Coincheck Group (CNCK) AI Stock Analysis

• Market Cap: $596.51M
• Dividend Yield: N/A
• Average Volume (3M): 34.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: N/A
• EPS Growth: -118.34%
• Country: US
• Employees: 185
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management - Cryptocurrency
• EPS (TTM): N/A
• Shares Outstanding: 130,814,530
• 10 Day Avg. Volume: 32,420
• 30 Day Avg. Volume: 34,210
• PEG Ratio: 0.04
• Price to Book (P/B): 9.17
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -37.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.00
• Price Target Upside: 31.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 42 Neutral
• Price Target: $4.50 ▼(-1.32% Downside)

Coincheck Group's overall stock score is primarily impacted by its weak financial performance, characterized by negative profitability and high leverage. The technical analysis indicates a bearish trend, with some potential for short-term recovery. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Strategic Acquisition

The acquisition of Aplo SAS, with its proprietary trading application and regulatory foundation, could enhance Coincheck's market position and liquidity offerings, supporting long-term growth and competitive advantage in the cryptocurrency sector.

Revenue Diversification

By offering margin trading and lending services, Coincheck diversifies its revenue streams beyond transaction fees, potentially stabilizing income during volatile market conditions and enhancing long-term financial resilience.

Market Position

As a leading fintech company in Japan, Coincheck benefits from a strong market position in the cryptocurrency sector, which can drive sustained growth and brand recognition in the expanding digital asset market.

Negative Factors

High Leverage

High leverage, as indicated by a significant debt-to-equity ratio, poses financial risks by limiting flexibility and increasing vulnerability to market fluctuations, potentially impacting long-term financial stability.

Negative Cash Flow

Negative operating and free cash flows indicate liquidity challenges, which can hinder the company's ability to invest in growth opportunities and meet financial obligations, affecting long-term sustainability.

Profitability Challenges

Negative profitability metrics highlight operational inefficiencies and cost management issues, which can undermine long-term financial health and competitiveness if not addressed effectively.

Coincheck Group Business Overview & Revenue Model

Company Description

Coincheck Group N.V. operates as a holding company. The Company, through its subsidiaries, operates in the crypto asset and web3 domains, as well as offers cryptocurrency trading services.

How the Company Makes Money

Coincheck Group generates revenue through several key streams. Primarily, the company earns money from transaction fees charged on cryptocurrency trades carried out on its platform. These fees are often a percentage of the trade value or a fixed rate per transaction. Additionally, Coincheck provides services such as margin trading and lending, which also contribute to its revenue through interest fees and loan arrangements. The company may also generate income from partnerships with other financial institutions or blockchain technology firms, enhancing its service offerings and expanding its user base. Lastly, Coincheck's revenue can be influenced by market trends and the overall trading volume on its platform, which can fluctuate based on cryptocurrency market conditions.

Coincheck Group Financial Statement Overview

Summary

Coincheck Group faces significant financial challenges, with negative profitability and cash flow metrics. The high leverage and negative return on equity highlight potential financial instability. While there is some revenue growth, the overall financial health of the company is weak, requiring strategic improvements to enhance profitability and reduce financial risk.

Income Statement

Coincheck Group has experienced fluctuating revenue growth, with a recent positive trend of 3.56% in the latest year. However, profitability metrics such as net profit margin and EBIT margin are negative, indicating challenges in maintaining operational efficiency. The gross profit margin is relatively low, suggesting limited pricing power or high cost of goods sold.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 4.13, indicating significant leverage and potential financial risk. Return on equity is negative, reflecting recent net losses. The equity ratio is low, suggesting limited financial stability and reliance on debt financing.

Cash Flow

Coincheck Group's cash flow situation is concerning, with negative operating and free cash flows. The free cash flow growth rate is significantly negative, and the operating cash flow to net income ratio is also negative, indicating cash flow challenges and potential liquidity issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	383.33B	224.05B	176.92B	690.97B	524.42B
Gross Profit	13.48B	6.98B	5.30B	24.97B	18.99B
EBITDA	4.35B	3.52B	-360.00M	14.37B	14.09B
Net Income	-14.35B	1.97B	-559.00M	9.79B	10.24B
Balance Sheet
Total Assets	112.27B	768.40B	360.62B	540.13B	486.13B
Cash, Cash Equivalents and Short-Term Investments	8.65B	10.84B	7.70B	73.19B	66.66B
Total Debt	44.48B	1.66B	19.11B	439.00M	479.00M
Total Liabilities	101.50B	755.96B	350.14B	524.09B	473.15B
Stockholders Equity	10.77B	12.44B	10.48B	16.04B	12.98B
Cash Flow
Free Cash Flow	-2.62B	3.21B	-4.19B	7.18B	838.00M
Operating Cash Flow	-1.92B	3.90B	-3.80B	7.40B	1.03B
Investing Cash Flow	-903.00M	-435.00M	-749.00M	-219.00M	-269.00M
Financing Cash Flow	565.00M	-206.51M	-5.46B	-6.65B	-225.00M

Coincheck Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNCK, the sentiment is Negative. The current price of 4.56 is below the 20-day moving average (MA) of 4.86, below the 50-day MA of 4.97, and below the 200-day MA of 6.53, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 41.35 is Neutral, neither overbought nor oversold. The STOCH value of 10.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNCK.

Coincheck Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FUFU	69 Neutral	610.02M	13.25	33.22%	―	39.84%	-10.81%
BTBT	62 Neutral	1.01B	-9.15	6.11%	―	14.65%	-240.80%
HIPO	55 Neutral	875.23M	-83.00	―	―	43.15%	94.09%
CIFR	54 Neutral	5.56B	-31.93	-20.56%	―	0.11%	-914.42%
CNCK	42 Neutral	$596.51M	―	-1.11%	―	―	-118.34%
FLD	39 Underperform	173.59M	-2.19	-38.47%	―	―	-8567.69%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%