Bitfarms Ltd (NASDAQ: BITF)

Sector: Financial Services Industry: Capital Markets CIK: 0001812477
Market Cap 1.43 Bn
P/B 2.34
P/E -11.00
P/S 5.31
ROIC (Qtr) -16.03
Div Yield % 0.00
Rev 1y % (Qtr) 155.78
Total Debt (Qtr) 73.68 Mn
Debt/Equity (Qtr) 0.12

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 86.95M provide 21.33x coverage of short-term debt 4.08M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (196.35M) provides exceptional 30.46x coverage of interest expenses (6.45M), showing strong debt service capability.
  • Strong tangible asset base of 798.54M provides 10.84x coverage of total debt 73.68M, indicating robust asset backing and low credit risk.
  • Free cash flow of (327.11M) provides exceptional 50.74x coverage of interest expense (6.45M), showing strong debt service ability.
  • Robust tangible asset base of 798.54M provides 3.10x coverage of working capital 257.66M, indicating strong operational backing.

Bear case

  • Operating cash flow of (196.35M) barely covers its investment activities of 99.39M, with a coverage ratio of -1.98, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of (196.35M) shows concerning coverage of stock compensation expenses of 14.92M, with a -13.16 ratio indicating potential earnings quality issues.
  • Free cash flow of (327.11M) provides weak coverage of capital expenditures of 130.76M, with a -2.50 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (151.84M) show weak coverage of depreciation charges of 124.76M, with a -1.22 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (327.11M) represents just -7.23x of debt issuance 45.23M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Capital Markets
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GS Goldman Sachs Group Inc 284.23 Bn 17.94 4.84 911.32 Bn
2 MS Morgan Stanley 279.63 Bn 17.97 4.05 353.12 Bn
3 SCHW Schwab Charles Corp 179.33 Bn 23.09 7.83 27.59 Bn
4 HOOD Robinhood Markets, Inc. 106.92 Bn 48.73 25.43 0.00 Bn
5 CRCL Circle Internet Group, Inc. 40.97 Bn 261.00 24.22 0.15 Bn
6 IBKR Interactive Brokers Group, Inc. 28.23 Bn 30.79 4.75 28.43 Bn
7 LPLA LPL Financial Holdings Inc. 27.60 Bn 33.13 1.77 7.52 Bn
8 FUTU Futu Holdings Ltd 22.89 Bn 18.13 8.54 1.75 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.78 1.07
EV to Cash from Ops. EV/CFO -7.25 15.33
EV to Debt EV to Debt 19.31 21.89
EV to EBIT EV/EBIT -9.37 -0.80
EV to EBITDA EV/EBITDA 191.34 11.20
EV to Free Cash Flow [EV/FCF] EV/FCF -4.35 43.08
EV to Market Cap EV to Market Cap 0.99 -0.05
EV to Revenue EV/Rev 5.27 12.82
Price to Book Value [P/B] P/B 2.34 3.09
Price to Earnings [P/E] P/E -11.00 6.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 4.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 10.37
Dividend per Basic Share Div per Share (Qtr) 0.00 0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -8.68
Interest Coverage Int. cover (Qtr) 23.55 37.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 54.37 -12,429.64
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 19.25 1,588.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -36.38 270.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -84.24 333.57
EBIT Growth (1y) % EBIT 1y % (Qtr) -46.51 3,103.22
EBT Growth (1y) % EBT 1y % (Qtr) -6.65 3,039.53
EPS Growth (1y) % EPS 1y % (Qtr) 42.50 24.25
FCF Growth (1y) % FCF 1y % (Qtr) 20.55 -80.08
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 66.14 51.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.34 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.08
Cash Ratio Cash Ratio (Qtr) 0.74 2.01
Current Ratio Curr Ratio (Qtr) 3.20 3.47
Debt to Equity Ratio Debt/Equity (Qtr) 0.12 1.46
Interest Cover Ratio Int Coverage (Qtr) 23.55 37.53
Times Interest Earned Times Interest Earned (Qtr) 23.55 37.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -10.00 76.68
EBIT Margin % EBIT Margin % (Qtr) -56.22 46.81
EBT Margin % EBT Margin % (Qtr) -53.84 58.57
Gross Margin % Gross Margin % (Qtr) -2.80 53.60
Net Profit Margin % Net Margin % (Qtr) -48.30 29.41