BTCS Inc. (NASDAQ: BTCS)

Sector: Financial Services Industry: Capital Markets CIK: 0001436229
Market Cap 184.17 Mn
P/B 0.82
P/E 3.38
P/S 15.71
ROIC (Qtr) -11.36
Div Yield % 1.57
Rev 1y % (Qtr) 568.13
Total Debt (Qtr) 67.60 Mn
Debt/Equity (Qtr) 0.30

About

BTCS Inc., a company listed on Nasdaq, operates in the blockchain technology sector with a focus on proof-of-stake blockchain infrastructure. The company's primary goal is to achieve scalable growth through a diverse range of business streams that are built on its core and proven blockchain infrastructure operations. BTCS's main business activities revolve around blockchain technology and its applications. The company operates in various countries and regions, with its headquarters in the United States. Its operations are divided into several segments,...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 298.86M provides 4.42x coverage of total debt 67.60M, indicating robust asset backing and low credit risk.
  • Short-term investments of 293.70M provide solid 50.95x coverage of other current liabilities 5.76M, indicating strong liquidity.
  • Tangible assets of 298.86M provide robust 51.84x coverage of other current liabilities 5.76M, indicating strong asset backing.
  • Short-term investments of 293.70M provide healthy 1.24x coverage of working capital 235.99M, indicating strong liquidity.
  • Short-term investments of 293.70M provide 5.20x coverage of short-term debt 56.50M, showing strong liquidity management.

Bear case

  • Operating cash flow of (7.17M) barely covers its investment activities of (200M), with a coverage ratio of 0.04, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (200M) provide weak support for R&D spending of 780541, which is -256.23x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 293.70M significantly exceed cash reserves of 4.49M, which is 65.47x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (7.17M) shows concerning coverage of stock compensation expenses of 4.39M, with a -1.64 ratio indicating potential earnings quality issues.
  • Free cash flow of (7.18M) provides weak coverage of capital expenditures of 8920, with a -805.23 ratio suggesting additional external financing needs for growth initiatives.

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 0.64 1.07
EV to Cash from Ops. EV/CFO -26.81 15.33
EV to Debt EV to Debt 2.85 21.89
EV to EBIT EV/EBIT 3.42 -0.80
EV to EBITDA EV/EBITDA -10.18 11.20
EV to Free Cash Flow [EV/FCF] EV/FCF -26.78 43.08
EV to Market Cap EV to Market Cap 1.04 -0.05
EV to Revenue EV/Rev 16.41 12.82
Price to Book Value [P/B] P/B 0.82 3.09
Price to Earnings [P/E] P/E 3.38 6.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 4.22
Dividend Payout Ratio % Div Payout % (Qtr) 5.30 10.37
Dividend per Basic Share Div per Share (Qtr) 0.05 0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -30.86 -8.68
Interest Coverage Int. cover (Qtr) 32.68 37.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -891,900.00 -12,429.64
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1,662.93 1,588.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 1,376.42 270.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -326.08 333.57
EBIT Growth (1y) % EBIT 1y % (Qtr) 1,376.42 3,103.22
EBT Growth (1y) % EBT 1y % (Qtr) 1,331.24 3,039.53
EPS Growth (1y) % EPS 1y % (Qtr) 213.33 24.25
FCF Growth (1y) % FCF 1y % (Qtr) -120.52 -80.08
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.26 51.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.08
Cash Ratio Cash Ratio (Qtr) 0.07 2.01
Current Ratio Curr Ratio (Qtr) 4.79 3.47
Debt to Equity Ratio Debt/Equity (Qtr) 0.30 1.46
Interest Cover Ratio Int Coverage (Qtr) 32.68 37.53
Times Interest Earned Times Interest Earned (Qtr) 32.68 37.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 479.20 76.68
EBIT Margin % EBIT Margin % (Qtr) 479.12 46.81
EBT Margin % EBT Margin % (Qtr) 464.46 58.57
Gross Margin % Gross Margin % (Qtr) 10.20 53.60
Net Profit Margin % Net Margin % (Qtr) 464.50 29.41