OTCPK:MGTI

Stock Analysis Report

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MGT Capital Investments

Executive Summary

MGT Capital Investments, Inc. engages in bitcoin mining activity in the United States.


Snowflake Analysis

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

How has MGT Capital Investments's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MGTI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.8%

MGTI

3.5%

US Software

2.3%

US Market


1 Year Return

-68.8%

MGTI

37.9%

US Software

6.7%

US Market

Return vs Industry: MGTI underperformed the US Software industry which returned 37.9% over the past year.

Return vs Market: MGTI underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

MGTIIndustryMarket
7 Day-7.8%3.5%2.3%
30 Day-22.5%11.3%-0.7%
90 Day-7.3%34.0%17.1%
1 Year-68.8%-68.8%39.0%37.9%9.0%6.7%
3 Year-98.6%-98.6%155.6%146.9%36.7%27.8%
5 Year-96.4%-96.4%251.2%230.5%65.2%46.9%

Price Volatility Vs. Market

How volatile is MGT Capital Investments's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is MGT Capital Investments undervalued compared to its fair value and its price relative to the market?

2.76x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: MGTI 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 MGTI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MGTI is good value based on its PB Ratio (2.8x) compared to the US Software industry average (6.9x).


Next Steps

Future Growth

How is MGT Capital Investments forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.6%

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 MGT Capital Investments 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

  • Take a look at our analysis of MGTI’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access MGT Capital Investments's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has MGT Capital Investments performed over the past 5 years?

-17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGTI is currently unprofitable.

Growing Profit Margin: MGTI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MGTI is unprofitable, and losses have increased over the past 5 years at a rate of -17.7% per year.

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

Earnings vs Industry: MGTI is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (7.9%).


Return on Equity

High ROE: MGTI has a negative Return on Equity (-339.51%), as it is currently unprofitable.


Next Steps

Financial Health

How is MGT Capital Investments's financial position?


Financial Position Analysis

Short Term Liabilities: MGTI's short term assets ($130.0K) do not cover its short term liabilities ($1.6M).

Long Term Liabilities: MGTI's short term assets ($130.0K) exceed its long term liabilities ($51.0K).


Debt to Equity History and Analysis

Debt Level: MGTI's debt to equity ratio (5%) is considered satisfactory.

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

Forecast Cash Runway: MGTI has less than a year of cash runway if free cash flow continues to reduce at historical rates of 16.4% each year


Next Steps

Dividend

What is MGT Capital Investments's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

US$540k

CEO Compensation


CEO

Robert Ladd (62yo)

2.92yrs

Tenure

US$540,000

Compensation

Mr. Robert B. Ladd, CFA, has been the President of MGT Capital Investments, Inc. since January 9, 2012 and served as its Interim Chief Financial Officer and Interim Treasurer since December 8, 2015 until F ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD540.00K) is about average for companies of similar size in the US market ($USD610.56K).

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


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: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 106.8%.


Top Shareholders

Company Information

MGT Capital Investments, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MGT Capital Investments, Inc.
  • Ticker: MGTI
  • Exchange: OTCPK
  • Founded: 1977
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$7.309m
  • Shares outstanding: 477.71m
  • Website: https://www.mgtci.com

Number of Employees


Location

  • MGT Capital Investments, Inc.
  • 150 Fayetteville Street
  • Suite 1110
  • Raleigh
  • North Carolina
  • 27601
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGTIOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 1999

Biography

MGT Capital Investments, Inc. engages in bitcoin mining activity in the United States. As of January 31, 2020, it owned and operated approximately 1,500 miners in LaFayette, Georgia. The company was incorporated in 1977 and is headquartered in Raleigh, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 00:02
End of Day Share Price2020/07/09 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.