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Neptune Digital Assets Corp. (TSE:NDA)
:NDA

Neptune Digital Assets (NDA) AI Stock Analysis

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Neptune Digital Assets

(NDA)

Rating:56Neutral
Price Target:
Neptune Digital Assets presents a mixed investment case. The company benefits from a solid balance sheet and strategic growth initiatives, such as increased Bitcoin and SpaceX holdings. However, operational challenges, negative cash flows, and high valuation pose risks. Technical indicators suggest stability, but investors should remain cautious due to the stock's high P/E ratio.
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.
Portfolio Growth
The private equity stake in SpaceX increased significantly, rising to C$8.1M from C$4.0M, indicating growth in its investment portfolio.
Strategic Investments
Neptune Digital Asset's investment-driven income strategy highlights a diversified revenue stream beyond traditional mining activities.
Negative Factors
Mining Revenue
The intention to decommission mining machines suggests a potential decline in mining revenue.
Revenue Performance
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 (NDA) vs. iShares MSCI Canada ETF (EWC)

Neptune Digital Assets Business Overview & Revenue Model

Company DescriptionNeptune Digital Assets Corp. builds, owns, and operates digital currency infrastructure assets in Canada. The company stakes and lends various digital currencies. It invests in digital asset ecosystem, including Bitcoin mining, staking cryptocurrencies, decentralized finance, yield farming, and liquidity mining, as well as operates blockchain nodes and other associated blockchain technology projects. The company is headquartered in Vancouver, Canada.
How the Company Makes MoneyNeptune Digital Assets generates revenue through a variety of channels within the digital finance ecosystem. The company's primary revenue streams include the appreciation and trading of its cryptocurrency holdings, staking, and yield generation from DeFi protocols. Additionally, Neptune Digital Assets may engage in mining operations, earning block rewards and transaction fees from validating transactions on various blockchain networks. The company also leverages strategic partnerships and collaborations within the blockchain industry to enhance its investment portfolio and maximize returns. By actively managing and optimizing its digital asset portfolio, Neptune Digital Assets seeks to capitalize on market opportunities and deliver value to its stakeholders.

Neptune Digital Assets Financial Statement Overview

Summary
Neptune Digital Assets has a robust balance sheet with low leverage and a high equity ratio, which is a significant strength. However, the company faces challenges with fluctuating revenues, negative cash flows, and operational inefficiencies, which are notable weaknesses.
Income Statement
45
Neutral
Neptune Digital Assets shows fluctuating revenue with a recent decline from $2.41M to $2.13M in TTM, indicating a negative revenue growth rate. The gross profit margin improved to 43% in TTM, but negative EBIT and EBITDA margins highlight operational challenges. The net profit margin improved significantly due to net income increases, but this volatility presents risks.
Balance Sheet
65
Positive
The company's balance sheet is strong with a high equity ratio of 93% in TTM, reflecting robust capitalization. The debt-to-equity ratio is low due to minimal debt, indicating low leverage. However, the return on equity is volatile, showing both losses and gains, which suggests potential instability in generating shareholder returns.
Cash Flow
40
Negative
Neptune Digital Assets faces cash flow challenges with negative operating and free cash flows in TTM. The operating cash flow to net income ratio is negative, indicating insufficient cash generation from operations relative to reported net income. Despite this, financing activities have been a significant source of cash, helping to mitigate some cash flow risks.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
2.13M2.41M2.32M4.19M358.70K149.07K
Gross Profit
916.44K796.91K11.76K-1.91M180.94K142.91K
EBIT
-1.17M-1.88M-2.02M8.26M-10.18M2.24M
EBITDA
-3.95M-1.60M-2.17M1.22M-6.83M-448.71K
Net Income Common Stockholders
3.32M2.43M-5.13M-21.07M-2.04M162.94K
Balance SheetCash, Cash Equivalents and Short-Term Investments
10.58M11.31M14.60M8.71M3.48M509.65K
Total Assets
72.24M50.69M32.94M36.04M54.68M3.80M
Total Debt
4.74M0.000.000.000.000.00
Net Debt
3.80M-3.59M-2.92M-4.76M-154.80K-117.56K
Total Liabilities
5.07M805.90K654.48K890.79K769.08K233.82K
Stockholders Equity
67.17M49.88M32.28M35.15M53.91M3.57M
Cash FlowFree Cash Flow
-2.80M-3.53M-3.73M-5.71M-2.48M-368.56K
Operating Cash Flow
-2.57M-3.06M-3.39M-460.90K-1.06M-368.56K
Investing Cash Flow
-1.51M3.93M1.47M5.06M-37.44M-114.46K
Financing Cash Flow
4.40M-200.13K81.25K0.0038.54M90.58K

Neptune Digital Assets Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.55
Price Trends
50DMA
1.64
Negative
100DMA
1.67
Negative
200DMA
1.16
Positive
Market Momentum
MACD
-0.02
Positive
RSI
42.39
Neutral
STOCH
7.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NDA, the sentiment is Neutral. The current price of 1.55 is below the 20-day moving average (MA) of 1.80, below the 50-day MA of 1.64, and above the 200-day MA of 1.16, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.39 is Neutral, neither overbought nor oversold. The STOCH value of 7.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:NDA.

Neptune Digital Assets Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
C$448.74M155.434.09%3189.96%
61
Neutral
$11.55B10.41-6.86%2.93%7.50%-8.30%
TSNDA
56
Neutral
C$204.62M59.625.61%-9.36%
52
Neutral
C$51.06M9.3342.14%109.65%-22.41%
$340.08M-2.15%
$35.11M-110.80%
$506.90M-16.30%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:NDA
Neptune Digital Assets
1.55
1.23
384.38%
TSE:HODL
Cypherpunk Holdings Inc
2.72
2.60
2166.67%
TSE:DEFI
DeFi Technologies
0.83
0.00
0.00%
HIVE
HIVE Digital Technologies
1.94
-1.03
-34.68%
BBKCF
BIGG Digital Assets
0.10
-0.03
-23.08%
BITF
Bitfarms
0.93
-1.52
-62.04%

Neptune Digital Assets Corporate Events

Business Operations and StrategyFinancial Disclosures
Neptune Digital Assets Achieves $17.4 Million Net Income and 43% Asset Growth
Positive
Apr 29, 2025

Neptune Digital Assets reported a comprehensive net income of $17.4 million and a 43% increase in assets for the six months ending February 28, 2025. The company has significantly grown its Bitcoin and Solana holdings, leveraging mining and staking strategies to enhance long-term value. Despite a decrease in total gross revenues compared to the previous year due to reduced mining revenues and altcoin values, Neptune continues to strategically expand its asset base, including investments in SpaceX, setting the stage for a strong growth phase and exciting opportunities for shareholders.

Spark’s Take on TSE:NDA Stock

According to Spark, TipRanks’ AI Analyst, TSE:NDA is a Neutral.

Neptune Digital Assets’ strong equity position is a key strength, but operational challenges like negative cash flows and a high valuation weigh heavily on the stock. Technical indicators suggest caution, and while corporate events show strategic growth, the overall outlook remains mixed.

To see Spark’s full report on TSE:NDA stock, click here.

Private Placements and FinancingBusiness Operations and Strategy
Neptune Digital Assets Increases Investment in SpaceX
Positive
Apr 22, 2025

Neptune Digital Assets Corp. has expanded its investment in SpaceX by acquiring an additional 5,405 shares for US$1 million, bringing its total holdings to 32,126 shares. This investment aligns with Neptune’s strategy of holding high-value, innovative assets, and reflects strong shareholder interest in expanding SpaceX exposure. The acquisition is seen as a strategic move to enhance Neptune’s asset portfolio, given SpaceX’s rapid valuation growth and transformative impact on technology.

Spark’s Take on TSE:NDA Stock

According to Spark, TipRanks’ AI Analyst, TSE:NDA is a Neutral.

Neptune Digital Assets benefits from a robust equity position and strategic growth initiatives, including Bitcoin accumulation and a share repurchase program. However, operational challenges, such as negative cash flows and high valuation, limit the stock’s attractiveness. The technical analysis suggests a cautious approach due to the current bearish trend.

To see Spark’s full report on TSE:NDA stock, click here.

Private Placements and FinancingBusiness Operations and Strategy
Neptune Digital Assets Boosts SpaceX Investment with Additional $1 Million Stake
Positive
Apr 22, 2025

Neptune Digital Assets Corp. has expanded its investment in SpaceX by acquiring an additional 5,405 shares for US$1 million, bringing its total holdings to 32,126 shares. This strategic move aligns with Neptune’s focus on high-value, innovative assets, reflecting shareholder interest and the company’s commitment to long-term value creation through pioneering technologies like blockchain, AI, and space exploration.

Spark’s Take on TSE:NDA Stock

According to Spark, TipRanks’ AI Analyst, TSE:NDA is a Neutral.

Neptune Digital Assets benefits from a robust equity position and strategic growth initiatives, including Bitcoin accumulation and a share repurchase program. However, operational challenges, such as negative cash flows and high valuation, limit the stock’s attractiveness. The technical analysis suggests a cautious approach due to the current bearish trend.

To see Spark’s full report on TSE:NDA stock, click here.

Business Operations and Strategy
Neptune Digital Assets Expands Bitcoin Treasury, Reinforces Strategic Growth
Positive
Apr 10, 2025

Neptune Digital Assets has expanded its Bitcoin treasury to 401 BTC, showcasing its commitment to long-term Bitcoin accumulation and digital asset growth. The company’s disciplined acquisition strategy, with an average Bitcoin purchase price significantly below the market average, underscores its value-conscious approach. Neptune employs a diverse strategy for Bitcoin accumulation, including dollar-cost averaging, opportunistic dip buying, and converting staking rewards into Bitcoin, ensuring steady growth in all economic conditions. This strategic move is part of Neptune’s broader effort to optimize treasury management and maximize shareholder value through prudent investments and operational efficiencies.

Spark’s Take on TSE:NDA Stock

According to Spark, TipRanks’ AI Analyst, TSE:NDA is a Neutral.

Neptune Digital Assets shows a strong equity position and strategic growth initiatives, but faces significant operational challenges with volatile revenue and negative cash flows. The high valuation and cautious technical indicators further temper enthusiasm.

To see Spark’s full report on TSE:NDA stock, click here.

Stock Buyback
Neptune Digital Assets Renews Share Repurchase Program
Positive
Apr 7, 2025

Neptune Digital Assets Corp. has announced the renewal of its Normal Course Issuer Bid (NCIB) to repurchase up to 11,328,130 common shares, representing 10% of its public float. This initiative, commencing on April 14, 2025, aims to enhance shareholder value and liquidity, reflecting the company’s belief that its market price may not fully reflect the shares’ value. The purchases will be executed through Haywood Securities Inc., with all acquired shares being cancelled.

Spark’s Take on TSE:NDA Stock

According to Spark, TipRanks’ AI Analyst, TSE:NDA is a Neutral.

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.

To see Spark’s full report on TSE:NDA stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
Neptune Digital Assets Strengthens Board with New Independent Director
Positive
Apr 1, 2025

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.

Business Operations and Strategy
Neptune Digital Assets Expands Solana Staking Through Partnership with Sol Strategies
Positive
Mar 3, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.