Bitfarms (TSX:BITF) - Share price, News & Analysis

BITF fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

BITF Stock Overview

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in North America.

Rewards

Price-To-Earnings ratio (10x) is below the Canadian market (11.5x)

Became profitable this year

Risk Analysis

High level of non-cash earnings

Shareholders have been diluted in the past year

Bitfarms Competitors

Hut 8 Mining

TSX:HUT

CA$497.4m

HIVE Blockchain Technologies

TSXV:HIVE

CA$387.4m

DMG Blockchain Solutions

TSXV:DMGI

CA$61.0m

Digihost Technology

TSXV:DGHI

CA$56.1m

Price History & Performance

Summary of all time highs, changes and price drops for Bitfarms
Historical stock prices
Current Share Price	CA$2.16
52 Week High	CA$11.60
52 Week Low	CA$2.10
Beta	2.08
1 Month Change	-42.71%
3 Month Change	-50.35%
1 Year Change	-60.66%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-1.82%

Recent News & Updates

Apr 25

Is There Now An Opportunity In Bitfarms Ltd. (TSE:BITF)?

Bitfarms Ltd. ( TSE:BITF ), might not be a large cap stock, but it saw significant share price movement during recent...

Shareholder Returns

	BITF	CA Software	CA Market
7D	-11.8%	0.2%	1.7%
1Y	-60.7%	-21.7%	4.7%

Return vs Industry: BITF underperformed the Canadian Software industry which returned -20.6% over the past year.

Return vs Market: BITF underperformed the Canadian Market which returned 5.2% over the past year.

Price Volatility

Is BITF's price volatile compared to industry and market?
BITF volatility
BITF Average Weekly Movement	13.2%
Software Industry Average Movement	12.1%
Market Average Movement	9.9%
10% most volatile stocks in CA Market	17.0%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: BITF is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: BITF's weekly volatility (13%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2017	106	Emi Grodzki	https://www.bitfarms.com

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in North America. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada.

Bitfarms Fundamentals Summary

How do Bitfarms's earnings and revenue compare to its market cap?
BITF fundamental statistics
Market Cap	US$341.90m
Earnings (TTM)	US$34.25m
Revenue (TTM)	US$181.39m

10.0x

P/E Ratio

1.9x

P/S Ratio

Is BITF overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BITF income statement (TTM)
Revenue	US$181.39m
Cost of Revenue	US$72.54m
Gross Profit	US$108.85m
Other Expenses	US$74.59m
Earnings	US$34.25m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.17
Gross Margin	60.01%
Net Profit Margin	18.88%
Debt/Equity Ratio	30.1%

How did BITF perform over the long term?

See historical performance and comparison

Valuation

Is Bitfarms undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

9.98x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate BITF's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate BITF's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: BITF is good value based on its Price-To-Earnings Ratio (10x) compared to the Canadian Software industry average (44.8x).

PE vs Market: BITF is good value based on its Price-To-Earnings Ratio (10x) compared to the Canadian market (11.5x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BITF's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: BITF is good value based on its Price-To-Book Ratio (0.7x) compared to the CA Software industry average (2.3x).

Future Growth

How is Bitfarms forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

27.9%

Forecasted Software industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Bitfarms has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Bitfarms performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

12.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BITF has a high level of non-cash earnings.

Growing Profit Margin: BITF became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: BITF has become profitable over the past 5 years, growing earnings by 12.1% per year.

Accelerating Growth: BITF has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BITF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (-9.1%).

Return on Equity

High ROE: BITF's Return on Equity (7.5%) is considered low.

Financial Health

How is Bitfarms's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BITF's short term assets ($323.8M) exceed its short term liabilities ($142.8M).

Long Term Liabilities: BITF's short term assets ($323.8M) exceed its long term liabilities ($36.5M).

Debt to Equity History and Analysis

Debt Level: BITF's net debt to equity ratio (13.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if BITF's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: BITF's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: BITF's interest payments on its debt are well covered by EBIT (9.9x coverage).

Balance Sheet

Dividend

What is Bitfarms's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate BITF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BITF's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BITF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BITF's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BITF has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure

CEO

Emi Grodzki (45 yo)

2.17yrs

Tenure

US$6,758,998

Compensation

Mr. Emiliano Joel Grodzki, also known as Emi, has been the Chief Strategy Officer at Blockchain Mining Limited since March 7, 2018 and has also been its Director since February 19, 2018. Mr. Grodzki is a F...

CEO Compensation Analysis

Compensation vs Market: Emi's total compensation ($USD6.76M) is above average for companies of similar size in the Canadian market ($USD1.08M).

Compensation vs Earnings: Emi's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: BITF's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: BITF's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 27.6%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31