OTCPK:HUTM.F

Stock Analysis Report

Executive Summary

Hut 8 Mining Corp. operates as a cryptocurrency mining company in Canada.

Snowflake

Fundamentals

Fair value with concerning outlook.


Similar Companies

Share Price & News

How has Hut 8 Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-9.1%

HUTM.F

-1.3%

US IT

0.4%

US Market


1 Year Return

-33.8%

HUTM.F

21.8%

US IT

6.9%

US Market

Return vs Industry: HUTM.F underperformed the US IT industry which returned 21.8% over the past year.

Return vs Market: HUTM.F underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

HUTM.FIndustryMarket
7 Day-9.1%-1.3%0.4%
30 Day-4.4%-1.7%-1.2%
90 Day-15.4%-4.0%-0.4%
1 Year-33.8%-33.8%23.0%21.8%9.3%6.9%
3 Yearn/a94.5%86.6%45.8%36.4%
5 Yearn/a149.1%126.3%62.9%45.1%

Price Volatility Vs. Market

How volatile is Hut 8 Mining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hut 8 Mining undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: HUTM.F ($1.52) is trading below our estimate of fair value ($7.79)

Significantly Undervalued: HUTM.F is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HUTM.F is good value based on its PB Ratio (2.6x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

How is Hut 8 Mining forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

18.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if HUTM.F's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if HUTM.F's earnings are forecast to grow faster than the US market

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

Revenue vs Market: HUTM.F's revenue (18.2% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: HUTM.F's revenue (18.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if HUTM.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hut 8 Mining performed over the past 5 years?

-47.9%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HUTM.F is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

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

Earnings vs Industry: HUTM.F is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (8.4%).


Return on Equity

High ROE: HUTM.F has a negative Return on Equity (-149.99%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: HUTM.F is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: HUTM.F is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Hut 8 Mining's financial position?


Financial Position Analysis

Short Term Liabilities: HUTM.F's short term assets (CA$13.2M) do not cover its short term liabilities (CA$14.0M)

Long Term Liabilities: HUTM.F's short term assets (13.2M) do not cover its long term liabilities (25.7M)


Debt to Equity History and Analysis

Debt Level: HUTM.F's debt to equity ratio (44.2%) is considered high

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


Balance Sheet

Inventory Level: HUTM.F has a high level of physical assets or inventory.

Debt Coverage by Assets: HUTM.F's debt is not covered by short term assets (assets are 0.4x debt).


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

Forecast Cash Runway: Insufficient data to determine if HUTM.F has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Hut 8 Mining'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


Stability and Growth of Payments

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

High Dividend: Unable to evaluate HUTM.F's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if HUTM.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HUTM.F'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 HUTM.F'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 Hut 8 Mining's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Andrew Kiguel 0

1.5yrs

Tenure

CA$2,986,518

Compensation

Mr. Andrew Kiguel has been President, Chief Executive Officer and a Director of Hut 8 Mining Corp. since April 2, 2018. Mr. Kiguel joins Hut 8 from GMP Securities L.P., where he played an integral role for ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Andrew's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

1.4yrs

Average Tenure

Experienced Management: HUTM.F's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

71yo

Average Age

Experienced Board: HUTM.F's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: HUTM.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$38,65224 Sep 19
Andrew Kiguel
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceCA$1.55
BuyCA$18,78528 Jan 19
William Tai
EntityIndividual
Role
Chairman of the Board
Chairman
Shares20,833
Max PriceCA$0.90
BuyCA$18,78528 Jan 19
Andrew Kiguel
EntityIndividual
Role
Chief Executive Officer
President
Shares20,833
Max PriceCA$0.90
BuyCA$18,78528 Jan 19
Valery Vavilov
EntityIndividual
Shares20,833
Max PriceCA$0.90
BuyCA$3,77128 Jan 19
Demetrios Vaiopoulos
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares4,167
Max PriceCA$0.90
BuyCA$18,78528 Jan 19
Michael Novogratz
EntityIndividual
Shares20,833
Max PriceCA$0.90

Ownership Breakdown


Management Team

  • Andrew Kiguel

    President

    • Tenure: 1.5yrs
    • Compensation: CA$2.99m
  • Kyle Appleby (44yo)

    Corporate Secretary

    • Tenure: 0yrs
    • Compensation: CA$48.00k
  • Sean Clark

    • Tenure: 1.6yrs
    • Compensation: CA$62.50k
  • Jimmy Vaiopoulos

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: CA$164.53k
  • Etienne Snyman

    Head of Power

    • Tenure: 1.3yrs
  • George Aizpurua

    VP of Communications

    • Tenure: 0yrs

Board Members

  • Bill Tai (56yo)

    Chairman

    • Tenure: 1.8yrs
    • Compensation: CA$41.64k
  • Gerri Sinclair (71yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: CA$248.63k
  • Dennis Mills (72yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: CA$248.63k
  • Andrew Kiguel

    President

    • Tenure: 1.5yrs
    • Compensation: CA$2.99m
  • Jeremy Sewell

    Director

    • Tenure: 0.3yrs
  • Joe Flinn

    Director

    • Tenure: 1.2yrs
    • Compensation: CA$97.32k

Company Information

Hut 8 Mining Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hut 8 Mining Corp.
  • Ticker: HUTM.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: CA$175.450m
  • Listing Market Cap: CA$133.603m
  • Shares outstanding: 90.44m
  • Website: https://www.hut8mining.com

Location

  • Hut 8 Mining Corp.
  • 130 King Street West
  • Suite 1800
  • Toronto
  • Ontario
  • M5X 1E3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HUTTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2018
HUTM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2018

Biography

Hut 8 Mining Corp. operates as a cryptocurrency mining company in Canada. The company engages in industrial scale bitcoin mining operations. It also owns and operates nine Blockbox AC data centers. The com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:47
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.