Hut 8 Corp.
Hut 8 Corp. Fundamental Analysis
Hut 8 Corp. (HUT) shows moderate financial fundamentals with a PE ratio of 27.47, profit margin of 42.40%, and ROE of 15.84%. The company generates $0.5B 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 46.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HUT's fundamental strength across five key dimensions:
Efficiency Score
WeakHUT struggles to generate sufficient returns from assets.
Valuation Score
ModerateHUT shows balanced valuation metrics.
Growth Score
ModerateHUT shows steady but slowing expansion.
Financial Health Score
ModerateHUT shows balanced financial health with some risks.
Profitability Score
ModerateHUT maintains healthy but balanced margins.
Key Financial Metrics
Is HUT Expensive or Cheap?
P/E Ratio
HUT trades at 27.47 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HUT's PEG of 0.42 indicates potential undervaluation.
Price to Book
The market values Hut 8 Corp. at 2.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.85 times EBITDA. This signals the market has high growth expectations.
How Well Does HUT Make Money?
Net Profit Margin
For every $100 in sales, Hut 8 Corp. keeps $42.40 as profit after all expenses.
Operating Margin
Core operations generate 81.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.84 in profit for every $100 of shareholder equity.
ROA
Hut 8 Corp. generates $5.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hut 8 Corp. generates limited operating cash flow of $-105.62M, signaling weaker underlying cash strength.
Free Cash Flow
Hut 8 Corp. generates weak or negative free cash flow of $-911.24M, restricting financial flexibility.
FCF Per Share
Each share generates $-8.43 in free cash annually.
FCF Yield
HUT converts -15.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How HUT Stacks Against Its Sector Peers
| Metric | HUT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.47 | 18.73 | Worse (Expensive) |
| ROE | 15.84% | 847.00% | Weak |
| Net Margin | 42.40% | 3919.00% | Weak |
| Debt/Equity | 0.27 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.72 | 674.76 | Weak Liquidity |
| ROA | 5.51% | -21563.00% (disorted) | Weak |
HUT outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hut 8 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