Stock Analysis

Strong week for Mawson Infrastructure Group (NASDAQ:MIGI) shareholders doesn't alleviate pain of one-year loss

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It is doubtless a positive to see that the Mawson Infrastructure Group, Inc. (NASDAQ:MIGI) share price has gained some 160% in the last three months. But that isn't much consolation for the painful drop we've seen in the last year. Indeed, the share price is down a whopping 88% in the last year. So the rise may not be much consolation. The real question is whether the company can turn around its fortunes. While a drop like that is definitely a body blow, money isn't as important as health and happiness.

On a more encouraging note the company has added US$17m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.

Check out our latest analysis for Mawson Infrastructure Group

Given that Mawson Infrastructure Group didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Mawson Infrastructure Group saw its revenue grow by 238%. That's a strong result which is better than most other loss making companies. So on the face of it we're really surprised to see the share price down 88% over twelve months. Something weird is definitely impacting the stock price; we'd venture the company has destroyed value somehow. We'd recommend taking a very close look at the stock (and any available forecasts), before considering a purchase, because the share price is not correlated with the revenue growth, that's for sure. Of course, investors do over-react when they are stressed out, so the sell-off could be unjustifiably severe.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

NasdaqCM:MIGI Earnings and Revenue Growth March 24th 2023

Take a more thorough look at Mawson Infrastructure Group's financial health with this free report on its balance sheet.

A Different Perspective

We doubt Mawson Infrastructure Group shareholders are happy with the loss of 88% over twelve months. That falls short of the market, which lost 13%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. Putting aside the last twelve months, it's good to see the share price has rebounded by 160%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Mawson Infrastructure Group is showing 5 warning signs in our investment analysis , and 2 of those are significant...

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

What are the risks and opportunities for Mawson Infrastructure Group?

Mawson Infrastructure Group, Inc., a digital infrastructure provider, operates in cryptocurrency mining business in the United States and Australia.

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  • Earnings have declined by 33.6% per year over past 5 years

  • Does not have a meaningful market cap ($44M)

  • Shareholders have been diluted in the past year

  • Volatile share price over the past 3 months

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