TSX:HUT

Stock Analysis Report

Executive Summary

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

Risk Analysis

Earnings have declined by -80.71% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Mediocre balance sheet and overvalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-24.4%

HUT

-0.3%

CA IT

0.2%

CA Market


1 Year Return

26.8%

HUT

15.0%

CA IT

4.9%

CA Market

Return vs Industry: HUT exceeded the Canadian IT industry which returned 16.1% over the past year.

Return vs Market: HUT exceeded the Canadian Market which returned 5.8% over the past year.


Shareholder returns

HUTIndustryMarket
7 Day-24.4%-0.3%0.2%
30 Day-1.2%-9.5%0.4%
90 Day1.3%-5.7%3.7%
1 Year26.8%26.8%15.0%15.0%8.2%4.9%
3 Yearn/a56.8%56.7%15.9%5.5%
5 Yearn/a88.6%88.2%33.8%14.3%

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?

2.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HUT (CA$1.81) is trading above our estimate of fair value (CA$1.48)

Significantly Below Fair Value: HUT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HUT is unprofitable, so we can't compare its PE Ratio to the IT 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 (2.5x) compared to the CA IT industry average (3x).


Next Steps

Future Growth

How is Hut 8 Mining forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.3%

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.


Next Steps

Past Performance

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

-80.7%

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 -80.7% 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 IT industry (12%).


Return on Equity

High ROE: HUT has a negative Return on Equity (-137.42%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hut 8 Mining's financial position?


Financial Position Analysis

Short Term Liabilities: HUT's short term assets (CA$13.1M) exceed its short term liabilities (CA$7.7M).

Long Term Liabilities: HUT's short term assets (CA$13.1M) do not cover its long term liabilities (CA$22.5M).


Debt to Equity History and Analysis

Debt Level: HUT's debt to equity ratio (40.1%) 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

Inventory Level: HUT has a high level of physical assets or inventory.

Debt Coverage by Assets: HUT's debt is not covered by short term assets (assets are 0.5x debt).


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: Whilst unprofitable HUT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: HUT is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -40.6% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

1.7yrs

Average management tenure


CEO

Andrew Kiguel 0

1.8yrs

Tenure

CA$2,986,518

Compensation

Mr. Andrew Kiguel has been President, Chief Executive Officer and a Director of Hut 8 Mining Corp. since April 2, 2018. Mr. Kiguel joins Hut 8 from GMP Securities L.P., where he played an integral role for ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD2.26M) is above average for companies of similar size in the Canadian market ($USD155.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Kiguel
President1.8yrsCA$2.99m0.75% CA$1.1m
Demetrios Vaiopoulos
Chief Financial Officer1.6yrsCA$164.53k0.033% CA$48.5k
Sean Clark
1.9yrsCA$62.50kno data
George Aizpurua
VP of Communications0yrsno datano data
Etienne Snyman
Head of Power1.7yrsno datano data
Kyle Appleby
Corporate Secretary0.3yrsCA$48.00kno data

1.7yrs

Average Tenure

Experienced Management: HUT's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andrew Kiguel
President1.8yrsCA$2.99m0.75% CA$1.1m
William Tai
Chairman2.1yrsCA$41.64k0.81% CA$1.2m
Geraldine Sinclair
Independent Director2.1yrsCA$248.63k0.019% CA$27.4k
Dennis Mills
Independent Director2.1yrsCA$248.63kno data
Jeremy Sewell
Director0.6yrsno datano data
Joseph Flinn
Independent Director1.5yrsCA$97.32kno data

2.0yrs

Average Tenure

71yo

Average Age

Experienced Board: HUT's board of directors are not considered experienced ( 2 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 25.1%.


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: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: CA$145.605m
  • Shares outstanding: 90.44m
  • Website: https://www.hut8mining.com

Location

  • Hut 8 Mining Corp.
  • 130 King Street West
  • Suite 1800
  • Toronto
  • Ontario
  • M5X 1E3
  • 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 nine Blockbox AC data centers. The company is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 02:19
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.