Mawson Infrastructure Group Inc., a digital infrastructure provider, operates in cryptocurrency mining in the United States and Australia. It owns and operates modular data centers. The company is based in North Sydney, Australia.

Australia

Mawson Infrastructure Group, Inc.

Financial Services

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

MIGI reported revenue of USD 54mn in the last 12 months, down 8% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 44% from FY24 to USD -1.49. Market expects EPS to reach USD -2.57 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 73ppts and its growth decelerated by 7ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is slightly unfavourable.

Historically, MIGI has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -49.5%, a growth from -139.3% in FY23. 

Mawson Infrastructure Group, Inc. reported a return on equity (RoE) of -193.4% in the last 12 months, down from -114.2% in FY23. The market consensus projects an RoE of -138.9% in FY24, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to -37.7% in the last 12 months, an increase from -55.7% in FY23. The market analysts predict that RoA will be -47.9% in FY24, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to -166.1%, below the peers. The consensus estimate for FY24 for RoCE is -105.6%, again behind the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -4.6 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.

MIGI has very poor trading liquidity. The average private investor can sell his common position in the stock in a single trading day. Liquidity is very unstable 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. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note robust profitability, strong debt servicing capacity, and adequate interest coverage, among the positive credit factors. Among the negative credit factors, we point to negligible return on capital, excessive margin volatility, and an unfavourable capital structure.

In highly turbulent market conditions, MIGI 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, MIGI 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. 

From both historical and forecast perspectives, the stock is considerably underpriced compared to similar stocks. 

Mawson Infrastructure Group, Inc.

$ 0.59

3

Mawson Infrastructure Group, Inc.

$ 0.59

3

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Profitability factor

Risk / Profitability

Risk factor

Profitability factor

$ 0.59

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