Hut 8 Mining Corp.
Hut 8 Mining Corp. Fundamental Analysis
Hut 8 Mining Corp. (HUT.TO) shows moderate financial fundamentals with a PE ratio of -22.24, profit margin of -1.85%, and ROE of -16.27%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 7.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -130.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HUT.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakHUT.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHUT.TO trades at attractive valuation levels.
Growth Score
ModerateHUT.TO shows steady but slowing expansion.
Financial Health Score
ExcellentHUT.TO maintains a strong and stable balance sheet.
Profitability Score
WeakHUT.TO struggles to sustain strong margins.
Key Financial Metrics
Is HUT.TO Expensive or Cheap?
P/E Ratio
HUT.TO trades at -22.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HUT.TO's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values Hut 8 Mining Corp. at 3.60 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.39 times EBITDA. This signals the market has high growth expectations.
How Well Does HUT.TO Make Money?
Net Profit Margin
For every $100 in sales, Hut 8 Mining Corp. keeps $-1.85 as profit after all expenses.
Operating Margin
Core operations generate 66.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-16.27 in profit for every $100 of shareholder equity.
ROA
Hut 8 Mining Corp. generates $-7.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hut 8 Mining Corp. generates limited operating cash flow of $-140.53M, signaling weaker underlying cash strength.
Free Cash Flow
Hut 8 Mining Corp. generates weak or negative free cash flow of $-360.29M, restricting financial flexibility.
FCF Per Share
Each share generates $-3.25 in free cash annually.
FCF Yield
HUT.TO converts -6.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-22.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
41.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.16
vs 25 benchmark
ROA
Return on assets percentage
-0.08
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How HUT.TO Stacks Against Its Sector Peers
| Metric | HUT.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -22.24 | 18.66 | Better (Cheaper) |
| ROE | -16.27% | 804.00% | Weak |
| Net Margin | -185.31% | 2258.00% | Weak |
| Debt/Equity | 0.31 | 1.03 | Strong (Low Leverage) |
| Current Ratio | 1.09 | 662.03 | Neutral |
| ROA | -7.63% | -24049.00% (disorted) | Weak |
HUT.TO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hut 8 Mining Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.66%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
2821.55%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-188.60%
Industry Style: Value, Dividend, Cyclical
Declining