Argo Blockchain (LSE:ARB) - Share price, News & Analysis

ARB fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	5/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

ARB Stock Overview

Argo Blockchain plc, together with its subsidiaries, engages in the bitcoin and other cryptocurrencies mining business worldwide.

Rewards

Trading at 88.5% below our estimate of its fair value

Earnings are forecast to grow 52.61% per year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over the past 3 months

Profit margins (17.3%) are lower than last year (75.8%)

Shareholders have been diluted in the past year

Argo Blockchain Competitors

Grayscale Bitcoin Trust (BTC)

OTCPK:GBTC

US$5.5b

SBI Holdings

TSE:8473

JP¥643.0b

GMO Internet

TSE:9449

JP¥270.5b

Galaxy Digital Holdings

TSX:GLXY

CA$2.6b

Price History & Performance

Summary of all time highs, changes and price drops for Argo Blockchain
Historical stock prices
Current Share Price	UK£0.45
52 Week High	UK£1.75
52 Week Low	UK£0.42
Beta	2.91
1 Month Change	-31.82%
3 Month Change	-26.23%
1 Year Change	-69.39%
3 Year Change	703.57%
5 Year Change	n/a
Change since IPO	260.00%

Recent News & Updates

May 21

Why We're Not Concerned Yet About Argo Blockchain plc's (LON:ARB) 27% Share Price Plunge

The Argo Blockchain plc ( LON:ARB ) share price has fared very poorly over the last month, falling by a substantial...

May 10

Is Now The Time To Put Argo Blockchain (LON:ARB) On Your Watchlist?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

	ARB	GB Software	GB Market
7D	-6.3%	-1.4%	-0.4%
1Y	-69.4%	-17.7%	-3.0%

Return vs Industry: ARB underperformed the UK Software industry which returned -17.7% over the past year.

Return vs Market: ARB underperformed the UK Market which returned -3% over the past year.

Price Volatility

Is ARB's price volatile compared to industry and market?
ARB volatility
ARB Average Weekly Movement	13.2%
Software Industry Average Movement	6.2%
Market Average Movement	6.0%
10% most volatile stocks in GB Market	11.6%
10% least volatile stocks in GB Market	3.1%

Stable Share Price: ARB is more volatile than 90% of UK stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: ARB's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

Founded	Employees	CEO	Website
2017	43	Peter Wall	https://www.argoblockchain.com

Argo Blockchain plc, together with its subsidiaries, engages in the bitcoin and other cryptocurrencies mining business worldwide. It engages in mining purpose-built computers for cryptographic algorithms. The company was formerly known as GoSun Blockchain Limited and changed its name to Argo Blockchain plc in December 2017.

Argo Blockchain Fundamentals Summary

How do Argo Blockchain's earnings and revenue compare to its market cap?
ARB fundamental statistics
Market Cap	UK£212.98m
Earnings (TTM)	UK£13.07m
Revenue (TTM)	UK£75.48m

16.1x

P/E Ratio

2.8x

P/S Ratio

Is ARB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARB income statement (TTM)
Revenue	UK£75.48m
Cost of Revenue	UK£13.55m
Gross Profit	UK£61.94m
Other Expenses	UK£48.87m
Earnings	UK£13.07m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.028
Gross Margin	82.06%
Net Profit Margin	17.32%
Debt/Equity Ratio	45.0%

How did ARB perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ARB (£0.45) is trading below our estimate of fair value (£3.91)

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

Price To Earnings Ratio

PE vs Industry: ARB is good value based on its Price-To-Earnings Ratio (16.1x) compared to the UK Software industry average (41.7x).

PE vs Market: ARB is poor value based on its Price-To-Earnings Ratio (16.1x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: ARB is good value based on its PEG Ratio (0.3x)

Price to Book Ratio

PB vs Industry: ARB is good value based on its Price-To-Book Ratio (1.1x) compared to the GB Software industry average (2.7x).

Future Growth

How is Argo Blockchain forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

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

52.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARB's forecast earnings growth (52.6% per year) is above the savings rate (0.9%).

Earnings vs Market: ARB's earnings (52.6% per year) are forecast to grow faster than the UK market (11.3% per year).

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

Revenue vs Market: ARB's revenue (51.4% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: ARB's revenue (51.4% 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 ARB's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Argo Blockchain 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

103.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ARB has high quality earnings.

Growing Profit Margin: ARB's current net profit margins (17.3%) are lower than last year (75.8%).

Past Earnings Growth Analysis

Earnings Trend: ARB's earnings have grown significantly by 103.6% per year over the past 5 years.

Accelerating Growth: ARB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ARB had negative earnings growth (-36.1%) over the past year, making it difficult to compare to the Software industry average (-13.7%).

Return on Equity

High ROE: ARB's Return on Equity (6.6%) is considered low.

Financial Health

How is Argo Blockchain's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: ARB's short term assets (£173.8M) exceed its short term liabilities (£72.7M).

Long Term Liabilities: ARB's short term assets (£173.8M) exceed its long term liabilities (£45.5M).

Debt to Equity History and Analysis

Debt Level: ARB's net debt to equity ratio (40.4%) is considered high.

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

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

Interest Coverage: ARB's interest payments on its debt are well covered by EBIT (5.5x coverage).

Balance Sheet

Dividend

What is Argo Blockchain 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 ARB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

Growing Dividend: Insufficient data to determine if ARB'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 ARB has not reported any payouts.

Discover strong dividend paying companies

Management

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

0.7yrs

Average management tenure

CEO

Peter Wall (45 yo)

2.33yrs

Tenure

UK£4,054,177

Compensation

Mr. Peter G. Wall serves as Member of Blockchain Advisory Board at Nft Investments Plc since August 2021. He serves as Chief Executive Officer and Director at Argo Blockchain plc since January 01, 2020 and...

CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD5.09M) is above average for companies of similar size in the UK market ($USD679.19K).

Compensation vs Earnings: Peter's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: ARB's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.

Board Members

Experienced Board: ARB's board of directors are not considered experienced ( 0.8 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 22.6%.

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