Circle Internet Group
Circle Internet Group Fundamental Analysis
Circle Internet Group (CRCL) shows moderate financial fundamentals with a PE ratio of -73.39, profit margin of -8.28%, and ROE of -8.23%. The company generates $2.6B in annual revenue with strong year-over-year growth of 15.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CRCL's fundamental strength across five key dimensions:
Efficiency Score
WeakCRCL struggles to generate sufficient returns from assets.
Valuation Score
ModerateCRCL shows balanced valuation metrics.
Growth Score
ModerateCRCL shows steady but slowing expansion.
Financial Health Score
ExcellentCRCL maintains a strong and stable balance sheet.
Profitability Score
WeakCRCL struggles to sustain strong margins.
Key Financial Metrics
Is CRCL Expensive or Cheap?
P/E Ratio
CRCL trades at -73.39 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CRCL's PEG of 3.86 indicates potential overvaluation.
Price to Book
The market values Circle Internet Group at 4.85 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -102.76 times EBITDA. This is generally considered low.
How Well Does CRCL Make Money?
Net Profit Margin
For every $100 in sales, Circle Internet Group keeps $-8.28 as profit after all expenses.
Operating Margin
Core operations generate -6.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-8.23 in profit for every $100 of shareholder equity.
ROA
Circle Internet Group generates $-0.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Circle Internet Group produces operating cash flow of $318.36M, showing steady but balanced cash generation.
Free Cash Flow
Circle Internet Group generates strong free cash flow of $301.36M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.18 in free cash annually.
FCF Yield
CRCL converts 1.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-73.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.08
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
-0.05
vs 25 benchmark
How CRCL Stacks Against Its Sector Peers
| Metric | CRCL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -73.39 | 18.86 | Better (Cheaper) |
| ROE | -8.23% | 847.00% | Weak |
| Net Margin | -8.28% | 4202.00% | Weak |
| Debt/Equity | 0.05 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 1.03 | 667.17 | Neutral |
| ROA | -0.26% | -21543.00% (disorted) | Weak |
CRCL outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Circle Internet Group's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
0.00%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
0.00%
Industry Style: Value, Dividend, Cyclical
Declining