Coinbase Global, Inc. (COIN) Stock Analysis and Metrics

Sector: Financial Services Industry: Financial Data & Stock Exchanges CIK: 0001679788

Market Cap 62.10 Bn

P/B 3.88

P/E 19.30

P/S 8.10

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...

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 two trading experiences: a simple interface for beginners and an advanced one for more experienced traders. For institutions, Coinbase offers a range of services, including custody solutions that use proprietary technology and operational processes to safeguard digital assets. The company also provides a developer suite, offering tools and services for developers to build and integrate cryptocurrencies into their applications.

The company's revenue is generated through transaction fees, subscription fees, and interest income from lending and staking. Coinbase's stablecoins, such as USDC, provide a stable store of value and are pegged to the value of a fiat currency. Staking allows users to earn rewards by participating in the validation of blockchain transactions.

Coinbase operates in a highly competitive cryptoeconomy, differentiating itself through its cohesive ecosystem of products and services, full-stack technology platform, significant investments in regulatory compliance and licensure, advanced cryptography and security expertise, and emphasis on accessibility, trust, and ease of use. The company's key competitors include other digital asset exchanges and custodians, but Coinbase's comprehensive offerings and commitment to security and compliance set it apart.

Coinbase serves a wide range of customers, including individual investors, businesses, and financial institutions. The company's commitment to security and regulatory compliance has earned it a reputation as a trusted and reliable partner in the cryptoeconomy.

Coinbase's brand names and trade names include Coinbase, USDC, and its developer suite. These brands are well-known in the digital asset industry and are synonymous with security, accessibility, and innovation.

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	SPGI	S&P Global Inc.	157.13 Bn	37.25	10.47	11.87 Bn
2	CME	Cme Group Inc.	96.82 Bn	26.05	15.13	152.46 Bn
3	ICE	Intercontinental Exchange, Inc.	91.82 Bn	29.04	7.33	19.51 Bn
4	MCO	Moodys Corp /De/	90.39 Bn	40.28	12.05	7.36 Bn
5	COIN	Coinbase Global, Inc.	62.10 Bn	19.30	8.10	7.59 Bn
6	NDAQ	Nasdaq, Inc.	54.56 Bn	33.58	6.68	9.55 Bn
7	MSCI	MSCI Inc.	43.97 Bn	35.94	14.39	5.62 Bn
8	CBOE	Cboe Global Markets, Inc.	25.92 Bn	26.50	5.61	1.57 Bn

Industry comparisons

Current Valuation	Value	Ind Avg
EV to Assets EV to Assets	1.88	2.79
EV to Cash from Ops. EV/CFO	181.08	33.08
EV to Debt EV to Debt	7.78	17.54
EV to EBIT EV/EBIT	14.80	18.27
EV to EBITDA EV/EBITDA	25.24	20.66
EV to Free Cash Flow [EV/FCF] EV/FCF	181.08	-39.00
EV to Market Cap EV to Market Cap	0.95	1.08
EV to Revenue EV/Rev	7.69	29.85
Price to Book Value [P/B] P/B	3.88	-0.11
Price to Earnings [P/E] P/E	19.30	23.23

Dividend Metrics	Value	Ind Avg
Dividend Coverage Ratio Dividend Coverage Ratio	0.00	2.12
Dividend Payout Ratio % Div Payout % (Qtr)	0.00	32.37
Dividend per Basic Share Div per Share (Qtr)	0.00	2.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr)	0.00	26.82
Interest Coverage Int. cover (Qtr)	47.84	8.16

Growth Metrics	Value	Ind Avg
Capex Growth (1y) % Capex 1y % (Qtr)	0.00	-11.26
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr)	12.89	21.19
Dividend Growth (1y) % Dividend Growth (1y) %	0.00	1.08
EBIAT Growth (1y) % EBIAT 1y % (Qtr)	100.59	10.39
EBITDA Growth (1y) % EBITDA 1y % (Qtr)	58.43	15.05
EBIT Growth (1y) % EBIT 1y % (Qtr)	140.75	17.06
EBT Growth (1y) % EBT 1y % (Qtr)	147.50	21.11
EPS Growth (1y) % EPS 1y % (Qtr)	96.90	31.00
FCF Growth (1y) % FCF 1y % (Qtr)	-79.47	30.56
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr)	44.34	13.67

Liquidity Ratios	Value	Ind Avg
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	1.97
Debt to Equity Ratio Debt/Equity (Qtr)	0.47	0.56
Interest Cover Ratio Int Coverage (Qtr)	47.84	8.16
Times Interest Earned Times Interest Earned (Qtr)	47.84	8.16

Profitability	Value	Ind Avg
EBITDA Margin % EBITDA Margin % (Qtr)	53.80	-985.15
EBIT Margin % EBIT Margin % (Qtr)	51.98	-991.90
EBT Margin % EBT Margin % (Qtr)	50.90	-1,071.07
Gross Margin % Gross Margin % (Qtr)	85.40	72.61
Net Profit Margin % Net Margin % (Qtr)	41.90	-1,440.85

Coinbase Global, Inc. (NASDAQ: COIN)

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Price action

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Bull case

Bear case

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Industry comparisons

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