Argo Blockchain (OTCPK:ARBK.F) - Share price, News & Analysis

ARBK.F fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	5/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

ARBK.F Stock Overview

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

Rewards

Trading at 86.1% below our estimate of its fair value

Earnings are forecast to grow 41.15% per year

Earnings grew by 2033.5% over the past year

Risk Analysis

High level of non-cash earnings

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Argo Blockchain Competitors

Marathon Digital Holdings

NasdaqCM:MARA

US$1.1b

Riot Blockchain

NasdaqCM:RIOT

US$928.6m

Cipher Mining

NasdaqGS:CIFR

US$410.5m

Iris Energy

NasdaqGS:IREN

US$350.0m

Price History & Performance

Summary of all time highs, changes and price drops for Argo Blockchain
Historical stock prices
Current Share Price	UK£0.60
52 Week High	UK£2.39
52 Week Low	UK£0.53
Beta	2.91
1 Month Change	-32.09%
3 Month Change	-35.50%
1 Year Change	-72.36%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	259.22%

Shareholder Returns

	ARBK.F	US Software	US Market
7D	-14.3%	-14.2%	-10.1%
1Y	-72.4%	-10.7%	-10.8%

Return vs Industry: ARBK.F underperformed the US Software industry which returned -10.7% over the past year.

Return vs Market: ARBK.F underperformed the US Market which returned -10.8% over the past year.

Price Volatility

Is ARBK.F's price volatile compared to industry and market?
ARBK.F volatility
ARBK.F Average Weekly Movement	13.6%
Software Industry Average Movement	11.0%
Market Average Movement	7.7%
10% most volatile stocks in US Market	16.4%
10% least volatile stocks in US Market	2.8%

Stable Share Price: ARBK.F is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: ARBK.F's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US 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?
ARBK.F fundamental statistics
Market Cap	UK£235.07m
Earnings (TTM)	UK£30.77m
Revenue (TTM)	UK£74.20m

7.6x

P/E Ratio

3.2x

P/S Ratio

Is ARBK.F overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARBK.F income statement (TTM)
Revenue	UK£74.20m
Cost of Revenue	UK£12.00m
Gross Profit	UK£62.21m
Other Expenses	UK£31.44m
Earnings	UK£30.77m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.066
Gross Margin	83.83%
Net Profit Margin	41.46%
Debt/Equity Ratio	26.6%

How did ARBK.F 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

6/6

Valuation Score 6/6

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: ARBK.F ($0.6) is trading below our estimate of fair value ($4.31)

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

Price To Earnings Ratio

PE vs Industry: ARBK.F is good value based on its PE Ratio (7.6x) compared to the US Software industry average (41.4x).

PE vs Market: ARBK.F is good value based on its PE Ratio (7.6x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: ARBK.F is good value based on its PEG Ratio (0.2x)

Price to Book Ratio

PB vs Industry: ARBK.F is good value based on its PB Ratio (1.2x) compared to the US Software industry average (3.3x).

Future Growth

How is Argo Blockchain forecast to perform in the next 1 to 3 years based on estimates from 7 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

41.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARBK.F's forecast earnings growth (41.2% per year) is above the savings rate (1.9%).

Earnings vs Market: ARBK.F's earnings (41.2% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: ARBK.F's revenue (40.7% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: ARBK.F's revenue (40.7% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ARBK.F's Return on Equity is forecast to be low in 3 years time (11.8%).

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

2,033.5%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: ARBK.F has a high level of non-cash earnings.

Growing Profit Margin: ARBK.F's current net profit margins (41.5%) are higher than last year (7.6%).

Past Earnings Growth Analysis

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

Accelerating Growth: Insufficient data to compare ARBK.F's past year earnings growth to its 5-year average.

Earnings vs Industry: ARBK.F earnings growth over the past year (2033.5%) exceeded the Software industry 25%.

Return on Equity

High ROE: ARBK.F's Return on Equity (15.2%) is considered low.

Financial Health

How is Argo Blockchain's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: ARBK.F's short term assets (£155.9M) exceed its short term liabilities (£54.7M).

Long Term Liabilities: ARBK.F's short term assets (£155.9M) exceed its long term liabilities (£31.2M).

Debt to Equity History and Analysis

Debt Level: ARBK.F's net debt to equity ratio (20.8%) is considered satisfactory.

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

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

Interest Coverage: ARBK.F's interest payments on its debt are well covered by EBIT (20.1x 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 ARBK.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

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

Next Steps

Explore strong dividend paying companies in the Software industry.

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£240,922

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 ($USD294.77K) is below average for companies of similar size in the US market ($USD1.75M).

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

Leadership Team

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

Board Members

Experienced Board: ARBK.F'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	2022/05/13 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31