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IREN

Iris Energy NasdaqGS:IREN Stock Report

Last Price

US$3.42

Market Cap

US$181.4m

7D

-8.6%

1Y

n/a

Updated

27 Jun, 2022

Data

Company Financials +
IREN fundamental analysis
Snowflake Score
Valuation5/6
Future Growth6/6
Past Performance0/6
Financial Health3/6
Dividends0/6

IREN Stock Overview

Iris Energy Limited operates as a bitcoin mining company.

Iris Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Iris Energy
Historical stock prices
Current Share PriceUS$3.42
52 Week HighUS$28.25
52 Week LowUS$2.89
Beta0
1 Month Change-40.73%
3 Month Change-78.09%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-86.01%

Recent News & Updates

Jun 23

Buy Iris Energy, Get Bitcoin Mining For Free

IREN is a pure-play sustainable Bitcoin mining company that owns at least 84% of land and grid-connected power facilities to provide it with the flexibility to host other data centers. IREN's valuation suggests investors are buying into IREN's hard assets (property, facilities, and cash) and are getting its Bitcoin mining business for free. Although we currently find IREN to be fairly valued, IREN provides more upside if investors are willing to undertake more risks. We find that IREN is investable below $2.90 under the assumption that IREN stops mining Bitcoin if unprofitable, minimize non-cash expenses, minimize cash burns, and minimize ownership dilution. IREN's total mining cost per BTC is 30% higher than MARA and RIOT while stock compensation is similar to RIOT's or about half of MARA.

May 18

Iris Energy Limited: A Way To Play Bitcoin's Eventual Turnaround

Bitcoin miner profitability has two key inputs: miner difficulty and bitcoin price. Neither is moving in the right direction for the miners. As a result of that, most miners have sold off 70 to 80 percent from highs. Iris Energy is attempting to scale up a large mining operation while marketing itself as a clean energy miner.

Shareholder Returns

IRENUS SoftwareUS Market
7D-8.6%8.1%6.3%
1Yn/a-20.3%-18.8%

Return vs Industry: Insufficient data to determine how IREN performed against the US Software industry.

Return vs Market: Insufficient data to determine how IREN performed against the US Market.

Price Volatility

Is IREN's price volatile compared to industry and market?
IREN volatility
IREN Average Weekly Movement18.9%
Software Industry Average Movement11.1%
Market Average Movement8.1%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: IREN is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 19% a week.

Volatility Over Time: IREN's weekly volatility (19%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
201839William Robertshttps://irisenergy.co

Iris Energy Limited operates as a bitcoin mining company. The company was incorporated in 2018 and is based in Sydney, Australia.

Iris Energy Fundamentals Summary

How do Iris Energy's earnings and revenue compare to its market cap?
IREN fundamental statistics
Market CapAU$261.10m
Earnings (TTM)-AU$662.49m
Revenue (TTM)AU$66.22m

3.9x

P/S Ratio

-0.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IREN income statement (TTM)
RevenueAU$66.22m
Cost of RevenueAU$7.18m
Gross ProfitAU$59.03m
Other ExpensesAU$721.53m
Earnings-AU$662.49m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-12.49
Gross Margin89.15%
Net Profit Margin-1,000.50%
Debt/Equity Ratio18.3%

How did IREN perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is IREN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IREN?

Other financial metrics that can be useful for relative valuation.

IREN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.4x
Enterprise Value/EBITDA8.5x
PEG Ration/a

Price to Sales Ratio vs Peers

How does IREN's PS Ratio compare to its peers?

IREN PS Ratio vs Peers
The above table shows the PS ratio for IREN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average394.6x
CLSK CleanSpark
1.5x41.2%US$187.0m
BTBT Bit Digital
2.1xn/aUS$126.2m
LCHD Leader Capital Holdings
1545.5xn/aUS$95.3m
DTSR.F Ether Capital
29.4x45.4%US$40.5m
IREN Iris Energy
3.9x68.7%US$181.4m

Price-To-Sales vs Peers: IREN is good value based on its Price-To-Sales Ratio (3.9x) compared to the peer average (394.6x).


Price to Earnings Ratio vs Industry

How does IREN's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Sales vs Industry: IREN is good value based on its Price-To-Sales Ratio (3.9x) compared to the US Software industry average (4.7x)


Price to Sales Ratio vs Fair Ratio

What is IREN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IREN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.9x
Fair PS Ratio26.8x

Price-To-Sales vs Fair Ratio: IREN is good value based on its Price-To-Sales Ratio (3.9x) compared to the estimated Fair Price-To-Sales Ratio (26.8x).


Share Price vs Fair Value

What is the Fair Price of IREN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IREN ($3.42) is trading below our estimate of fair value ($221.12)

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


Price to Earnings Growth Ratio

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


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Future Growth

How is Iris Energy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


91.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IREN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: IREN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IREN is expected to become profitable in the next 3 years.

Revenue vs Market: IREN's revenue (68.7% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: IREN's revenue (68.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IREN's Return on Equity is forecast to be high in 3 years time (34.1%)


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Past Performance

How has Iris Energy performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-24,564.7%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: IREN is currently unprofitable.

Growing Profit Margin: IREN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if IREN's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: IREN is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (27.1%).


Return on Equity

High ROE: IREN has a negative Return on Equity (-108.18%), as it is currently unprofitable.


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Financial Health

How is Iris Energy's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: IREN's short term assets (A$269.2M) exceed its short term liabilities (A$72.0M).

Long Term Liabilities: IREN's short term assets (A$269.2M) exceed its long term liabilities (A$58.8M).


Debt to Equity History and Analysis

Debt Level: IREN has more cash than its total debt.

Reducing Debt: Insufficient data to determine if IREN'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: IREN has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: IREN has less than a year of cash runway if free cash flow continues to reduce at historical rates of 111.1% each year


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Dividend

What is Iris Energy 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 IREN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

Growing Dividend: Insufficient data to determine if IREN'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 IREN 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

William Roberts (31 yo)

no data

Tenure

AU$280,418

Compensation

Mr. William Roberts has been co-founder and Co-Chief Executive Officer at Iris Energy Limited. Prior to Iris Energy, Mr. Roberts worked across accounting & banking, resources, commodities and real assets a...


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD194.78K) is below average for companies of similar size in the US market ($USD1.69M).

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


Leadership Team

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


Board Members

Experienced Board: IREN'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.


Ownership Breakdown

Dilution of Shares: IREN only recently listed within the past 12 months.


Top Shareholders

Company Information

Iris Energy Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Iris Energy Limited
  • Ticker: IREN
  • Exchange: NasdaqGS
  • Founded: 2018
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$181.359m
  • Shares outstanding: 53.03m
  • Website: https://irisenergy.co

Number of Employees


Location

  • Iris Energy Limited
  • 60 Margaret Street
  • Level 21
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/06/30


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.