IREN Ltd (NASDAQ: IREN)

Sector: Financial Services Industry: Capital Markets CIK: 0001878848
Market Cap 10.00 Bn
P/B 5.93
P/E 42.69
P/S 19.66
ROIC (Qtr) -1.81
Div Yield % 0.00
Rev 1y % (Qtr) 71.83
Total Debt (Qtr) 2.58 Bn
Debt/Equity (Qtr) 1.53

About

Iris Energy Ltd, or IREN, operates in the data center and high-performance computing (HPC) industries, with a focus on renewable energy. The company was established in 2018 and is listed on the Nasdaq Global Select Market under the ticker symbol IREN. IREN's primary business activities encompass Bitcoin mining and HPC solutions, including AI Cloud Services. IREN generates revenue through its Bitcoin mining operations, where it earns Bitcoin through a combination of block rewards and transaction fees from the operation of its specialized computers,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 2.19B provide 52.37x coverage of short-term debt 41.78M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 384.62M provides exceptional 23.22x coverage of interest expenses 16.56M, showing strong debt service capability.
  • Strong operating cash flow of 384.62M provides 1.59x coverage of SG&A expenses 242.19M, showing efficient operational cost management.
  • Tangible assets of 4.64B provide exceptional 148.42x coverage of deferred revenue 31.29M, showing strong service capability backing.
  • Operating cash flow of 384.62M provides strong 12.29x coverage of deferred revenue 31.29M, indicating service delivery capability.

Bear case

  • Operating cash flow of 384.62M barely covers its investment activities of (1.41B), with a coverage ratio of -0.27, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of (839.15M) provides weak coverage of capital expenditures of 1.22B, with a -0.69 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 384.62M barely covers operating expenses of (54.02M) with a -7.12 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Free cash flow of (839.15M) represents just -0.62x of debt issuance 1.35B, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High financing cash flow of 2.93B relative to working capital of 1.81B, which is 1.62x suggests concerning dependence on external funding for operational needs.

Product and Service Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

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 433.97 Bn 57.26 12.78 911.32 Bn
2 MS Morgan Stanley 314.55 Bn 23.99 5.50 353.12 Bn
3 SCHW Schwab Charles Corp 194.70 Bn 30.37 9.37 27.59 Bn
4 BMNR Bitmine Immersion Technologies, Inc. 148.85 Bn -30.55 20,710.58 0.00 Bn
5 HOOD Robinhood Markets, Inc. 72.97 Bn 33.26 17.36 0.00 Bn
6 LPLA LPL Financial Holdings Inc. 30.55 Bn 68.41 5.00 7.52 Bn
7 IBKR Interactive Brokers Group, Inc. 28.46 Bn 103.89 11.54 28.43 Bn
8 CRCL Circle Internet Group, Inc. 27.14 Bn 172.85 16.04 0.15 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.37 1.29
EV to Cash from Ops. EV/CFO 16.77 -15.44
EV to Debt EV to Debt 2.50 18.96
EV to EBIT EV/EBIT 25.01 32.20
EV to EBITDA EV/EBITDA 49.39 45.42
EV to Free Cash Flow [EV/FCF] EV/FCF -7.68 9.12
EV to Market Cap EV to Market Cap 0.64 1.11
EV to Revenue EV/Rev 12.68 300.60
Price to Book Value [P/B] P/B 5.93 4.37
Price to Earnings [P/E] P/E 42.69 16.68
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.92
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 7.75
Dividend per Basic Share Div per Share (Qtr) 0.00 0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -8.99
Interest Coverage Int. cover (Qtr) 15.57 -165.38
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -99.65 -12,127.34
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 724.58 1,715.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.17
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 547.56 -2,046.50
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -3,960.13
EBIT Growth (1y) % EBIT 1y % (Qtr) 604.78 728.13
EBT Growth (1y) % EBT 1y % (Qtr) 562.35 838.81
EPS Growth (1y) % EPS 1y % (Qtr) 381.71 26.25
FCF Growth (1y) % FCF 1y % (Qtr) -62.67 -3,406.06
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 264.56 54.45
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.07 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.09
Cash Ratio Cash Ratio (Qtr) 4.78 1.46
Current Ratio Curr Ratio (Qtr) 4.96 2.98
Debt to Equity Ratio Debt/Equity (Qtr) 1.53 1.50
Interest Cover Ratio Int Coverage (Qtr) 15.57 -165.38
Times Interest Earned Times Interest Earned (Qtr) 15.57 -165.38
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -959.56
EBIT Margin % EBIT Margin % (Qtr) 75.52 -1,006.04
EBT Margin % EBT Margin % (Qtr) 47.43 -981.88
Gross Margin % Gross Margin % (Qtr) 19.40 53.03
Net Profit Margin % Net Margin % (Qtr) 46.00 -988.00