IREN Limited
IREN Limited Fundamental Analysis
IREN Limited (IREN) shows moderate financial fundamentals with a PE ratio of 22.57, profit margin of 57.73%, and ROE of 18.65%. The company generates $1.1B in annual revenue with weak year-over-year growth of 1.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IREN's fundamental strength across five key dimensions:
Efficiency Score
WeakIREN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIREN trades at attractive valuation levels.
Growth Score
WeakIREN faces weak or negative growth trends.
Financial Health Score
ModerateIREN shows balanced financial health with some risks.
Profitability Score
ModerateIREN maintains healthy but balanced margins.
Key Financial Metrics
Is IREN Expensive or Cheap?
P/E Ratio
IREN trades at 22.57 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IREN's PEG of -0.76 indicates potential undervaluation.
Price to Book
The market values IREN Limited at 3.62 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.80 times EBITDA. This signals the market has high growth expectations.
How Well Does IREN Make Money?
Net Profit Margin
For every $100 in sales, IREN Limited keeps $57.73 as profit after all expenses.
Operating Margin
Core operations generate -12.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.65 in profit for every $100 of shareholder equity.
ROA
IREN Limited generates $5.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IREN Limited generates strong operating cash flow of $865.00M, reflecting robust business health.
Free Cash Flow
IREN Limited generates weak or negative free cash flow of $-397.52M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.20 in free cash annually.
FCF Yield
IREN converts -1.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
19.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How IREN Stacks Against Its Sector Peers
| Metric | IREN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.57 | 18.73 | Worse (Expensive) |
| ROE | 18.65% | 847.00% | Weak |
| Net Margin | 57.73% | 2562.00% | Weak |
| Debt/Equity | 1.53 | 0.93 | Weak (High Leverage) |
| Current Ratio | 4.96 | 674.76 | Strong Liquidity |
| ROA | 5.73% | -21692.00% (disorted) | Weak |
IREN 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 IREN Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5810.75%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
1141.00%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
6489.42%
Industry Style: Value, Dividend, Cyclical
High Growth