IREN LTD (IREN) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:IREN • AU0000185993

54.66 USD

-5.18 (-8.66%)

Last: Jan 30, 2026, 12:18 PM

Fundamental Rating

Taking everything into account, IREN scores 5 out of 10 in our fundamental rating. IREN was compared to 278 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.

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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

IREN's Return On Assets of 2.96% is fine compared to the rest of the industry. IREN outperforms 65.11% of its industry peers.
IREN's Return On Equity of 4.78% is fine compared to the rest of the industry. IREN outperforms 67.63% of its industry peers.
IREN has a Return On Invested Capital of 0.33%. This is comparable to the rest of the industry: IREN outperforms 59.35% of its industry peers.

		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 a decent Profit Margin value of 17.35%, IREN is doing good in the industry, outperforming 79.86% of the companies in the same industry.
The Operating Margin of IREN (2.32%) is better than 64.75% of its industry peers.
In the last couple of years the Operating Margin of IREN has grown nicely.
IREN has a Gross Margin (68.27%) which is in line with its industry peers.

		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

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IREN is destroying value.
The number of shares outstanding for IREN has been increased compared to 1 year ago.
IREN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for IREN is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 9.37 indicates that IREN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.37, IREN belongs to the best of the industry, outperforming 89.93% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that IREN is somewhat dependend on debt financing.
IREN has a worse Debt to Equity ratio (0.53) than 66.55% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.53
Debt/FCF	N/A
Altman-Z	9.37

ROIC/WACC0.03

WACC11.52%

2.3 Liquidity

A Current Ratio of 4.29 indicates that IREN has no problem at all paying its short term obligations.
IREN has a better Current ratio (4.29) than 83.45% of its industry peers.
A Quick Ratio of 4.29 indicates that IREN has no problem at all paying its short term obligations.
IREN has a Quick ratio of 4.29. This is amongst the best in the industry. IREN outperforms 83.45% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	4.29
Quick Ratio	4.29

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

IREN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 494.72%, which is quite impressive.
The Revenue has grown by 229.07% in the past year. This is a very strong growth!
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)494.72%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%590.91%

Revenue 1Y (TTM)229.07%

Revenue growth 3Y103.98%

Revenue growth 5Y196.84%

Sales Q2Q%341.8%

3.2 Future

The Earnings Per Share is expected to grow by 61.05% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 53.20% on average over the next years. This is a very strong growth

EPS Next Y71.11%

EPS Next 2Y-2.96%

EPS Next 3Y61.05%

EPS Next 5YN/A

Revenue Next Year129.72%

Revenue Next 2Y129.5%

Revenue Next 3Y88.68%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 28.18, which means the current valuation is very expensive for IREN.
The rest of the industry has a similar Price/Earnings ratio as IREN.
When comparing the Price/Earnings ratio of IREN to the average of the S&P500 Index (28.39), we can say IREN is valued inline with the index average.
The Price/Forward Earnings ratio is 90.41, which means the current valuation is very expensive for IREN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IREN indicates a slightly more expensive valuation: IREN is more expensive than 60.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, IREN is valued quite expensively.

		Industry Rank	Sector Rank
PE	28.18
Fwd PE	90.41

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.
A more expensive valuation may be justified as IREN's earnings are expected to grow with 61.05% in the coming years.