IREN LTD (IREN) Stock Fundamental Analysis
USA - NASDAQ:IREN - AU0000185993 - Common Stock
60.75 USD
+2.53 (+4.35%)
60.4 USD
-0.35 (-0.58%)
We assign a fundamental rating of 5 out of 10 to IREN. IREN was compared to 284 industry peers in the Software industry. IREN has only an average score on both its financial health and profitability. IREN shows excellent growth, but is valued quite expensive already. With these ratings, IREN could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year IREN was profitable.
In the past year IREN had a positive cash flow from operations.
IREN had negative earnings in 4 of the past 5 years.
IREN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.96%, IREN is in the better half of the industry, outperforming 67.37% of the companies in the same industry.
IREN's Return On Equity of 4.78% is fine compared to the rest of the industry. IREN outperforms 68.07% of its industry peers.
With a decent Return On Invested Capital value of 0.33%, IREN is doing good in the industry, outperforming 60.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 4.78% | ||
| ROIC | 0.33% |
ROA(3y)-17.1%
ROA(5y)-33.96%
ROE(3y)-18.04%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 17.35%, IREN belongs to the best of the industry, outperforming 81.75% of the companies in the same industry.
The Operating Margin of IREN (2.32%) is better than 64.21% of its industry peers.
IREN's Operating Margin has improved in the last couple of years.
The Gross Margin of IREN (68.27%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.32% | ||
| PM (TTM) | 17.35% | ||
| GM | 68.27% |
OM growth 3Y14.05%
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IREN is destroying value.
Compared to 1 year ago, IREN has more shares outstanding
Compared to 5 years ago, IREN has more shares outstanding
IREN has a worse debt/assets ratio than last year.
2.2 Solvency
IREN has an Altman-Z score of 8.97. This indicates that IREN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of IREN (8.97) is better than 82.81% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that IREN is somewhat dependend on debt financing.
The Debt to Equity ratio of IREN (0.53) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 8.97 |
ROIC/WACC0.03
WACC11.19%
2.3 Liquidity
IREN has a Current Ratio of 4.29. This indicates that IREN is financially healthy and has no problem in meeting its short term obligations.
IREN has a better Current ratio (4.29) than 84.91% of its industry peers.
IREN has a Quick Ratio of 4.29. This indicates that IREN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 4.29, IREN belongs to the best of the industry, outperforming 84.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.29 | ||
| Quick Ratio | 4.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 234.48% over the past year.
Looking at the last year, IREN shows a very strong growth in Revenue. The Revenue has grown by 167.65%.
Measured over the past years, IREN shows a very strong growth in Revenue. The Revenue has been growing by 196.84% on average per year.
EPS 1Y (TTM)234.48%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%129.63%
Revenue 1Y (TTM)167.65%
Revenue growth 3Y103.98%
Revenue growth 5Y196.84%
Sales Q2Q%226.08%
3.2 Future
Based on estimates for the next years, IREN will show a very strong growth in Earnings Per Share. The EPS will grow by 175.64% on average per year.
IREN is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 53.20% yearly.
EPS Next Y1180.07%
EPS Next 2Y338.17%
EPS Next 3Y175.64%
EPS Next 5YN/A
Revenue Next Year129.14%
Revenue Next 2Y78.08%
Revenue Next 3Y43.74%
Revenue Next 5Y53.2%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 1012.50, IREN can be considered very expensive at the moment.
Based on the Price/Earnings ratio, IREN is valued a bit more expensive than the industry average as 60.70% of the companies are valued more cheaply.
IREN is valuated expensively when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 76.55, the valuation of IREN can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as IREN.
The average S&P500 Price/Forward Earnings ratio is at 22.55. IREN is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1012.5 | ||
| Fwd PE | 76.55 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IREN's earnings are expected to grow with 175.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y338.17%
EPS Next 3Y175.64%
5. Dividend
5.1 Amount
IREN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
60.75
+2.53 (+4.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners60.92%
Inst Owner ChangeN/A
Ins Owners5%
Ins Owner Change32.85%
Market Cap16.52B
Revenue(TTM)501.02M
Net Income(TTM)86.94M
Analysts80
Price Target62.03 (2.11%)
Short Float %18.53%
Short Ratio1.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.92%
Min EPS beat(2)-49.1%
Max EPS beat(2)-22.73%
EPS beat(4)1
Avg EPS beat(4)26.48%
Min EPS beat(4)-187.16%
Max EPS beat(4)364.93%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.23%
Min Revenue beat(2)-8.9%
Max Revenue beat(2)-1.56%
Revenue beat(4)1
Avg Revenue beat(4)-3.99%
Min Revenue beat(4)-8.9%
Max Revenue beat(4)1.42%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)102.73%
PT rev (3m)187.22%
EPS NQ rev (1m)-16.79%
EPS NQ rev (3m)-24.76%
EPS NY rev (1m)-20.64%
EPS NY rev (3m)-9.25%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)7.86%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)26.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1012.5 | ||
| Fwd PE | 76.55 | ||
| P/S | 32.98 | ||
| P/FCF | N/A | ||
| P/OCF | 67.2 | ||
| P/B | 9.09 | ||
| P/tB | 9.09 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.06
EY0.1%
EPS(NY)0.79
Fwd EY1.31%
FCF(TTM)-1.2
FCFYN/A
OCF(TTM)0.9
OCFY1.49%
SpS1.84
BVpS6.68
TBVpS6.68
PEG (NY)0.86
PEG (5Y)N/A
Graham Number3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 4.78% | ||
| ROCE | 0.42% | ||
| ROIC | 0.33% | ||
| ROICexc | 0.41% | ||
| ROICexgc | 0.41% | ||
| OM | 2.32% | ||
| PM (TTM) | 17.35% | ||
| GM | 68.27% | ||
| FCFM | N/A |
ROA(3y)-17.1%
ROA(5y)-33.96%
ROE(3y)-18.04%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y28.44%
ROICexgc growth 5YN/A
ROICexc growth 3Y28.52%
ROICexc growth 5YN/A
OM growth 3Y14.05%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 114.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.29 | ||
| Quick Ratio | 4.29 | ||
| Altman-Z | 8.97 |
F-Score6
WACC11.19%
ROIC/WACC0.03
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)114.65%
Cap/Sales(5y)115.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)234.48%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%129.63%
EPS Next Y1180.07%
EPS Next 2Y338.17%
EPS Next 3Y175.64%
EPS Next 5YN/A
Revenue 1Y (TTM)167.65%
Revenue growth 3Y103.98%
Revenue growth 5Y196.84%
Sales Q2Q%226.08%
Revenue Next Year129.14%
Revenue Next 2Y78.08%
Revenue Next 3Y43.74%
Revenue Next 5Y53.2%
EBIT growth 1Y197.2%
EBIT growth 3Y132.63%
EBIT growth 5YN/A
EBIT Next Year1105.18%
EBIT Next 3Y201.65%
EBIT Next 5Y122.45%
FCF growth 1Y-265.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y370.88%
OCF growth 3Y125.1%
OCF growth 5YN/A
IREN LTD / IREN FAQ
What is the fundamental rating for IREN stock?
ChartMill assigns a fundamental rating of 5 / 10 to IREN.
What is the valuation status for IREN stock?
ChartMill assigns a valuation rating of 2 / 10 to IREN LTD (IREN). This can be considered as Overvalued.
How profitable is IREN LTD (IREN) stock?
IREN LTD (IREN) has a profitability rating of 5 / 10.
What is the valuation of IREN LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for IREN LTD (IREN) is 1012.5 and the Price/Book (PB) ratio is 9.09.