Bitfufu Inc. (NASDAQ: FUFU)

Sector: Financial Services Industry: Capital Markets CIK: 0001921158
Market Cap 419.03 Mn
P/B 1.92
P/E 6.52
P/S 0.89
ROIC (Qtr) 26.40
Div Yield % 0.00
Rev 1y % (Qtr) 100.00
Total Debt (Qtr) 40.26 Mn
Debt/Equity (Qtr) 0.18

About

Bitfufu Inc., known by its ticker symbol FUFU, is a rapidly growing digital asset mining service provider and a leading player in the cloud-mining industry. The company is committed to establishing a secure, compliant, and transparent blockchain infrastructure. Bitfufu offers a variety of digital asset mining solutions, including one-stop cloud-mining services and miner hosting services to both institutional customers and individual digital asset enthusiasts. The company's primary business activities revolve around generating digital assets, specifically...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 493.86M provides 12.27x coverage of total debt 40.26M, indicating robust asset backing and low credit risk.
  • Tangible assets of 493.86M provide exceptional 15.78x coverage of deferred revenue 31.30M, showing strong service capability backing.
  • Cash position of 32.63M provides exceptional 358.59x coverage of minority interest expenses 91000, indicating strong liquidity.
  • Long-term investments of 184000 provide solid 0.71x coverage of long-term debt 260000, indicating strategic financial planning.
  • Cash reserves of 32.63M exceed inventory value of 145000 by 225.05x, indicating strong liquidity and inventory management.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 3.62M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 222.15M significantly exceed cash reserves of 32.63M, which is 6.81x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • High receivables of 46.50M relative to inventory of 145000 (320.67 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 31.30M, which is 0x, raising concerns about future service delivery capabilities.
  • Cash position of 32.63M provides weak coverage of payables of 126.60M, which is 0.26x, indicating potential working capital stress and supplier relationship risks.

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 0.84 1.07
EV to Cash from Ops. EV/CFO -3.80 15.33
EV to Debt EV to Debt 10.41 21.89
EV to EBIT EV/EBIT 5.40 -0.80
EV to EBITDA EV/EBITDA 5.12 11.20
EV to Free Cash Flow [EV/FCF] EV/FCF -3.55 43.08
EV to Market Cap EV to Market Cap 1.00 -0.05
EV to Revenue EV/Rev 0.89 12.82
Price to Book Value [P/B] P/B 1.92 3.09
Price to Earnings [P/E] P/E 6.52 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) 9.45 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) -15.67 1,588.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 70.63 270.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 333.57
EBIT Growth (1y) % EBIT 1y % (Qtr) 52.66 3,103.22
EBT Growth (1y) % EBT 1y % (Qtr) 55.30 3,039.53
EPS Growth (1y) % EPS 1y % (Qtr) 66.67 24.25
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 -80.08
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -36.59 51.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.95 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.08
Cash Ratio Cash Ratio (Qtr) 0.20 2.01
Current Ratio Curr Ratio (Qtr) 2.58 3.47
Debt to Equity Ratio Debt/Equity (Qtr) 0.18 1.46
Interest Cover Ratio Int Coverage (Qtr) 9.45 37.53
Times Interest Earned Times Interest Earned (Qtr) 9.45 37.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 76.68
EBIT Margin % EBIT Margin % (Qtr) 16.40 46.81
EBT Margin % EBT Margin % (Qtr) 14.67 58.57
Gross Margin % Gross Margin % (Qtr) 4.80 53.60
Net Profit Margin % Net Margin % (Qtr) 13.60 29.41