Coinbase Global, Inc. (NASDAQ: COIN)

Sector: Financial Services Industry: Financial Data & Stock Exchanges CIK: 0001679788
Market Cap 41.84 Bn
P/B 2.61
P/E 13.00
P/S 5.45
ROIC (Qtr) 9.41
Div Yield % 0.00
Rev 1y % (Qtr) 55.05
Total Debt (Qtr) 7.59 Bn
Debt/Equity (Qtr) 0.47

About

Coinbase Global, Inc. (COIN) is a prominent player in the digital asset industry, offering a comprehensive suite of products and services that cater to consumers, institutions, and developers. The company's mission is to enhance economic freedom worldwide by providing a secure and accessible platform for individuals and organizations to engage with cryptocurrencies. Coinbase's offerings are diverse and extensive. For consumers, the company provides a user-friendly platform for buying, selling, and storing cryptocurrencies. This platform includes...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 8.76B provide 5.29x coverage of short-term debt 1.65B, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 325.85M provides exceptional 618.31x coverage of minority interest expenses 527000, showing strong core operations.
  • Strong tangible asset base of 25.93B provides 3.42x coverage of total debt 7.59B, indicating robust asset backing and low credit risk.
  • Cash position of 8.76B provides exceptional 16613.17x coverage of minority interest expenses 527000, indicating strong liquidity.
  • Operating cash flow of 325.85M fully covers other non-current liabilities 205.34M by 1.59x, showing strong long-term stability.

Bear case

  • Operating cash flow of 325.85M barely covers its investment activities of (1.70B), with a coverage ratio of -0.19, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (1.70B) provide weak support for R&D spending of 1.54B, which is -1.10x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 8.76B provide limited coverage of acquisition spending of (687.63M), which is -12.73x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 325.85M shows concerning coverage of stock compensation expenses of 830.94M, with a 0.39 ratio indicating potential earnings quality issues.
  • Operating cash flow of 325.85M provides minimal 0.47x coverage of tax expenses of 687.01M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Financial Data & Stock Exchanges
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CME Cme Group Inc. 108.31 Bn 56.60 23.47 152.46 Bn
2 MCO Moodys Corp /De/ 106.86 Bn 244.59 56.48 7.36 Bn
3 SPGI S&P Global Inc. 105.67 Bn 43.02 13.77 11.87 Bn
4 ICE Intercontinental Exchange, Inc. 96.76 Bn 29.19 7.65 20.28 Bn
5 NDAQ Nasdaq, Inc. 49.34 Bn 112.66 15.25 9.55 Bn
6 MSCI MSCI Inc. 42.66 Bn 35.48 13.61 6.31 Bn
7 COIN Coinbase Global, Inc. 41.84 Bn 13.00 5.45 7.59 Bn
8 CBOE Cboe Global Markets, Inc. 28.66 Bn 29.30 6.21 1.57 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.24 2.21
EV to Cash from Ops. EV/CFO 118.87 43.43
EV to Debt EV to Debt 5.10 7.86
EV to EBIT EV/EBIT 9.71 35.32
EV to EBITDA EV/EBITDA 16.57 31.71
EV to Free Cash Flow [EV/FCF] EV/FCF 118.87 -19.56
EV to Market Cap EV to Market Cap 0.93 1.38
EV to Revenue EV/Rev 5.05 24.41
Price to Book Value [P/B] P/B 2.61 -8.37
Price to Earnings [P/E] P/E 13.00 62.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.12
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 32.41
Dividend per Basic Share Div per Share (Qtr) 0.00 2.65
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 26.82
Interest Coverage Int. cover (Qtr) 47.84 8.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -8.40
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 12.89 24.23
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 100.59 10.48
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 58.43 15.08
EBIT Growth (1y) % EBIT 1y % (Qtr) 140.75 17.37
EBT Growth (1y) % EBT 1y % (Qtr) 147.50 21.15
EPS Growth (1y) % EPS 1y % (Qtr) 96.90 30.92
FCF Growth (1y) % FCF 1y % (Qtr) -79.47 30.86
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 44.34 13.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.24 0.61
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.24
Cash Ratio Cash Ratio (Qtr) 0.95 0.51
Current Ratio Curr Ratio (Qtr) 2.40 1.98
Debt to Equity Ratio Debt/Equity (Qtr) 0.47 0.60
Interest Cover Ratio Int Coverage (Qtr) 47.84 8.17
Times Interest Earned Times Interest Earned (Qtr) 47.84 8.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 53.80 -985.10
EBIT Margin % EBIT Margin % (Qtr) 51.98 -991.86
EBT Margin % EBT Margin % (Qtr) 50.90 -1,071.03
Gross Margin % Gross Margin % (Qtr) 85.40 72.64
Net Profit Margin % Net Margin % (Qtr) 41.90 -1,440.91