HIVE Digital Technologies Ltd. (NASDAQ: HIVE)

Sector: Financial Services Industry: Capital Markets CIK: 0001720424
Market Cap 440.47 Mn
P/B 0.71
P/E 20.21
P/S 2.28
ROIC (Qtr) 34.00
Div Yield % 0.00
Rev 1y % (Qtr) 285.26
Total Debt (Qtr) 23.15 Mn
Debt/Equity (Qtr) 0.04

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 21.27M provides robust 0.92x coverage of total debt 23.15M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 22.64M provide 2.21x coverage of short-term debt 10.24M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 692.97M provides 29.93x coverage of total debt 23.15M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 21.27M provides exceptional 15.16x coverage of interest expenses 1.40M, showing strong debt service capability.
  • Robust tangible asset base of 692.97M provides 8.34x coverage of working capital 83.06M, indicating strong operational backing.

Bear case

  • Operating cash flow of 21.27M barely covers its investment activities of (263.90M), with a coverage ratio of -0.08, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Short-term investments of 97.04M significantly exceed cash reserves of 22.64M, which is 4.29x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Free cash flow of (184.52M) provides weak coverage of capital expenditures of 205.79M, with a -0.90 ratio suggesting additional external financing needs for growth initiatives.
  • The company's operating cash flow of 21.27M shows concerning coverage of stock compensation expenses of 19.39M, with a 1.10 ratio indicating potential earnings quality issues.
  • Operating earnings of 28.14M show weak coverage of depreciation charges of 99.10M, with a 0.28 ratio indicating high capital intensity and potential reinvestment needs.

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 0.66 1.07
EV to Cash from Ops. EV/CFO 21.44 15.33
EV to Debt EV to Debt 19.70 21.89
EV to EBIT EV/EBIT 16.21 -0.80
EV to EBITDA EV/EBITDA 1.53 11.20
EV to Free Cash Flow [EV/FCF] EV/FCF -2.47 43.08
EV to Market Cap EV to Market Cap 1.04 -0.05
EV to Revenue EV/Rev 2.36 12.82
Price to Book Value [P/B] P/B 0.71 3.09
Price to Earnings [P/E] P/E 20.21 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) 20.06 37.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -178.03 -12,429.64
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 212.71 1,588.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -55.02 270.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 39.12 333.57
EBIT Growth (1y) % EBIT 1y % (Qtr) -49.08 3,103.22
EBT Growth (1y) % EBT 1y % (Qtr) -49.34 3,039.53
EPS Growth (1y) % EPS 1y % (Qtr) -76.27 24.25
FCF Growth (1y) % FCF 1y % (Qtr) -99.77 -80.08
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 69.34 51.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.28 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.08
Cash Ratio Cash Ratio (Qtr) 0.42 2.01
Current Ratio Curr Ratio (Qtr) 2.55 3.47
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 1.46
Interest Cover Ratio Int Coverage (Qtr) 20.06 37.53
Times Interest Earned Times Interest Earned (Qtr) 20.06 37.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 65.80 76.68
EBIT Margin % EBIT Margin % (Qtr) 14.56 46.81
EBT Margin % EBT Margin % (Qtr) 13.84 58.57
Gross Margin % Gross Margin % (Qtr) 87.50 53.60
Net Profit Margin % Net Margin % (Qtr) 11.30 29.41