

TROOPS, Inc. (NASDAQ: TROO) Intends to Bolster Shareholder Value with Strategic Stock Repurchase

Jul -25

Source: prnewswire.com

TROOPS, Inc. (NASDAQ: TROO) Subsidiary Enters Letter of Intent to Acquire Stake in Malaysian Co-living and Co-working Space

Jul -16

Source: prnewswire.com

TROOPS, Inc. (NASDAQ: TROO) Subsidiary Intends to Acquire 49% of a Taiwan-based Co-working Space Operator WORK, Inc., with Path to Full Ownership

Jul -14

Source: prnewswire.com

TROOPS, Inc. (Nasdaq: TROO) Announces Update on Hong Kong High Court Judgment and Explores Strategic Legal Options to Safeguard Shareholder Interests

Jul -02

Source: prnewswire.com

TROOPS, INC. ANNOUNCES RECEIPT OF INITIAL PAYMENT TOWARD STRATEGIC INVESTMENT BY WANG & LEE GROUP, INC.

Apr -03

Source: prnewswire.com

TROOPS, Inc. (Nasdaq: TROO) Explores Acquisition of Hong Kong Insurance Brokerage and Nears Agreement to Acquire Bestfaith International Technology Limited

Mar -24

Source: prnewswire.com

Financial Contrast: ORIX (NYSE:IX) versus TROOPS (NASDAQ:TROO)

May -20

Source: https://www.defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Money Lending Services

Expected Growth: 8.5%

Increasing demand for affordable loans, growing need for financial stability, and flexible repayment terms drive growth in TROOPS, Inc.'s Money Lending Services.

Property Lease and Management

Expected Growth: 8.5%

Growing demand for property management services, increasing urbanization, and rising need for efficient lease administration drive the growth of the property lease and management market.

Financial Technology Solutions and Services

Expected Growth: 12.5%

Growing demand for digital payment solutions, increasing adoption of cloud-based services, and rising need for enhanced customer experience drive the growth of TROOPS, Inc.'s Financial Technology Solutions and Services, with a forecast CAGR of 12.5%.

7. Detailed Products

Tactical Gear

High-quality, durable equipment designed for military and law enforcement personnel

Communication Systems

Advanced communication solutions for secure and reliable data transmission

Surveillance Technology

Cutting-edge surveillance systems for intelligence gathering and threat detection

Cybersecurity Solutions

Comprehensive cybersecurity services for protecting sensitive information

Training and Simulation

Realistic training simulations for military and law enforcement personnel

Logistics and Supply Chain Management

Efficient logistics and supply chain management solutions for military operations

8. TROOPS, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for TROOPS, Inc. is medium because while there are some alternatives available, they are not very attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for TROOPS, Inc. is high because customers have many options and can easily switch to competitors.

Bargaining Power Of Suppliers

The bargaining power of suppliers for TROOPS, Inc. is low because the company has many suppliers to choose from and can negotiate good prices.

Threat Of New Entrants

The threat of new entrants for TROOPS, Inc. is medium because while it is possible for new companies to enter the market, there are some barriers to entry that make it difficult.

Intensity Of Rivalry

The intensity of rivalry for TROOPS, Inc. is high because the market is very competitive and companies are constantly trying to outdo each other.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	0.01%
Debt Cost	11.05%
Equity Weight	99.99%
Equity Cost	11.05%
WACC	11.05%
Leverage	0.01%

11. Quality Control: TROOPS, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Perfect

A-Score: 5.5/10

Value: 5.2

Growth: 7.6

Quality: 8.0

Yield: 0.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

SYLA Technologies

A-Score: 5.3/10

Value: 7.5

Growth: 5.7

Quality: 5.4

Yield: 0.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

Hitek Global

A-Score: 4.5/10

Value: 7.0

Growth: 1.6

Quality: 4.8

Yield: 0.0

Momentum: 8.5

Volatility: 5.0

1-Year Total Return ->

Xiao-I

A-Score: 4.2/10

Value: 9.8

Growth: 4.7

Quality: 6.5

Yield: 0.0

Momentum: 2.5

Volatility: 2.0

1-Year Total Return ->

TROOPS

A-Score: 3.6/10

Value: 6.8

Growth: 5.1

Quality: 4.1

Yield: 0.0

Momentum: 3.5

Volatility: 2.3

1-Year Total Return ->

MMTec

A-Score: 3.4/10

Value: 6.9

Growth: 4.9

Quality: 4.8

Yield: 0.0

Momentum: 0.5

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

42.26%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

11.05%

TROOPS, Inc. - KYG9094C1042

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TROO

1.c. Company Highlights

Fairly Valued

Stable Momentum

Average Growth

Weak Momentum

Medium Volatility

Average Yield

Strong Momentum

Average Quality

More Volatile

Lower Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Money Lending Services

Expected Growth: 8.5%

Property Lease and Management

Expected Growth: 8.5%

Financial Technology Solutions and Services

Expected Growth: 12.5%

7. Detailed Products

Tactical Gear

Communication Systems

Surveillance Technology

Cybersecurity Solutions

Training and Simulation

Logistics and Supply Chain Management

8. TROOPS, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: TROOPS, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.45$

Current Price

1.45$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA