Circle Internet Group, Inc. (NYSE: CRCL)

Sector: Financial Services Industry: Capital Markets CIK: 0001876042
Market Cap 40.97 Bn
P/B 13.55
P/E 261.00
P/S 24.22
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 72.14
Total Debt (Qtr) 149.09 Mn
Debt/Equity (Qtr) 0.05

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 75.56B provide 506.81x coverage of short-term debt 149.09M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 76.10B provides 510.43x coverage of total debt 149.09M, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 76.10B provides 34.57x coverage of working capital 2.20B, indicating strong operational backing.
  • Cash reserves of 75.56B provide solid 1351.83x coverage of other non-current liabilities 55.90M, indicating strong liquidity.
  • Cash reserves of 75.56B provide robust 1.03x coverage of current liabilities 73.70B, indicating strong short-term solvency.

Bear case

  • Long-term investments of 133.33M represent a high 5.68x of fixed assets 23.49M, indicating potential overexposure to financial assets versus operational capabilities.
  • Tax assets of 13.41M provide limited offset against tax liabilities of 31.34M, which is 0.43x, indicating potential future cash flow pressure from tax obligations.
  • Retained earnings of (1.43B) provide limited buffer against comprehensive income items of 14.74M, which is -96.76x, indicating elevated exposure to market risks.
  • Current liabilities of 73.70B significantly exceed receivables of 22.15M, which is 3326.79x, indicating potential working capital stress.
  • Other current liabilities of 73.28B represent a high 3307.92x of receivables 22.15M, suggesting potential short-term liquidity pressure.

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 0.00 1.07
EV to Cash from Ops. EV to Cash from Ops. 0.00 15.33
EV to Debt EV to Debt 0.00 21.89
EV to EBIT EV to EBIT 0.00 -0.80
EV to EBITDA EV to EBITDA 0.00 11.20
EV to Free Cash Flow [EV/FCF] EV to Free Cash Flow [EV/FCF] 0.00 43.08
EV to Market Cap EV to Market Cap 0.00 -0.05
EV to Revenue EV to Revenue 0.00 12.82
Price to Book Value [P/B] P/B 13.55 3.09
Price to Earnings [P/E] P/E 261.00 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 Interest Coverage 0.00 37.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -12,429.64
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.00 1,588.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.00 270.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 333.57
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.00 3,103.22
EBT Growth (1y) % EBT 1y % (Qtr) 0.00 3,039.53
EPS Growth (1y) % EPS Growth (1y) % 0.00 24.25
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 -80.08
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 51.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.08
Cash Ratio Cash Ratio (Qtr) 1.03 2.01
Current Ratio Curr Ratio (Qtr) 1.03 3.47
Debt to Equity Ratio Debt/Equity (Qtr) 0.05 1.46
Interest Cover Ratio Interest Cover Ratio 0.00 37.53
Times Interest Earned Times Interest Earned 0.00 37.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 76.68
EBIT Margin % EBIT Margin % (Qtr) 0.00 46.81
EBT Margin % EBT Margin % (Qtr) 0.00 58.57
Gross Margin % Gross Margin % (Qtr) 0.00 53.60
Net Profit Margin % Net Margin % (Qtr) 0.00 29.41