Last Updated: 16 Sep 2024
Executive Summary
Iris Energy Ltd (IREN) is a publicly traded company in the technology sector. The company operates data centers that provide high-performance computing services to customers in the blockchain industry. As of the latest available data, IREN has a market capitalization of $1.43 billion, with 189.35 million shares outstanding.
Company Overview
Iris Energy was founded in 2016 and is headquartered in Sydney, Australia. The company operates data centers in Canada, the United States, and China. IREN's primary business is providing computing power to customers who mine cryptocurrencies, such as Bitcoin and Ethereum.
Fundamental Analysis
Financial Performance:
Revenue for the trailing twelve months (TTM) was $188.8 million, a 67.9% increase year-over-year.
Gross profit for the TTM was $57.6 million, with a gross margin of 30.5%.
Net loss for the TTM was $83.9 million, resulting in a loss per share of $0.29.
The company has a negative EBITDA of $23.3 million and negative profit margins.
Valuation:
Price-to-Sales (P/S) ratio of 7.58x
Price-to-Book (P/B) ratio of 1.30x
Forward Price-to-Earnings (P/E) ratio of 27.03x
Technical Analysis
The stock price is currently trading at $7.56, within its 52-week range of $2.79 to $15.75.
The 50-day moving average is $9.12, and the 200-day moving average is $7.22.
The relative strength index (RSI) is at 48.5, indicating neutral momentum.
Short Term Outlook
The short-term outlook for IREN is mixed. The company is facing headwinds from the recent decline in cryptocurrency prices, which could impact its revenue and profitability. However, the company has a strong balance sheet and is expanding its operations into new markets.
Long Term Outlook
The long-term outlook for IREN is positive. The demand for high-performance computing services is expected to grow in the coming years, driven by the increasing adoption of blockchain technology and artificial intelligence. IREN is well-positioned to capitalize on this growth with its state-of-the-art data centers and experienced management team.
Analyst Recommendations
Analysts have a mixed view on IREN. Two analysts rate the stock as Strong Buy, six rate it as Buy, and none rate it as Hold, Sell, or Strong Sell. The average analyst target price is $17.21, representing a potential upside of 127.5% from the current price.
