42.7 USD
+4.93 (+13.05%)
43.7 USD
+1 (+2.34%)
We assign a fundamental rating of 5 out of 10 to IREN. IREN was compared to 276 industry peers in the Software industry. IREN has an average financial health and profitability rating. IREN shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
IREN had positive earnings in the past year.
IREN had a positive operating cash flow in the past year.
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
The Return On Assets of IREN (2.96%) is better than 65.22% of its industry peers.
Looking at the Return On Equity, with a value of 4.78%, IREN is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
IREN has a Return On Invested Capital (0.33%) which is in line with 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
IREN has a better Profit Margin (17.35%) than 79.71% of its industry peers.
With a decent Operating Margin value of 2.32%, IREN is doing good in the industry, outperforming 64.86% of the companies in the same industry.
In the last couple of years the Operating Margin of IREN has grown nicely.
With a Gross Margin value of 68.27%, IREN perfoms like the industry average, outperforming 48.91% of the companies in the same 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.
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.
IREN has a worse debt/assets ratio than last year.
2.2 Solvency
IREN has an Altman-Z score of 6.73. This indicates that IREN is financially healthy and has little risk of bankruptcy at the moment.
IREN has a better Altman-Z score (6.73) than 81.16% of its industry peers.
IREN has a Debt/Equity ratio of 0.53. This is a neutral value indicating IREN is somewhat dependend on debt financing.
IREN's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. IREN is outperformed by 66.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.73 |
ROIC/WACC0.03
WACC11.1%
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.
Looking at the Current ratio, with a value of 4.29, IREN belongs to the top of the industry, outperforming 84.06% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 4.29, IREN belongs to the top of the industry, outperforming 84.06% 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 494.72% over the past year.
IREN shows a strong growth in Revenue. In the last year, the Revenue has grown by 229.07%.
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
IREN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 61.66% yearly.
Based on estimates for the next years, IREN will show a very strong growth in Revenue. The Revenue will grow by 53.20% on average per year.
EPS Next Y58.93%
EPS Next 2Y2.99%
EPS Next 3Y61.66%
EPS Next 5YN/A
Revenue Next Year130.49%
Revenue Next 2Y126.37%
Revenue Next 3Y86.36%
Revenue Next 5Y53.2%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.01, which indicates a rather expensive current valuation of IREN.
Based on the Price/Earnings ratio, IREN is valued a bit cheaper than 71.38% of the companies in the same industry.
IREN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 62.71, the valuation of IREN can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as IREN.
IREN is valuated expensively when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 62.71 |
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 61.66% in the coming years.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y2.99%
EPS Next 3Y61.66%
5. Dividend
5.1 Amount
No dividends for IREN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
42.7
+4.93 (+13.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners52.65%
Inst Owner ChangeN/A
Ins Owners4.1%
Ins Owner Change0%
Market Cap12.32B
Revenue(TTM)686.93M
Net Income(TTM)86.94M
Analysts78
Price Target78.62 (84.12%)
Short Float %18.38%
Short Ratio1.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1
Avg EPS beat(2)148.6%
Min EPS beat(2)-22.73%
Max EPS beat(2)319.92%
EPS beat(4)2
Avg EPS beat(4)118.74%
Min EPS beat(4)-187.16%
Max EPS beat(4)364.93%
EPS beat(8)3
Avg EPS beat(8)-326.81%
EPS beat(12)5
Avg EPS beat(12)-260.54%
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)-0.65%
PT rev (3m)89.84%
EPS NQ rev (1m)-0.69%
EPS NQ rev (3m)-18.32%
EPS NY rev (1m)15.54%
EPS NY rev (3m)2.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.12%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 62.71 | ||
| P/S | 24.6 | ||
| P/FCF | N/A | ||
| P/OCF | 50.12 | ||
| P/B | 6.78 | ||
| P/tB | 6.78 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.94
EY4.54%
EPS(NY)0.68
Fwd EY1.59%
FCF(TTM)-1.13
FCFYN/A
OCF(TTM)0.85
OCFY2%
SpS1.74
BVpS6.3
TBVpS6.3
PEG (NY)0.37
PEG (5Y)N/A
Graham Number16.58
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 | 6.73 |
F-Score6
WACC11.1%
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)494.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%590.91%
EPS Next Y58.93%
EPS Next 2Y2.99%
EPS Next 3Y61.66%
EPS Next 5YN/A
Revenue 1Y (TTM)229.07%
Revenue growth 3Y103.98%
Revenue growth 5Y196.84%
Sales Q2Q%341.8%
Revenue Next Year130.49%
Revenue Next 2Y126.37%
Revenue Next 3Y86.36%
Revenue Next 5Y53.2%
EBIT growth 1Y197.2%
EBIT growth 3Y132.63%
EBIT growth 5YN/A
EBIT Next Year981.57%
EBIT Next 3Y265.48%
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 of IREN LTD (IREN) stock?
ChartMill assigns a valuation rating of 3 / 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 4 / 10.
Can you provide the expected EPS growth for IREN stock?
The Earnings per Share (EPS) of IREN LTD (IREN) is expected to grow by 58.93% in the next year.