Digi Power X Inc. (NASDAQ: DGXX)

Sector: Utilities Industry: Utilities - Independent Power Producers CIK: 0001854368
Market Cap 85.28 Mn
P/B 1.93
P/E -6.97
P/S 2.74
ROIC (Qtr) -40.41
Div Yield % 0.00
Rev 1y % (Qtr) -11.23
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Digihost Technology Inc., known by its ticker symbol DGHI, is a U.S.-based company that operates in the blockchain technology and computer infrastructure industry, with a primary focus on digital currency mining. The company was established in Canada in 2017 and has since undergone significant transformations, including a reverse takeover in 2020. Digihost currently operates mining facilities in Buffalo and North Tonawanda, New York, as well as a facility in Columbiana, Alabama. Digihost's main business activities revolve around digital currency...

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Investment thesis

Bull case

  • Operating cash flow of (43.14M) provides exceptional 1415.59x coverage of interest expenses (30475), showing strong debt service capability.
  • Free cash flow of (46.74M) provides exceptional 1533.58x coverage of interest expense (30475), showing strong debt service ability.
  • Short-term investments of 15.35M provide solid 7.12x coverage of other current liabilities 2.16M, indicating strong liquidity.
  • Tangible assets of 50.31M provide robust 23.34x coverage of other current liabilities 2.16M, indicating strong asset backing.
  • Cash reserves of 6.21M provide robust 1.27x coverage of current liabilities 4.91M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (43.14M) barely covers its investment activities of 19.73M, with a coverage ratio of -2.19, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of (43.14M) shows concerning coverage of stock compensation expenses of 4.19M, with a -10.29 ratio indicating potential earnings quality issues.
  • Free cash flow of (46.74M) provides weak coverage of capital expenditures of 3.60M, with a -13 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (12.27M) show weak coverage of depreciation charges of 9.18M, with a -1.34 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (46.74M) represents just -527.94x of debt issuance 88525, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Utilities - Independent Power Producers
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VST Vistra Corp. 73.36 Bn -53.28 5.34 17.66 Bn
2 NRG Nrg Energy, Inc. 46.15 Bn 44.25 4.80 12.11 Bn
3 TLN Talen Energy Corp 17.14 Bn 75.84 7.45 2.99 Bn
4 KEN Kenon Holdings Ltd. 4.39 Bn 9.20 5.46 1.38 Bn
5 TAC Transalta Corp 3.50 Bn -28.96 1.95 2.66 Bn
6 DGXX Digi Power X Inc. 0.09 Bn -6.97 2.74 0.00 Bn
7 PAM Pampa Energy Inc. 0.00 Bn 0.00 0.00 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.58 1.83
EV to Cash from Ops. EV/CFO -1.88 49.01
EV to Debt EV to Debt 0.00 3.50
EV to EBIT EV/EBIT -6.61 5.95
EV to EBITDA EV/EBITDA -15.75 35.45
EV to Free Cash Flow [EV/FCF] EV/FCF -1.74 12.20
EV to Market Cap EV to Market Cap 0.95 1.12
EV to Revenue EV/Rev 2.60 5.24
Price to Book Value [P/B] P/B 1.93 0.88
Price to Earnings [P/E] P/E -6.97 6.68
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.64
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.42
Dividend per Basic Share Div per Share (Qtr) 0.00 0.40
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.07
Interest Coverage Int. cover (Qtr) 402.50 69.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -10.22 -12.19
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 955.72 146.90
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -3.03
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 24.05 5.66
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -619.78 -128.84
EBIT Growth (1y) % EBIT 1y % (Qtr) 24.05 -6.04
EBT Growth (1y) % EBT 1y % (Qtr) 23.62 -8.31
EPS Growth (1y) % EPS 1y % (Qtr) 38.89 -17.95
FCF Growth (1y) % FCF 1y % (Qtr) -39.68 18.34
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 20.43 7.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.61 0.51
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 1.27 1.07
Current Ratio Curr Ratio (Qtr) 4.57 2.39
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 2.48
Interest Cover Ratio Int Coverage (Qtr) 402.50 69.73
Times Interest Earned Times Interest Earned (Qtr) 402.50 69.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -9.90 30.25
EBIT Margin % EBIT Margin % (Qtr) -39.35 15.08
EBT Margin % EBT Margin % (Qtr) -39.25 7.19
Gross Margin % Gross Margin % (Qtr) -25.30 26.28
Net Profit Margin % Net Margin % (Qtr) -39.30 5.55