BITFARMS LTD/CANADA (BITF.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BITF - CA09173B1076 - Common Stock
3.78 CAD
+0.09 (+2.44%)
BITF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 68 industry peers in the Software industry. The financial health of BITF is average, but there are quite some concerns on its profitability. While showing a medium growth rate, BITF is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- BITF had negative earnings in the past year.
- In the past year BITF has reported a negative cash flow from operations.
- In the past 5 years BITF reported 4 times negative net income.
- In multiple years BITF reported negative operating cash flow during the last 5 years.
1.2 Ratios
- BITF has a Return On Assets of -16.26%. This is in the lower half of the industry: BITF underperforms 61.76% of its industry peers.
- BITF has a Return On Equity (-21.32%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.26% | ||
| ROE | -21.32% | ||
| ROIC | N/A |
ROA(3y)-35.51%
ROA(5y)-26.79%
ROE(3y)-46.46%
ROE(5y)-47.92%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- BITF does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- BITF does not have a ROIC to compare to the WACC, probably because it is not profitable.
- BITF has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for BITF has been increased compared to 5 years ago.
- BITF has a better debt/assets ratio than last year.
2.2 Solvency
- BITF has an Altman-Z score of 4.48. This indicates that BITF is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 4.48, BITF is doing good in the industry, outperforming 73.53% of the companies in the same industry.
- BITF has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
- BITF has a Debt to Equity ratio (0.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.48 |
ROIC/WACCN/A
WACC10.23%
2.3 Liquidity
- BITF has a Current Ratio of 3.20. This indicates that BITF is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 3.20, BITF is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
- A Quick Ratio of 3.14 indicates that BITF has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 3.14, BITF is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.2 | ||
| Quick Ratio | 3.14 |
3. Growth
3.1 Past
- BITF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.37%, which is quite impressive.
- Looking at the last year, BITF shows a very strong growth in Revenue. The Revenue has grown by 47.60%.
- Measured over the past years, BITF shows a very strong growth in Revenue. The Revenue has been growing by 42.85% on average per year.
EPS 1Y (TTM)58.37%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-62.5%
Revenue 1Y (TTM)47.6%
Revenue growth 3Y4.4%
Revenue growth 5Y42.85%
Sales Q2Q%54.38%
3.2 Future
- BITF is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.53% yearly.
- BITF is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 35.37% yearly.
EPS Next Y-125.81%
EPS Next 2Y-4.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year50.02%
Revenue Next 2Y22.6%
Revenue Next 3Y52.61%
Revenue Next 5Y35.37%
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- BITF reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Also next year BITF is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as BITF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 37.78 |
4.3 Compensation for Growth
- BITF's earnings are expected to decrease with -4.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.53%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- BITF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BITFARMS LTD/CANADA / BITF.CA FAQ
Can you provide the ChartMill fundamental rating for BITFARMS LTD/CANADA?
ChartMill assigns a fundamental rating of 3 / 10 to BITF.CA.
What is the valuation status for BITF stock?
ChartMill assigns a valuation rating of 1 / 10 to BITFARMS LTD/CANADA (BITF.CA). This can be considered as Overvalued.
Can you provide the profitability details for BITFARMS LTD/CANADA?
BITFARMS LTD/CANADA (BITF.CA) has a profitability rating of 1 / 10.