Coinbase Global, Inc. Fundamental Analysis (NASDAQ: COIN)
Coinbase Global, Inc. Fundamental Analysis (NASDAQ: COIN)
Coinbase Global, Inc. (NASDAQ: COIN) shows moderate financial fundamentals with a PE ratio of -39.76, profit margin of -17.85%, and ROE of -6.89%. The company generates $5.5B in annual revenue with moderate year-over-year growth of 9.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze COIN's fundamental strength across five key dimensions:
Efficiency Score
WeakCOIN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCOIN trades at attractive valuation levels.
Growth Score
ModerateCOIN shows steady but slowing expansion.
Financial Health Score
ExcellentCOIN maintains a strong and stable balance sheet.
Profitability Score
WeakCOIN struggles to sustain strong margins.
Key Financial Metrics
Is COIN Expensive or Cheap?
P/E Ratio
COIN trades at -39.76 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, COIN's PEG of 0.30 indicates potential undervaluation.
Price to Book
The market values Coinbase Global, Inc. at 2.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -60.29 times EBITDA. This is generally considered low.
How Well Does COIN Make Money?
Net Profit Margin
For every $100 in sales, Coinbase Global, Inc. keeps $-17.85 as profit after all expenses.
Operating Margin
Core operations generate -0.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-6.89 in profit for every $100 of shareholder equity.
ROA
Coinbase Global, Inc. generates $-3.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Coinbase Global, Inc. generates strong operating cash flow of $2.66B, reflecting robust business health.
Free Cash Flow
Coinbase Global, Inc. generates strong free cash flow of $2.66B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.10 in free cash annually.
FCF Yield
COIN converts 6.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-39.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.07
vs 25 benchmark
ROA
Return on assets percentage
-0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How COIN Stacks Against Its Sector Peers
| Metric | COIN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -39.76 | 21.17 | Better (Cheaper) |
| ROE | -6.89% | 668.00% | Weak |
| Net Margin | -17.85% | 876.00% | Weak |
| Debt/Equity | 0.51 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.54 | 905.28 | Neutral |
| ROA | -3.73% | 4787782.00% | Weak |
COIN outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Coinbase Global, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
301.99%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
179.61%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-42.24%
Industry Style: Value, Dividend, Cyclical
Declining