Bitcoin Depot Inc. (NASDAQ: BTM)

Sector: Financial Services Industry: Capital Markets CIK: 0001901799
Market Cap 54.16 Mn
P/B 2.92
P/E 5.91
P/S 0.09
ROIC (Qtr) 43.73
Div Yield % 0.00
Rev 1y % (Qtr) 20.12
Total Debt (Qtr) 72.15 Mn
Debt/Equity (Qtr) 3.89

About

Bitcoin Depot Inc., commonly recognized by its ticker symbol BTM, operates within the fintech industry, providing cryptocurrency services to its clientele. The company's primary business activities encompass the buying and selling of cryptocurrencies, along with the provision of wallet services. Bitcoin Depot Inc. generates revenue through two primary channels: the buying and selling of cryptocurrencies, and the fees charged for its wallet services. The company's revenue model is centered around its core offerings, which include Bitcoin ATMs and...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 38.32M provides robust 0.53x coverage of total debt 72.15M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 60.38M provide 5.68x coverage of short-term debt 10.63M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 115.38M provide exceptional 295.83x coverage of deferred revenue 390000, showing strong service capability backing.
  • Operating cash flow of 38.32M provides strong 10.59x coverage of stock compensation 3.62M, indicating sustainable incentive practices.
  • Robust free cash flow of 32.69M exceeds capital expenditure of 5.63M by 5.81x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 38.32M barely covers its investment activities of (14.10M), with a coverage ratio of -2.72, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 38.32M shows concerning coverage of minority interest expenses of 26.22M, which is 1.46x, suggesting complex corporate structure risks.
  • Short-term investments of 13.63M exceed receivables of 1.51M by 9.02x, indicating potentially inefficient capital allocation given collection cycle needs.
  • R&D investment of 0 represents just 0x of SG&A expenses of 58.09M, indicating potential underinvestment in innovation relative to administrative overhead.
  • Cash position of 60.38M provides only 3.92x coverage of interest expenses of 15.39M, indicating potential refinancing risks in a rising rate environment.

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 0.61 1.07
EV to Cash from Ops. EV/CFO 2.00 15.33
EV to Debt EV to Debt 1.06 21.89
EV to EBIT EV/EBIT 2.41 -0.80
EV to EBITDA EV/EBITDA 1.21 11.20
EV to Free Cash Flow [EV/FCF] EV/FCF 2.35 43.08
EV to Market Cap EV to Market Cap 1.42 -0.05
EV to Revenue EV/Rev 0.12 12.82
Price to Book Value [P/B] P/B 2.92 3.09
Price to Earnings [P/E] P/E 5.91 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) 2.07 37.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 43.14 -12,429.64
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 83.15 1,588.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 2,158.63 270.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 118.49 333.57
EBIT Growth (1y) % EBIT 1y % (Qtr) 4,478.88 3,103.22
EBT Growth (1y) % EBT 1y % (Qtr) 239.13 3,039.53
EPS Growth (1y) % EPS 1y % (Qtr) 124.73 24.25
FCF Growth (1y) % FCF 1y % (Qtr) 119.71 -80.08
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 38.61 51.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 5.07 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.08
Cash Ratio Cash Ratio (Qtr) 1.43 2.01
Current Ratio Curr Ratio (Qtr) 1.88 3.47
Debt to Equity Ratio Debt/Equity (Qtr) 3.89 1.46
Interest Cover Ratio Int Coverage (Qtr) 2.07 37.53
Times Interest Earned Times Interest Earned (Qtr) 2.07 37.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 6.20 76.68
EBIT Margin % EBIT Margin % (Qtr) 5.01 46.81
EBT Margin % EBT Margin % (Qtr) 2.59 58.57
Gross Margin % Gross Margin % (Qtr) 19.10 53.60
Net Profit Margin % Net Margin % (Qtr) 1.40 29.41