Riot Platforms (RIOT) AI Stock Analysis

• Market Cap: $7.05B
• Dividend Yield: N/A
• Average Volume (3M): 28.71M
• Price to Earnings (P/E): 51.5
• Beta (1Y): 2.31
• Revenue Growth: 103.62%
• EPS Growth: 49.48%
• Country: US
• Employees: 783
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.26
• Shares Outstanding: 371,807,200
• 10 Day Avg. Volume: 24,820,742
• 30 Day Avg. Volume: 28,711,016
• PEG Ratio: -0.11
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 7.48
• P/FCF Ratio: -1.85
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 12.77
• Enterprise Value/Gross Profit: 44.90
• Enterprise Value/Ebitda: 11.90
• 1Y Price Target: $27.50
• Price Target Upside: 58.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): -0.48
• Revenue Forecast (FY): $668.70M

• Rating: 52 Neutral
• Price Target: $17.50 ▲(0.92% Upside)

Riot Platforms' overall score is driven by its financial challenges, despite strong revenue growth and strategic initiatives. The technical indicators suggest mixed signals, with potential support levels but short-term bearish momentum. The high P/E ratio indicates potential overvaluation, while the earnings call highlights both strategic progress and ongoing financial challenges.

Positive Factors

Data Center Expansion

The expansion of data center capacity positions Riot to capitalize on growing demand, enhancing its infrastructure capabilities and long-term growth potential.

Revenue Growth

Strong revenue growth indicates effective business strategies and market demand, supporting Riot's financial health and competitive position.

Low-Cost Power Strategy

A low-cost power strategy enhances profitability and competitive advantage, crucial for sustaining margins in the energy-intensive mining industry.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder Riot's ability to reinvest in growth and weather market fluctuations, impacting long-term viability.

Cash Flow Issues

Cash flow challenges can limit operational flexibility and investment capacity, posing risks to Riot's financial stability and growth initiatives.

High SG&A Expenses

High SG&A expenses, including non-cash stock-based compensation, can erode profitability and indicate inefficiencies, affecting long-term cost management.

Riot Platforms Business Overview & Revenue Model

Company Description

Riot Platforms, Inc., together with its subsidiaries, operates as a Bitcoin mining company in the United States. The company operates in two segments, Bitcoin Mining and Engineering. It offers comprehensive and critical infrastructure for institutional-scale Bitcoin mining facilities in Rockdale and Navarro counties, Texas; and two Bitcoin mining sites in Paducah, Kentucky. The company also designs and manufactures power distribution equipment and custom engineered electrical products; and electricity distribution product design, manufacturing, and installation services for large-scale commercial and governmental customers, as well as data center, power generation, utility, water, industrial, and alternative energy markets. The company was founded in 2000 and is based in Castle Rock, Colorado.

How the Company Makes Money

Riot Platforms generates revenue primarily through the mining of Bitcoin. The company operates a large fleet of ASIC (Application-Specific Integrated Circuit) miners, which are specialized hardware designed to efficiently solve the cryptographic puzzles required for Bitcoin mining. The revenue model is driven by the number of Bitcoins mined, which fluctuates based on the mining difficulty and the Bitcoin price. Additionally, Riot has diversified its revenue streams by engaging in Bitcoin sales, where mined Bitcoins are sold on the open market to realize profits. The company also benefits from strategic partnerships with energy providers to secure low-cost electricity, which is a critical factor in its profitability. Furthermore, Riot has made investments in infrastructure and technology to improve operational efficiency, thereby enhancing its overall margins.

Riot Platforms Financial Statement Overview

Summary

Riot Platforms shows revenue growth but struggles with profitability and cash flow. The low debt level is positive, but negative returns on equity and cash flow issues indicate financial challenges.

Income Statement

Riot Platforms has shown a positive revenue growth rate of 18.09% in the TTM, indicating expansion. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -17.51% and a negative EBIT margin. The gross profit margin is low at 9.21%, suggesting high costs relative to revenue. The EBITDA margin is strong at 85.52%, indicating good operational efficiency before accounting for depreciation and amortization.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.26, indicating a conservative use of debt. However, the return on equity is negative at -3.13%, reflecting challenges in generating returns for shareholders. The equity ratio is solid, suggesting a strong equity base relative to total assets.

Cash Flow

Riot Platforms faces significant cash flow challenges, with a negative operating cash flow and free cash flow. The free cash flow to net income ratio is high at 2.91, indicating that free cash flow is significantly higher than net income, which can be a concern if driven by non-operational factors. The operating cash flow to net income ratio is negative, highlighting cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	637.16M	376.66M	280.68M	259.17M	213.24M	12.08M
Gross Profit	181.23M	113.90M	26.34M	65.47M	131.15M	5.83M
EBITDA	683.64M	324.18M	-2.79M	25.37M	11.71M	-7.81M
Net Income	164.00M	109.40M	-49.47M	-509.55M	-7.93M	-12.67M
Balance Sheet
Total Assets	4.48B	3.94B	2.05B	1.32B	1.53B	280.15M
Cash, Cash Equivalents and Short-Term Investments	330.75M	412.13M	908.35M	339.75M	482.66M	235.01M
Total Debt	285.35M	613.16M	21.34M	22.25M	13.44M	0.00
Total Liabilities	974.07M	791.62M	163.06M	168.52M	173.62M	3.08M
Stockholders Equity	3.50B	3.14B	1.89B	1.15B	1.36B	277.07M
Cash Flow
Free Cash Flow	-1.44B	-1.52B	-391.05M	-352.33M	-508.36M	-52.42M
Operating Cash Flow	-565.76M	-255.05M	33.09M	530.00K	-86.38M	-11.15M
Investing Cash Flow	-703.98M	-1.51B	-414.77M	-354.86M	-490.33M	-32.83M
Financing Cash Flow	1.25B	1.52B	748.52M	272.35M	665.64M	259.92M

Riot Platforms Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.34
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RIOT, the sentiment is Neutral. The current price of 17.34 is below the 20-day moving average (MA) of 20.71, below the 50-day MA of 18.59, and above the 200-day MA of 12.16, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 40.70 is Neutral, neither overbought nor oversold. The STOCH value of 5.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RIOT.

Riot Platforms Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FUFU	66 Neutral	$577.40M	11.80	30.23%	―	39.84%	-10.81%
MARA	64 Neutral	$6.48B	8.84	23.13%	―	53.51%	112.53%
ACGP	64 Neutral	$775.50M	14.50	5.88%	6.08%	54.17%	64.76%
BTBT	60 Neutral	$1.02B	―	-11.34%	―	14.65%	-240.80%
CIFR	59 Neutral	$9.76B	―	-9.69%	―	35.41%	-38.08%
RIOT	52 Neutral	$7.05B	51.48	5.24%	―	103.62%	49.48%

Riot Platforms Corporate Events

Riot Platforms’ Earnings Call: Expansion Amid Challenges

Riot Platforms, Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company showcased significant strides in expanding its data center capacity and revenue growth, fueled by strategic land acquisitions and an effective power strategy. However, challenges such as a decline in Bitcoin production, decreased net income, and high SG&A expenses were also highlighted, painting a complex picture of Riot’s current financial landscape.

Riot Platforms Achieves Record Revenue and Expands Data Centers

Riot Platforms, Inc., a leader in Bitcoin mining and data center development, operates large-scale facilities in Texas and Kentucky, and is expanding its data center capabilities to support high-density computing demands.