Digi Power X (DGX) AI Stock Analysis

• Market Cap: C$128.67M
• Dividend Yield: N/A
• Average Volume (3M): 44.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.97
• Revenue Growth: 102.24%
• EPS Growth: 31.44%
• Country: CA
• Employees: 15
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 36,307,870
• 10 Day Avg. Volume: 38,929
• 30 Day Avg. Volume: 44,254
• PEG Ratio: <0.01
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.52
• Enterprise Value/Market Cap: 0.07
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: -0.90
• Enterprise Value/Ebitda: -0.38
• 1Y Price Target: C$3.43
• Price Target Upside: -1.51% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: ―

Digihost Technology's stock score reflects a mixed outlook. The company's financial performance shows significant challenges with ongoing losses, impacting overall profitability. However, the technical analysis indicates strong upward momentum, suggesting market optimism. While the valuation is hindered by a negative P/E ratio, the earnings call and recent corporate events point to potential growth opportunities through strategic expansion and revenue diversification. Investors should weigh these opportunities against the persistent financial challenges.

Positive Factors

Future Expansion

There is potential for Digi Power X to expand existing facilities and access up to 200MW at a new site in North Carolina.

Revenue Growth

Digi Power X's shift towards hosting services has led to a significant increase in co-location revenue.

Strategic Partnerships

Digi Power X is advancing with a major power project in Alabama and a new collaboration with SuperMicro Computer for servers powered by Nvidia B200 Blackwell modules.

Negative Factors

Financial Constraints

Digi Power X is operating at a small scale, is cash-strapped, and burdened by a depressed stock price, limiting its ability to make significant strategic changes.

Operational Challenges

Uncertainty surrounds the speed of the Alabama installation and deployment, with no visible customer relationships yet established.

Sales Estimates

Sales estimates have been reduced due to lower expected collocation revenue, fluctuating power revenue, and minimal contribution from self-mining.

Digi Power X Business Overview & Revenue Model

Company Description

Digi Power X Inc. operates as an energy infrastructure company. The Company develops cutting-edge data centers to drive the expansion of energy assets.

How the Company Makes Money

Digihost Technology makes money primarily through its cryptocurrency mining operations. The company's revenue model revolves around the mining of digital currencies, particularly Bitcoin, which is achieved by solving complex mathematical problems using high-powered computing hardware. Once mined, these cryptocurrencies can be held as assets on the company's balance sheet or sold in the market for revenue. Additionally, Digihost may engage in strategic partnerships and collaborations to optimize energy usage, reduce operational costs, and enhance profitability. The company's earnings are influenced by factors such as cryptocurrency market prices, mining difficulty, and energy costs.

Digi Power X Financial Statement Overview

Summary

Digihost Technology faces significant financial challenges with persistent losses and negative margins. While revenue is growing, cost control is crucial to improve profitability. The balance sheet remains relatively stable with low leverage, but declining equity is a concern. Cash flows show some generation capacity, yet negative free cash flow raises sustainability issues. Strategic cost management and revenue stabilization are essential for future improvement.

Income Statement

The company's income statement reveals significant challenges with negative profitability and fluctuating revenues. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of -23.47%, indicating cost inefficiencies. The net profit margin stands at -38.02%, reflecting substantial losses. However, there is notable revenue growth from the previous year, suggesting some potential for recovery if costs can be controlled.

Balance Sheet

The balance sheet highlights a moderate financial position with low debt levels. The debt-to-equity ratio is minimal at 0.02, indicating low leverage. However, the stockholders' equity has decreased over the years, affecting the equity ratio, which stands at 70.19%. The return on equity is negative, at -59.13%, due to continuous losses, posing a risk to shareholder value.

Cash Flow

Cash flow analysis shows mixed signals. The operating cash flow to net income ratio is positive, at 0.02, indicating some cash generation despite losses. However, free cash flow is negative, showing a decline in the TTM period, leading to a free cash flow to net income ratio of 0.18, which is concerning for sustainability.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	42.15M	26.11M	24.19M	24.95M	3.55M	0.00
Gross Profit	-9.90M	-9.67M	-6.80M	11.13M	-4.00M	0.00
EBITDA	-5.31M	-6.52M	-5.10M	2.78M	-2.35M	0.00
Net Income	-16.02M	-21.89M	4.33M	289.35K	-5.19M	-269.97K
Balance Sheet
Total Assets	38.62M	42.15M	52.60M	80.03M	16.52M	3.90M
Cash, Cash Equivalents and Short-Term Investments	588.61K	479.27K	1.85M	915.72K	31.25K	152.15K
Total Debt	511.31K	1.45M	1.42M	0.00	5.09M	0.00
Total Liabilities	11.52M	12.90M	5.42M	9.82M	6.08M	4.17M
Stockholders Equity	27.09M	29.25M	47.17M	70.20M	10.44M	-274.71K
Cash Flow
Free Cash Flow	-2.89M	2.68M	-18.10M	-42.78M	-3.40M	-368.17K
Operating Cash Flow	376.37K	5.69M	-3.41M	-8.86M	-2.25M	-368.17K
Investing Cash Flow	-3.41M	-7.26M	-14.51M	-34.72M	-1.27M	-2.43M
Financing Cash Flow	2.76M	56.11K	18.86M	44.47M	2.25M	4.10M

Digi Power X Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DGX, the sentiment is Positive. The current price of 3.48 is above the 20-day moving average (MA) of 3.06, above the 50-day MA of 2.34, and above the 200-day MA of 2.35, indicating a bullish trend. The MACD of 0.39 indicates Positive momentum. The RSI at 59.84 is Neutral, neither overbought nor oversold. The STOCH value of 35.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DGX.

Digi Power X Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.91%	5.54%	-19.87%
DGX	62 Neutral	C$128.67M	―	-46.45%	―	102.24%	31.44%
MOGO		$30.34M	―	-27.51%	―	―	―
NOW	63 Neutral	C$59.32M	15.37	679.89%	―	-10.35%	―
HAI	61 Neutral	C$124.77M	58.17	-1.05%	―	-11.61%	-126.61%
CLIP	48 Neutral	C$24.14M	―		―	271.43%	15.04%
CTRL	37 Underperform	C$16.76M	―	139.48%	―	-19.77%	-101.63%

Digi Power X Corporate Events

Digihost Technology Launches US$5.35 Million Private Placement for Expansion

Digihost Technology Inc. announced a private placement of equity securities to raise up to US$5.35 million, with the funds primarily allocated for infrastructure expansion and working capital. This initiative reflects Digihost’s strategic focus on expanding its data center development capabilities, potentially enhancing its market position and benefiting stakeholders through improved operational infrastructure.

Digihost Reports Strong Growth and Strategic Energy Move

Digihost Technology Inc. reported a significant increase in cash flow and revenue, achieving a 257% rise in cash balance and a 21% year-over-year revenue growth in December 2024. Despite challenges like a major site shutdown and Bitcoin’s halving event, the company continues to focus on sustainable energy solutions by partnering with NANO Nuclear Energy.

Digihost and NANO Nuclear Partner for Clean Energy

Digihost Technology and NANO Nuclear Energy have jointly submitted a proposal to the New York State Energy Research and Development Authority, aiming to support the state’s transition to clean and affordable nuclear energy. This collaboration leverages NANO Nuclear’s advanced microreactor technology to contribute to New York’s goal of a zero-emission grid. The partnership highlights the potential for nuclear-powered solutions to address energy challenges in the state.

Digihost Partners with NANO Nuclear for Clean Energy

Digihost Technology Inc. has partnered with NANO Nuclear Energy Inc. to integrate advanced nuclear microreactor technology at its power plant in upstate New York. This collaboration aims to transition Digihost’s infrastructure to carbon-free energy, enhancing both companies’ positions as leaders in clean energy solutions.

Digihost Reports Revenue Growth and Sustainability Efforts

Digihost Technology reported a 26% increase in month-over-month revenue and continues to focus on growth with significant investments in mining infrastructure and renewable energy. The company’s commitment to sustainable energy is highlighted by their new community solar project, providing clean electricity and reducing costs.

Digihost Reports Strong Revenue Growth in 2024

Digihost Technology has reported a significant 104% increase in its year-to-date revenue, reaching $31.4 million, driven by diversified revenue streams such as colocation agreements and energy sales. The company also saw a remarkable 350% growth in EBITDA for the nine-month period ending September 30, 2024. This strong financial performance highlights Digihost’s strategic expansion efforts in the energy infrastructure sector.

Digihost Technology to Release Q3 Financial Results

Digihost Technology Inc., a leading energy infrastructure company, is set to release its third-quarter financial results and provide a year-to-date update on November 15, 2024. The company will host a conference call to discuss these results and has also released an updated investor presentation. These initiatives aim to engage investors and provide insights into the company’s operations and financial health.