Marathon Digital Stock Fair Value – MARATHON DIGITAL Reports Q2 FY2023 Earnings Results on June 30, 2023
August 11, 2023
🌥️Earnings Overview
On June 30 2023, MARATHON DIGITAL ($NASDAQ:MARA) reported their financials for the second quarter of FY2023, with total revenue at USD 81.8 million, representing a dramatic rise from the previous year’s 24.9 million. Net income was USD -19.1 million, in comparison to the -191.6 million reported in Q2 of FY2022.
Price History
MARATHON DIGITAL reported their Q2 FY2023 earnings results on Tuesday, June 30, 2023. The stock opened at $15.6 and closed at $15.7, which was an increase of 4.3% from its last closing price of $15.1. The results showed that MARATHON DIGITAL had a successful quarter and investors responded positively by sending the stock price up 4.3%. Analysts believe that the company is on track to continue its positive momentum in the upcoming quarters, as they have successfully implemented their strategies over the past few months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Marathon Digital. More…
| Total Revenues | Net Income | Net Margin |
| 174 | -485.49 | -86.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Marathon Digital. More…
| Operations | Investing | Financing |
| -278.48 | -89.66 | 406.93 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Marathon Digital. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.37k | 762.99 | 3.59 |
Key Ratios Snapshot
Some of the financial key ratios for Marathon Digital are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 390.2% | – | -284.5% |
| FCF Margin | ROE | ROA |
| -189.2% | -53.5% | -22.5% |
Analysis – Marathon Digital Stock Fair Value
At GoodWhale, we conducted an analysis of MARATHON DIGITAL‘s wellbeing and our proprietary Valuation Line has calculated the intrinsic value of MARATHON DIGITAL’s share to be around $29.8. However, we have noticed that the current stock price of MARATHON DIGITAL is at $15.7, which is undervalued by 47.4%. This means that the stock is trading below its perceived value, which creates an opportunity for potential investors to get in at a lower price but still benefit from potential upside. More…
Peers
As the cryptocurrency market continues to grow, so does the competition among mining companies. Marathon Digital Holdings Inc is up against some stiff competition from the likes of Hut 8 Mining Corp, Bit Digital Inc, and HIVE Blockchain Technologies Ltd. All three companies are vying for a piece of the pie, and each has its own strengths and weaknesses. It will be interesting to see how this competition plays out in the coming months and years.
– Hut 8 Mining Corp ($TSX:HUT)
Hut 8 Mining Corp is a cryptocurrency mining and blockchain infrastructure company. The Company has a portfolio of 24,490 bitcoin mining machines. Hut 8 Mining Corp was founded in 2017 and is headquartered in Toronto, Canada.
– Bit Digital Inc ($NASDAQ:BTBT)
The company has a market cap of $87.42M and a ROE of -12.65%. The company is engaged in the business of providing digital marketing and advertising services. The company has a portfolio of products and services that helps businesses to reach their target audiences. The company offers a suite of tools that helps businesses to create, manage, and track their digital marketing campaigns.
– HIVE Blockchain Technologies Ltd ($TSXV:HIVE)
HIVE Blockchain Technologies Ltd is a cryptocurrency mining company that operates mining facilities for cryptocurrencies, primarily for Ethereum. The company is based in Vancouver, Canada. The company went public on the TSX Venture Exchange in September 2017. In 2018, the company acquired a majority stake in a Swedish cryptocurrency mining company, Cryptomine.
Summary
MARATHON DIGITAL has seen a significant improvement in their financial performance in the second quarter of the 2023 fiscal year. Total revenues amounted to USD 81.8 million, a more than three-fold increase from the 24.9 million reported the same period one year prior. Net income was -19.1 million, a great improvement from -191.6 million in the prior year.
Investors appear to be responding positively to these results, evidenced by the increase in the stock price on June 30th. With that said, MARATHON DIGITAL still operates at a net loss, and investors should consider the risks associated with investing in such a company before making a decision.
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