The average target price of CLSK is 19 and suggests 148% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 27.0. This translates into 260% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 12.0. This suggests 60% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

CleanSpark, Inc. operates as a bitcoin miner in the Americas. It owns and operates data centers that primarily run on low-carbon power. Its infrastructure supports Bitcoin, a digital commodity and a tool for financial independence and inclusion. The company was formerly known as Stratean Inc. and changed its name to CleanSpark, Inc. in November 2016. CleanSpark, Inc. was incorporated in 1987 and is headquartered in Henderson, Nevada.

CleanSpark, Inc.

Financial Services

The company pays dividends on rare occasions. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. 

CLSK reported revenue of USD 467mn in the last 12 months, up 119% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. Market expects EPS to reach USD -0.42 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 30ppts over six months and grown 2ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported good EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 60.1% in the last 12 months, up from 29.0% in FY23. 

Historically, CLSK has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 16.1%, a growth from -38.2% in FY23. 

CleanSpark, Inc. reported a return on equity (RoE) of 5.3% in the last 12 months, up from -13.2% in FY23. The market consensus projects an RoE of -5.5% in FY24, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to 4.1% in the last 12 months, an increase from -12.1% in FY23. The market analysts predict that RoA will be -5.2% in FY24, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) grew to 4.3%, below the peers. The consensus estimate for FY24 for RoCE is -4.6%, again behind the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.2 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

CLSK boasts high trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is usually quite stable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. 

No other major risks have been identified.

The risk of default is minimal. We note resilient historical revenue growth, robust profitability, strong debt servicing capacity, adequate interest coverage, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to negligible return on capital, excessive margin volatility, and poor working capital management.

In highly turbulent market conditions, CLSK is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, CLSK is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Based on key historical and expected multiples, the stock is undervalued relative to its peers. Specifically, the stock is fairly valued on P/E, undervalued on EV/EBITD. 

CleanSpark, Inc.

$ 7.28

3

CleanSpark, Inc.

$ 7.28

3

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 7.28

About

About

CleanSpark, Inc.

$ 7.28

3

CleanSpark, Inc.

$ 7.28

3

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 7.28

About

About

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