NasdaqCM:RIOT

Stock Analysis Report

Executive Summary

Riot Blockchain, Inc., together with its subsidiaries, focuses on building, supporting, and operating Blockchain technologies.

Risk Analysis

Earnings have declined by -44.36% per year over past 5 years

Has less than 1 year of cash runway

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

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has Riot Blockchain's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RIOT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.4%

RIOT

1.7%

US Software

1.2%

US Market


1 Year Return

-10.4%

RIOT

40.0%

US Software

24.2%

US Market

Return vs Industry: RIOT underperformed the US Software industry which returned 39.8% over the past year.

Return vs Market: RIOT underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

RIOTIndustryMarket
7 Day7.4%1.7%1.2%
30 Day9.8%6.5%3.5%
90 Day-12.0%21.0%11.7%
1 Year-10.4%-10.4%41.2%40.0%26.9%24.2%
3 Year-51.4%-56.6%143.7%134.0%53.0%43.2%
5 Year-89.3%-90.5%201.4%179.9%75.3%56.0%

Price Volatility Vs. Market

How volatile is Riot Blockchain's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

1.26x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RIOT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RIOT's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RIOT is good value based on its PB Ratio (1.2x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is Riot Blockchain forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.8%

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 Riot Blockchain 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 Riot Blockchain performed over the past 5 years?

-44.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RIOT is currently unprofitable.

Growing Profit Margin: RIOT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RIOT is unprofitable, and losses have increased over the past 5 years at a rate of -44.4% per year.

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

Earnings vs Industry: RIOT is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.8%).


Return on Equity

High ROE: RIOT has a negative Return on Equity (-104.82%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Riot Blockchain's financial position?


Financial Position Analysis

Short Term Liabilities: RIOT's short term assets ($20.3M) exceed its short term liabilities ($3.8M).

Long Term Liabilities: RIOT's short term assets ($20.3M) exceed its long term liabilities ($989.8K).


Debt to Equity History and Analysis

Debt Level: RIOT is debt free.

Reducing Debt: RIOT has no debt compared to 5 years ago when its debt to equity ratio was 9.4%.


Balance Sheet

Inventory Level: RIOT has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if RIOT's debt is covered by short term assets.


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: RIOT has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: RIOT has less than a year of cash runway if free cash flow continues to reduce at historical rates of -48.6% each year


Next Steps

Dividend

What is Riot Blockchain's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if RIOT'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 RIOT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Riot Blockchain's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average board tenure


CEO

Jeff McGonegal (68yo)

0.9yrs

Tenure

US$400,654

Compensation

Mr. Jeffrey G. McGonegal, also known as Jeff, has been the Principal of McGonegal and Co. since 1997. He has been Chief Executive Officer at Riot Blockchain, Inc., since February 6, 2019 and its Interim Ch ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD400.65K) is about average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Board Age and Tenure

2.2yrs

Average Tenure

52.5yo

Average Age

Experienced Board: RIOT's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

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 37.8%.


Management Team

  • Jeff McGonegal (68yo)

    CEO & Interim CFO

    • Tenure: 0.9yrs
    • Compensation: US$400.65k
  • Lyndal Hesterberg

    Consultant

    • Jeffrey Vormittag

      COO of Riot Blockchain Canada

      • Tenure: 2yrs
      • Compensation: US$826.82k

    Board Members

    • Frank Bishop (75yo)

      Member of Advisory Board

      • Tenure: 2.2yrs
    • Remo Mancini (67yo)

      Chairman & Lead Director

      • Tenure: 1.3yrs
      • Compensation: US$704.87k
    • David Flum

      Member of the Medical Advisory Board

      • Tenure: 10.6yrs
    • David Talan

      Member of the Medical Advisory Board

      • Tenure: 10.6yrs
    • Douglas Owens

      Member of the Medical Advisory Board

      • Tenure: 10.6yrs
    • Steven Wolf

      Member of The Medical Advisory Board

      • Tenure: 10.6yrs
    • Benjamin Yi (38yo)

      Independent Director

      • Tenure: 1.3yrs
      • Compensation: US$10.69k
    • Yan Pritzker

      Member of Industry Leading Advisory Board

      • Tenure: 0.5yrs
    • Jason Les (33yo)

      Independent Director

      • Tenure: 2.2yrs
      • Compensation: US$154.79k
    • Pierre Rochard

      Member of Industry Leading Advisory Board

      • Tenure: 0.5yrs

    Company Information

    Riot Blockchain, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Riot Blockchain, Inc.
    • Ticker: RIOT
    • Exchange: NasdaqCM
    • Founded: 2000
    • Industry: Application Software
    • Sector: Software
    • Market Cap: US$36.108m
    • Shares outstanding: 24.73m
    • Website: https://www.riotblockchain.com

    Number of Employees


    Location

    • Riot Blockchain, Inc.
    • 202 6th Street
    • Suite 401
    • Castle Rock
    • Colorado
    • 80104
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    RIOTNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJan 2003
    AP4NDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2003
    0KX0LSE (London Stock Exchange)YesCommon StockGBEURJan 2003

    Biography

    Riot Blockchain, Inc., together with its subsidiaries, focuses on building, supporting, and operating Blockchain technologies. It is involved in digital currency mining operation, which utilizes specialized computers that generate digital currency primarily bitcoin. The company also holds interests in various activities, including purchasing and selling digital currencies; provides accounting, audit, and verification services for blockchain based assets, such as digital currencies; and develops TessPay, a payments ecosystem for component and sub-component supply chain settlement solution, as well as other blockchain solutions for telecommunications companies. As of December 31, 2018, approximately 7,731 of the miners were installed and operating. The company was formerly known as Bioptix, Inc. and changed its name to Riot Blockchain, Inc. in October 2017. Riot Blockchain, Inc. was founded in 2000 and is based in Castle Rock, Colorado. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 23:54
    End of Day Share Price2020/01/17 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.