TSX:HUT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Hut 8 Mining Corp. operates as a cryptocurrency mining company in Canada. More Details


Snowflake Analysis

Fair value with limited growth.


Similar Companies

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 not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: HUT's weekly volatility has decreased from 20% to 11% over the past year.


Market Performance


7 Day Return

20.3%

HUT

7.5%

CA Software

0.7%

CA Market


1 Year Return

0.7%

HUT

29.1%

CA Software

-2.0%

CA Market

Return vs Industry: HUT underperformed the Canadian Software industry which returned 30% over the past year.

Return vs Market: HUT underperformed the Canadian Market which returned -1.8% over the past year.


Shareholder returns

HUTIndustryMarket
7 Day20.3%7.5%0.7%
30 Day27.9%7.4%5.3%
90 Day36.5%7.2%4.0%
1 Year0.7%0.7%29.5%29.1%1.6%-2.0%
3 Yearn/a60.7%57.4%10.2%-0.5%
5 Yearn/a131.4%123.6%44.5%22.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HUT (CA$1.27) is trading below our estimate of fair value (CA$6.44)

Significantly Below Fair Value: HUT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HUT is unprofitable, so we can't compare its PE Ratio to the CA Software industry average.

PE vs Market: HUT is unprofitable, so we can't compare its PE Ratio to the Canadian market.


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 (3x) compared to the CA Software industry average (4.9x).


Next Steps

Future Growth

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

23.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if HUT's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if HUT's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HUT's revenue (23.8% per year) is forecast to grow faster than the Canadian market (6.1% per year).

High Growth Revenue: HUT's revenue (23.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HUT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-22.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HUT is currently unprofitable.

Growing Profit Margin: HUT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HUT is unprofitable, and losses have increased over the past 5 years at a rate of 22.9% per year.

Accelerating Growth: Unable to compare HUT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HUT is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (30%).


Return on Equity

High ROE: HUT has a negative Return on Equity (-52.75%), as it is currently unprofitable.


Next Steps

Financial Health

How is Hut 8 Mining's financial position?


Financial Position Analysis

Short Term Liabilities: HUT's short term assets (CA$46.5M) exceed its short term liabilities (CA$31.1M).

Long Term Liabilities: HUT has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: HUT's debt to equity ratio (64.2%) is considered high.

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


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HUT has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if HUT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

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?

0.8yrs

Average management tenure


CEO

Jimmy Vaiopoulos

0.83

Tenure

CA$164,531

Compensation

Mr. Demetrios Vaiopoulos, also known as Jimmy, CPA, CA, has been Interim Chief Executive Officer of Hut 8 Mining Corp. since 2020 and served as its Chief Financial Officer since June 21, 2018 until 2020 an...


CEO Compensation Analysis

Compensation vs Market: Jimmy's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD165.33K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Demetrios Vaiopoulos
Interim Chief Executive Officer0.83yrCA$164.53k0.031%
CA$ 38.2k
Sean Clark
2.67yrsCA$62.50kno data
Kyle Appleby
Interim Chief Financial Officer0.50yrCA$48.00k0.010%
CA$ 12.7k
George Aizpurua
VP of Communicationsno datano datano data
Etienne Snyman
Head of Power2.42yrsno datano data
Viktoriya Griffin
Corporate Secretary0.50yrno datano data

0.8yrs

Average Tenure

Experienced Management: HUT's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Tai
Chairman of the Board2.83yrsCA$41.64k0.75%
CA$ 926.2k
Dennis Mills
Independent Director2.67yrsCA$248.63kno data
Marc Van der Chijs
Directorno datano datano data
Jeremy Sewell
Director1.33yrsno datano data
Joseph Flinn
Independent Director2.25yrsCA$97.32k0.0081%
CA$ 9.9k

2.5yrs

Average Tenure

Experienced Board: HUT's board of directors are not considered experienced ( 2.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7%.


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:
  • Industry: Application Software
  • Sector: Software
  • Market Cap: CA$122.850m
  • Shares outstanding: 96.73m
  • Website: https://www.hut8mining.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HUTTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2018
HUTM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2018
1YTDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2018

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 BlockBox AC data centers in Drumhel...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 01:03
End of Day Share Price2020/11/23 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.