TSX:HUT

Stock Analysis Report

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Market Cap

CA$690.6m

Last Updated

2021/06/13 23:41 UTC

Data Sources

Company Financials +

Share Price & News

How has Hut 8 Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HUT is more volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: HUT's weekly volatility has decreased from 22% to 15% over the past year, but is still higher than 75% of Canadian stocks.


Market Performance


7 Day Return

3.4%

HUT

1.4%

CA Software

0.4%

CA Market


1 Year Return

252.1%

HUT

43.9%

CA Software

37.2%

CA Market

Return vs Industry: HUT exceeded the Canadian Software industry which returned 43.9% over the past year.

Return vs Market: HUT exceeded the Canadian Market which returned 37.2% over the past year.


Shareholder returns

HUTIndustryMarket
7 Day3.4%1.4%0.4%
30 Day-11.8%10.1%3.4%
90 Day-55.5%-0.4%5.5%
1 Year252.1%252.1%50.2%43.9%41.6%37.2%
3 Year51.7%51.7%67.2%57.6%32.5%20.0%
5 Yearn/a204.8%185.7%62.7%38.3%

Long-Term Price Volatility Vs. Market

How volatile is Hut 8 Mining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hut 8 Mining undervalued compared to its fair value and its price relative to the market?

7.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate HUT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate HUT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: HUT is good value based on its PE Ratio (7.6x) compared to the Canadian Software industry average (39.5x).

PE vs Market: HUT is good value based on its PE Ratio (7.6x) compared to the Canadian market (15.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HUT is good value based on its PB Ratio (1.8x) compared to the CA Software industry average (6.8x).


Future Growth

How is Hut 8 Mining forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

48.2%

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 Hut 8 Mining 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 Hut 8 Mining performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: HUT's current net profit margins are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: HUT has become profitable over the past 5 years, growing earnings by 8.9% per year.

Accelerating Growth: HUT's earnings growth over the past year (4488.8%) exceeds its 5-year average (8.9% per year).

Earnings vs Industry: HUT earnings growth over the past year (4488.8%) exceeded the Software industry 33.7%.


Return on Equity

High ROE: HUT's Return on Equity (20.5%) is considered high.


Financial Health

How is Hut 8 Mining's financial position?


Financial Position Analysis

Short Term Liabilities: HUT's short term assets (CA$284.8M) exceed its short term liabilities (CA$8.6M).

Long Term Liabilities: HUT's short term assets (CA$284.8M) exceed its long term liabilities (CA$14.4M).


Debt to Equity History and Analysis

Debt Level: HUT's debt to equity ratio (0.2%) is considered satisfactory.

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

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

Interest Coverage: HUT's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Dividend

What is Hut 8 Mining current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate HUT'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 HUT's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HUT's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Jaime Leverton

0.50

Tenure

CA$375,000

Compensation

Ms. Jaime Leverton serves as the Chief Executive Officer at Hut 8 Mining Corp. since December 01, 2020 and Director since December 30, 2020. She is a highly accomplished technology executive and industry t...


CEO Compensation Analysis

Compensation vs Market: Jaime's total compensation ($USD308.41K) is below average for companies of similar size in the Canadian market ($USD814.21K).

Compensation vs Earnings: Insufficient data to compare Jaime's compensation with company performance.


Leadership Team

Experienced Management: HUT's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: HUT's board of directors are not considered experienced ( 1.9 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 substantially diluted in the past year, with total shares outstanding growing by 54%.


Top Shareholders

Company Information

Hut 8 Mining Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hut 8 Mining Corp.
  • Ticker: HUT
  • Exchange: TSX
  • Founded: NaN
  • Industry: Application Software
  • Sector: Software
  • Market Cap: CA$690.596m
  • Shares outstanding: 140.08m
  • Website: https://hut8mining.com

Number of Employees


Location

  • Hut 8 Mining Corp.
  • 130 King Street West
  • Suite 1800
  • Toronto
  • Ontario
  • M5X 2A2
  • Canada

Listings


Biography

Hut 8 Mining Corp. operates as a cryptocurrency mining company in Canada. The company engages in industrial scale bitcoin mining operations. It also owns and operates 38 BlockBoxes in Drumheller, Alberta; ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 23:41
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.