Neptune Digital Assets (NDA) AI Stock Analysis

• Market Cap: C$195.54M
• Dividend Yield: N/A
• Average Volume (3M): 753.38K
• Price to Earnings (P/E): 32.8
• Beta (1Y): 0.38
• Revenue Growth: -2.72%
• EPS Growth: N/A
• Country: CA
• Employees: 3
• Sector: Technology
• Sector Strength: 42
• Industry: Financial - Capital Markets
• EPS (TTM): 0.05
• Shares Outstanding: 126,971,090
• 10 Day Avg. Volume: 560,514
• 30 Day Avg. Volume: 753,379
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 114.77
• Price to Cash Flow (P/CF): -52.90
• P/FCF Ratio: 0.00
• 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: C$3.00
• Price Target Upside: 94.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Neptune Digital Assets' strong equity position and recent strategic initiatives are key strengths, though operational challenges and high valuation are significant concerns. The technical indicators suggest a cautious approach given the current trading momentum.

Positive Factors

Financial Performance

Neptune Digital Assets Corp. reported a significant turnaround in financial performance with a comprehensive net income of C$26.7M, compared to a loss of C$7.7M in the previous quarter.

Investment Portfolio

The private equity stake in SpaceX increased significantly, rising to C$8.1M from C$4.0M, indicating growth in its investment portfolio.

Negative Factors

Revenue Decline

Neptune’s F4Q24 results showed a sequential revenue pullback to C$0.45M from C$0.65M in F3Q24, largely reflecting softer bitcoin mining activity.

Neptune Digital Assets Business Overview & Revenue Model

Company Description

Neptune Digital Assets (NDA) is a publicly-traded company operating in the digital finance and blockchain technology sectors. It focuses on cryptocurrency mining, staking, and decentralized finance (DeFi) investments. The company is dedicated to building a diverse portfolio of digital assets and blockchain-related technologies to generate long-term value for its shareholders.

How the Company Makes Money

Neptune Digital Assets makes money primarily through cryptocurrency mining and staking. The company invests in and operates mining facilities that produce various cryptocurrencies, which are then sold or held as part of its asset portfolio. Additionally, NDA participates in staking, which involves holding and validating transactions on a blockchain network in exchange for rewards. The company also invests in decentralized finance projects, earning returns from interest, transaction fees, and appreciation of underlying assets. Strategic partnerships with technology providers and financial institutions enhance its operational capabilities and expand its revenue-generating opportunities.

Neptune Digital Assets Financial Statement Overview

Summary

Neptune Digital Assets has a strong equity position with no debt, reflected in a healthy balance sheet score. However, operational challenges are evident from negative EBIT, EBITDA margins, and negative cash flow, despite improvements in net income.

Income Statement

The company has shown a strong turnaround in net income with a significant increase to 6.1 million CAD in TTM from a loss in the previous periods. However, revenue has been volatile with a decline in the recent TTM period compared to the previous year. The gross profit margin is relatively healthy at 40.24% TTM, but negative EBIT and EBITDA margins indicate underlying operational challenges.

Balance Sheet

Neptune Digital Assets maintains a strong equity position with no debt, reflected in a debt-to-equity ratio of 0. The equity ratio is a solid 99.69%, showcasing a robust balance sheet. Return on equity has improved significantly due to the positive net income, indicating effective use of equity.

Cash Flow

The company faces challenges with negative operating and free cash flows in TTM, which could impact liquidity. Despite this, free cash flow has improved compared to the previous period, indicating some positive cash management. The free cash flow to net income ratio suggests a need for better cash generation from operations.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.19M	2.41M	2.32M	4.19M	358.70K	149.07K
	Gross Profit
881.77K	796.91K	11.76K	-1.91M	180.94K	142.91K
	EBIT
-558.07K	0.00	-2.02M	8.26M	-10.18M	2.24M
	EBITDA
-1.68M	-1.60M	-2.17M	1.22M	-6.83M	-448.71K
	Net Income Common Stockholders
6.10M	2.43M	-5.13M	-21.07M	-2.04M	162.94K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.33M	11.31M	14.60M	8.71M	3.48M	509.65K
	Total Assets
51.58M	50.69M	32.94M	36.04M	54.68M	3.80M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-619.70K	-3.59M	-2.92M	-4.76M	-154.80K	-117.56K
	Total Liabilities
204.78K	805.90K	654.48K	890.79K	769.08K	233.82K
	Stockholders Equity
51.38M	49.88M	32.28M	35.15M	53.91M	3.57M
Cash Flow		Free Cash Flow
-3.32M	-3.53M	-3.73M	-5.71M	-2.48M	-368.56K
	Operating Cash Flow
-2.77M	-3.06M	-3.39M	-460.90K	-1.06M	-368.56K
	Investing Cash Flow
6.32M	3.93M	1.47M	5.06M	-37.44M	-114.46K
	Financing Cash Flow
-340.09K	-200.13K	81.25K	0.00	38.54M	90.58K

Neptune Digital Assets Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.54
• 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 TSE:NDA, the sentiment is Negative. The current price of 1.54 is below the 20-day moving average (MA) of 1.61, below the 50-day MA of 1.77, and above the 200-day MA of 0.88, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.01 is Neutral, neither overbought nor oversold. The STOCH value of 16.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NDA.

Neptune Digital Assets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NDA	58 Neutral	C$195.54M	32.78	10.60%	―	-2.72%	―
Sector *	57 Neutral	$20.94B	10.43	-13.41%	2.52%	4.53%	-23.34%
HUT	49 Neutral	C$1.98B	4.11	2.56%	―	199.41%	―
DMGI	48 Neutral	C$46.75M	―	-15.61%	―	17.68%	-278.21%
HIVE	45 Neutral	$347.81M	―	-2.15%	―	27.99%	90.99%
BITF	44 Neutral	$518.56M	―	-11.98%	―	45.19%	-33.48%
CSTR	38 Underperform	C$6.66M	―	-41.72%	―	-19.38%	78.11%

Neptune Digital Assets Corporate Events

Neptune Digital Assets Strengthens Board with New Independent Director

Neptune Digital Assets Corp. has appointed Tara Amiri as an independent director, succeeding Mitchell Demeter, who will remain as an advisor. Amiri, a seasoned lawyer with extensive experience in corporate finance and securities law, is expected to significantly contribute to Neptune’s strategic vision and governance, enhancing its industry positioning and operational effectiveness.

Neptune Digital Assets Expands Solana Staking Through Partnership with Sol Strategies

Neptune Digital Assets has announced a strategic partnership with Sol Strategies to expand its Solana staking operations, enhancing its revenue and strengthening its position in the proof-of-stake ecosystem. This partnership allows Neptune to receive a share of validator block rewards, increasing its annualized returns and diversifying its income streams, while aligning with its strategy to optimize staking yields and drive long-term shareholder value.

Neptune Digital Assets Expands Bitcoin and Dogecoin Holdings

Neptune Digital Assets has expanded its Bitcoin treasury by acquiring 20 BTC at an average price of USD$99,833, bringing its total holdings to 376 BTC. This move demonstrates Neptune’s long-term commitment to Bitcoin as a key asset and its strategic growth in the cryptocurrency sector. Additionally, Neptune has diversified its crypto exposure with a recent acquisition of 1,000,000 Dogecoin tokens. These acquisitions align with Neptune’s growth strategy, leveraging purchasing power while managing financial risks.

Neptune Digital Assets Expands Credit Line to Boost Crypto Investments

Neptune Digital Assets has expanded its credit line with Sygnum Bank from $20 million to $25 million, aimed at purchasing Bitcoin and other crypto-related assets and supporting strategic investments. This increase, secured against the company’s Bitcoin holdings, reflects Neptune’s strategic efforts to bolster its position in the digital asset market and drive growth within the crypto ecosystem.

Neptune Digital Assets Reports Record Quarter, Eyes 2025 Growth

Neptune Digital Assets Corp reported a record-breaking quarter with a comprehensive net income of $26.7 million, highlighting dynamic growth and innovation in the digital asset sector. The company’s asset base increased by 51% quarter-over-quarter, driven by strategic Bitcoin accumulation and Solana staking strategies. Neptune’s diversified revenue streams, including Bitcoin mining and DeFi activities, along with a new $20 million credit facility, position it for significant growth in 2025, as emphasized by CEO Cale Moodie.

Neptune Digital Assets Secures $20 Million Credit Facility for Growth

Neptune Digital Assets Corp. has secured a US$20 million credit facility from Sygnum, a global digital asset banking group. The funds will be used to expand Neptune’s digital asset portfolio, support strategic investments, and strengthen its balance sheet. This strategic borrowing relationship with Sygnum positions Neptune to grow its operations without issuing new equity, maintaining shareholder value while advancing the crypto ecosystem in a regulated environment.