Terawulf Inc. (NASDAQ: WULF)

Sector: Financial Services Industry: Capital Markets CIK: 0001083301
Market Cap 4.97 Bn
P/B 20.07
P/E -8.82
P/S 29.63
ROIC (Qtr) -14.04
Div Yield % 0.00
Rev 1y % (Qtr) 86.92
Total Debt (Qtr) 1.09 Bn
Debt/Equity (Qtr) 4.39

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 712.75M provide 357.27x coverage of short-term debt 2M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust tangible asset base of 2.40B provides 103.17x coverage of working capital 23.25M, indicating strong operational backing.
  • Cash reserves of 712.75M provide robust 1.01x coverage of current liabilities 705.85M, indicating strong short-term solvency.
  • Cash reserves of 712.75M provide solid 1.71x coverage of other non-current liabilities 417.98M, indicating strong liquidity.
  • Cash position of 712.75M represents healthy 30.65x of working capital 23.25M, demonstrating strong operational liquidity.

Bear case

  • Operating cash flow of 0 barely covers operating expenses of 111.75M with a 0 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • R&D investment of 0 represents just 0x of SG&A expenses of 113.38M, indicating potential underinvestment in innovation relative to administrative overhead.
  • Other current assets of 3.94M provide weak coverage of payables of 62.43M, which is 0.06x, suggesting potential working capital stress in near term.
  • Current liabilities of 705.85M significantly exceed receivables of 11.91M, which is 59.24x, indicating potential working capital stress.
  • Other current liabilities of 641.43M represent a high 53.83x of receivables 11.91M, 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 2.19 1.07
EV to Cash from Ops. EV/CFO -86.73 15.33
EV to Debt EV to Debt 4.95 21.89
EV to EBIT EV/EBIT -9.90 -0.80
EV to EBITDA EV/EBITDA -73.12 11.20
EV to Free Cash Flow [EV/FCF] EV/FCF -12.65 43.08
EV to Market Cap EV to Market Cap 1.08 -0.05
EV to Revenue EV/Rev 32.07 12.82
Price to Book Value [P/B] P/B 20.07 3.09
Price to Earnings [P/E] P/E -8.82 6.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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) -25.98 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) 2,877.50 1,588.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1,861.39 270.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 333.57
EBIT Growth (1y) % EBIT 1y % (Qtr) -1,861.39 3,103.22
EBT Growth (1y) % EBT 1y % (Qtr) -949.42 3,039.53
EPS Growth (1y) % EPS 1y % (Qtr) -846.67 24.25
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 -80.08
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.18 51.33
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 -0.08
Cash Ratio Cash Ratio (Qtr) 1.01 2.01
Current Ratio Curr Ratio (Qtr) 1.03 3.47
Debt to Equity Ratio Debt/Equity (Qtr) 4.39 1.46
Interest Cover Ratio Int Coverage (Qtr) -25.98 37.53
Times Interest Earned Times Interest Earned (Qtr) -25.98 37.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 76.68
EBIT Margin % EBIT Margin % (Qtr) -324.05 46.81
EBT Margin % EBT Margin % (Qtr) -336.53 58.57
Gross Margin % Gross Margin % (Qtr) 50.20 53.60
Net Profit Margin % Net Margin % (Qtr) -336.00 29.41