Did you know Marathon Digital Holdings (MARA), a top player in crypto mining, saw its stock jump 300% in just six months? This huge increase has many investors questioning its real value. Is it actually worth what the market says, or is a downturn coming? This deep dive into MARA’s stock will help you see if it’s a smart buy or a bubble about to pop. We’ll look at its value, recent performance, financial health, and market standing to find out: Is MARA’s stock over or undervalued?.
Looking at MARA’s stock rise might make you think you understand its value. But, there’s a lot more to it. Our full analysis will separate its real worth from its market price. This will give you the knowledge to decide wisely. Let’s reveal the true story behind MARA’s stock value!
Key Takeaways
- MARA’s stock price has increased by 300% in the last six months.
- This article provides an in-depth MARA Stock Analysis, examining whether it is overvalued or undervalued.
- We will look at MARA’s recent performance, financial strength, and market position to determine its true value.
- You will discover the intrinsic value of MARA’s stock and how it compares to the current market price.
- Our objective is to help you make an informed investment decision.
Introduction to MARA Stock
Marathon Digital Holdings, Inc. is based in Las Vegas, Nevada. It has become a major force in digital asset technology. Focusing on crypto mining, MARA has caught a lot of attention in the stock world. This MARA Stock Market Analysis will cover the company, how it operates, and its performance in the market.
Company Overview
Marathon Digital Holdings started trading on the NASDAQ in 2014. Today, it boasts a market value of around $4.6 billion2. Investors looking into MARA should know it focuses on blockchain tech. It mines Bitcoin in Montana using powerful ASIC miners2. This technique is key to their growth in the MARA Digital Currency Blockchain world.
Business Model
MARA mines Bitcoin on a large scale. It uses efficient ASIC miners to boost its computing power and mining output. This approach not only grows its digital currency holdings but also makes it a blockchain technology leader. It’s important to get the details of their operations for a deep MARA Stock Market Analysis2.
Looking at MARA’s market cap and business model offers insights into its value and profit future2. For example, Marathon Digital’s revenue shot up by 78%, hitting $145 million in Q2 2024. However, their net loss increased to $200 million, up from a $9 million loss the year before2.
Recent Performance Analysis
Analyzing recent performance helps us understand the MARA Stock Forecast and MARA Stock Price Prediction. Marathon Digital Holdings Inc has seen a lot of ups and downs. It recently saw a daily gain of 11.67%3. But over the last three months, it faced a loss of 26.49%3. This shows both the risks and chances for investors in the near future.
The company is valued at $2.30 billion3 right now. Its GF Value is $24.21, much more than its current price of $10.243. This difference suggests the stock might be undervalued. The estimated DCF value stands at $38.64 per share4, supporting this view.
The forecasted cash flows of Marathon Digital are impressive, projected at $9.7 billion4. Its cash-to-debt ratio is 0.313. These key numbers help shape the forecast for MARA stock. They give a peek into what might come next.
The predicted operating income ranges from $360.7 million to $1.1 billion4. The company’s Free Cash Flow is also expected to be substantial. It may vary from $344.7 million to $844.3 million4. These figures are promising. They indicate strong operational health and potential for growth.
Historical Stock Performance
The MARA Historical Stock Performance shows key trends essential for investors. In the last five years, MARA stock surged by 817%. This highlights the company’s growth in the short to medium term. The increase reflects good market conditions and Marathon Digital Holdings’ smart decisions5.
5-Year Performance
Looking at the 5-Year Performance of MARA stock helps understand its market value. Its 817% rise shows the high returns from the booming crypto markets and Marathon Digital Holdings’ expansion5. This era shows MARA Stock Evaluation benefiting from the growing cryptocurrency mining sector.
10-Year Performance
The 10-Year Performance had ups and downs. Despite recent gains, there’s been a decade-long decline. This shows the crypto industry’s volatility and market changes. Investors should remember this when reviewing MARA Historical Stock Performance for long-term choices4.
Reviewing MARA stock’s history over five and ten years offers deep insights. It’s crucial for investors wanting to know Marathon Digital Holdings’ future in a fast-changing, competitive field3.
Is MARA Stock Overvalued or Undervalued?
Marathon Digital Holdings is a big name in Bitcoin mining. This makes people wonder if MARA stock is too high or too low in value6. The current price is $16.41. For investors, knowing its real worth is key2.
Current Market Price
MARA stock closed at $18.89 recently but dropped slightly by -0.74%6. With a value of 4.6 billion dollars, its impact on the crypto mining world is clear62.
Intrinsic Value Calculation
To see if MARA is pricey or a bargain, we look at its core analysis7. The stock’s true value is pegged at $33.45. This suggests it is undervalued by about 51%2. These figures come from averaging DCF and Relative values, showing MARA has room to grow2.
Marathon is doing great in Bitcoin mining, with revenues up by 78% at $145 million in Q2 20242. The solid performance and intrinsic value point to great growth potential. Yet, smart investors should look at all angles, both basic and technical analyses7.
Intrinsic Value vs. Market Price
When we look at MARA’s intrinsic value versus its market price, we uncover an investment chance. The detailed MARA Stock Analysis shows it’s valued 31.5% lower than it should be8. This means the market might not fully see MARA’s true worth. This could be the right time for investors to jump in.
MARA stands out with its strong numbers. It has a high Price to Earnings ratio of 51.81X. It also beats others with its Profit Margin of 0.51%9. The stock’s Price to Sales ratio is 8.38X, showing its revenue strength compared to its share price9.
This past year has seen the stock drop by 45.98%8. Yet, its value should be between USD 8.44 and USD 20.0210. The current prices suggest it might be undervalued. The future price range is predicted to be from USD 10.23 to USD 21.8110.
Marathon Digital Holdings also has an ROE of 0.18, way above the norm9. With USD 86.46 million in cash and a Current Ratio of 4.02X, the company is in a strong financial position9. Despite market issues, the low trading price versus its actual value shows great potential10.
Further analysis on MARA shows a big chance for growth. Analysts aim for a price of USD 21.3810, higher than its current USD 16.41. With 57.0% of its shares held by big players like Blackrock Inc and Vanguard Group Inc9, investor trust is strong.
A deep dive into MARA’s numbers and market opinion tells a powerful story of potential underpricing. With earnings expected to fall by 31.5% yearly for three years8, the current pricing gap might hint at opportunities for gain. It’s crucial for investors to consider this price difference carefully when deciding to buy.
Marathon Digital Holdings Financial Strength
Understanding Marathon Digital Holdings’ financial health is key in a cutthroat digital asset market. It’s crucial to look at their MARA Cash-to-Debt Ratio and revenue increases. This forms the backbone of a solid Marathon Digital Holdings Financial Analysis.
Cash-to-Debt Ratio
The MARA Cash-to-Debt Ratio is quite low at 0.31, making it vital to carefully examine the company’s finances. This ratio is better understood with a 1.16% debt-to-equity score and an Altman Z-Score of 6.912. They also have $86.46 million in cash, which provides a cushion against fiscal challenges2.
Revenue Analysis
Last fiscal year, Marathon Digital Holdings boosted its revenue to $387.51 million11. In the second quarter of 2024, its revenue jumped by 78% to $145 million. However, its net loss increased to $200 million from $9 million the previous year2.
Despite this, the company’s profitability score stands at 40/100. This is due to a 138% revenue growth rate over three years and a 37% future growth forecast2. Their total assets have reached $1.99 billion11, showing strength in their financial base through challenging times.
Profitability and Growth Prospects
Marathon Digital Holdings draws investors with its rapid growth. It’s seen an 80% yearly revenue growth over three years. In Q2 2024, revenue jumped to $145 million, a 78% increase. This was thanks to higher bitcoin prices but was affected by increased net losses of $200 million. Losses came from equipment failures and less bitcoin production after the halving2.
While its growth is notable, understanding its profitability and solvency is key. Marathon has a profitability score of 40/100 and a solvency score of 68/100. These numbers show a strong three-year revenue increase of 138% and an expected growth of 37%. Its low debt-to-equity ratio also suggests solid debt management, giving it a stable financial base2.
The MARA Stock Forecast seems optimistic. Analysts set a one-year target at $22.5. Predictions suggest a return between 5% and 73%, depending on different factors2. A Base Case scenario values one MARA stock at $33.45. This indicates a 51% undervaluation from its current price of $16.412.
Here is a detailed comparison for your reference:
| Metric | Value |
|---|---|
| Quarterly Earnings Growth | 76.4% |
| EPS Estimate Next Quarter | ($0.19) |
| EPS Estimate Current Year | $0.81 |
| EPS Estimate Next Year | $0.13 |
| Wall Street Target Price | $21.38 |
| 200 Day MA | $19.8031 |
| Short Percent | 30.13% |
| Short Ratio | 2.35 |
| Shares Short prior month | 81.5 million |
| 50 Day MA | $17.8672 |
| Marathon Digital Implied Volatility | 88.77% |
| After-Hype Price Prediction | $16.02 |
| Intrinsic Valuation (Low – Real – High) | $8.44 – $14.23 – $20.02 |
| Analysts Consensus Target Price (Low – Target – High) | $12.10 – $13.30 – $14.76 |
| Earnings Estimates Range | ($0.4) to $1.04 |
Wall Street Analysts’ Predictions for MARA Stock
Wall Street analysts see a bright future for MARA stock. Their forecasts suggest an average price target of $22.50 for the next year. They believe it could go as high as $28.35 or as low as $17.172.
Price Targets
Analysts give varying predictions on MARA stock, important for investors. They provide an average price target and a range, showing how the stock might perform. With Marathon Digital Holdings valued at 4.6 billion USD, these targets suggest significant growth potential2.
Earnings Forecasts
MARA’s earnings outlook shows promising revenue growth and profit forecasts. Despite a revenue increase to $145 million, its net loss reached $200 million due to some challenges2. Yet, analysts believe improved revenue and operational gains will drive MARA’s growth in the long run.
The 138% rise in revenue over three years and a strong Altman Z-Score of 6.91 highlight MARA’s good health2. These signs boost investor confidence, possibly leading to higher market values.
Growth Metrics for MARA
Marathon Digital Holdings is making big moves in the cryptocurrency mining world. They’ve boosted their operational hash rate to 31.5 exahash. This shows they’re serious about being at the top of the game2. Their revenue jumped to $145 million in Q2 2024, which is a 78% increase2. But, their net loss has grown to $200 million from a previous $9 million2
Investors looking into MARA need to understand these numbers well. The DCF value of one MARA stock is at $38.64. This means it’s undervalued by 58% compared to its market price4. Also, the future cash flows of Marathon Digital are worth $9.7 billion. This points to a bright future for the company4.
The company’s solvency score is 68 out of 100. This shows they’re doing okay financially2. But, their profitability score is low at 3 out of 10, and their operating margin is at -45.13%3. Still, it’s good to know they’ve had an 80% revenue growth over the last three years3.
As Marathon continues to grow, these metrics are key for shaping how investors see them. They have a stability rating of 5 out of 103. Their cash-to-debt ratio is 0.31, showing they’re managing their debts cautiously3.
| Growth Metric | Value |
|---|---|
| Operational Hash Rate | 31.5 exahash |
| Revenue Increase | 78% to $145 million |
| Net Loss | $200 million |
| DCF Value per Share | $38.64 |
| Undervaluation | 58% |
| Cash-to-Debt Ratio | 0.31 |
| 3-Year Revenue Growth | 80% |
In summary, anyone studying MARA’s growth will get a full picture from these statistics and performance measures. These details will surely help make smart investment choices.
Risks Associated with MARA Stock
Investing in MARA stock comes with big risks that need careful thinking. The main worry is the unpredictable crypto market, which has a big effect on Marathon Digital Holdings’ profits. With a market value of 4.6 billion USD, it’s key to know how changes in bitcoin prices can hugely affect its money situation2.
Another big concern is how the company operates. Recently, Marathon Digital saw its losses grow to 200 million USD from a previous 9 million USD, even though its income went up by 78% in Q2 20242. Managing their increased hash rate, now at 31.5 exahash, presents big challenges2.
Changing rules add more risk for Marathon Digital Holdings. Different places changing their rules can make it hard to know what to expect. This makes it very important to have a good system to handle legal problems.
It’s also crucial to look at the company’s financial wellbeing. With scores of 68/100 for how it can pay debts and 40/100 for making money, there are risky areas investors need to watch2. These scores help figure out if their money placed in the company will grow over time.
Lastly, experts believe MARA stock will go up, predicting an average price of 22.5 USD in one year2. But, it’s still seen as 51% too cheap compared to its real value of 33.45 USD, which makes choosing to invest harderMarathon Digital Holdings Investment Risks2.
Competitive Landscape
Marathon Digital Holdings is in a tough race with many competitors. It works in a field where new and old companies fight for the top spot. To truly get MARA’s spot in the market and know its main rivals, we need to look at its current state and what makes it stand out.
Key Competitors
MARA faces competition from big names like Riot Platforms Inc., and Hut 8 Mining Corp. Bitfarms Ltd., and HIVE Blockchain Technologies Ltd. also challenge MARA. Each company has its strengths and weaknesses in the crypto mining world. For example, Coinbase Global Inc. is a huge name with over 68 million users, showing its power in digital assets12.
Other companies like Natural Resource Partners L.P. (NYSE: NRP) and TravelCenters of America Inc. (NASDAQ: TA) are in different fields but show similar trends13. The Chicago Mercantile Exchange (CME), part of CME Group, also impacts the crypto market with its futures contracts12.
Market Position
In 2023, Marathon Digital Holdings achieved great success. Its hash rate saw a 253% jump, producing 12,852 Bitcoins14. This led to record-breaking revenues of $157 million in the fourth quarter, helped by more Bitcoin production and high prices14.
The company earned $152 million in the final quarter, totaling $261 million for the year. These numbers highlight Marathon’s strong position in the market14. Holding 15,126 Bitcoins worth $640 million and having over $1 billion in liquidity shows Marathon’s ability to thrive in the digital assets world14.
MARA Stock News and Updates
For investors, it’s key to stay updated on Marathon Digital Holdings Updates. A recent update on MARA Stock News showed a big leap in Q2 2024. Revenue soared by 78%, hitting $145 million. However, the net loss also grew to $200 million2. Even so, Marathon Digital is sticking to its HODL strategy and holding onto significant bitcoin assets2.
The current price of MARA stock is 16.41 USD. Its market cap stands at 4.6 billion USD2. One MARA stock’s base case intrinsic value is at 33.45 USD. This shows the stock might be 51% undervalued2. Wall Street’s 1-year target for MARA averages 22.5 USD. This includes a low of 17.17 USD and a high of 28.35 USD2.
Marathon Digital’s financial health could be stronger. Its cash-to-debt ratio is 0.31, lower than many others in its industry3. The company has a financial strength rating of 5 out of 10. Its operating margin is -45.13%, showing profitability issues3. Also, its profitability score is 3 out of 10, and its ROIC of -9.09 is below its WACC of 35.143.
The company is growing fast, with an 80% 3-year revenue growth rate average3. Its stock can be quite volatile, showing a daily gain of 11.67%. Yet, over the past 3 months, it saw a drop of 26.49%3.
Focusing on updates from MARA Stock News and Marathon Digital Holdings Updates is wise. This way, you can stay ahead in a fluctuating market and make well-informed choices.
Evaluating MARA’s Valuation Methods
Evaluating MARA Stock Valuation needs a detailed approach. One key method is the Discounted Cash Flow (DCF) model. It values one MARA stock at 38.64 USD, showing it could be undervalued by 58%4. This approach finds Marathon Digital Holdings Inc’s future cash value at 9.7 billion USD. Then, it divides this by the total shares4.
In 2023, Marathon Digital Holdings made a record 12,852 Bitcoins. This output is crucial for the company’s valuation as it highlights efficiency14. The process of calculating the company’s real worth includes checking these results. It also looks at growth opportunities and costs14.
Revenue for Q4 2023 hit $157 million. This helped achieve an annual net income of $261 million14. When we add the Adjusted EBITDA of $420 million, we get a full picture of its financial health14. These details are crucial for evaluating MARA’s stock correctly.
The company plans to increase its hash rate by over 35% in 2024. Their goal is to reach 50 exahash by the end of 202514. By preparing for different future outcomes, investors gain a clearer picture. They can decide wisely. For Q4 2023, hosting and energy costs were $75 million. This highlights the need to cut down on spending14.
To stay current with MARA and market trends, visit StockTwits and similar sites. This way, you’ll make smart choices regarding MARA shares.
Future Outlook for Marathon Digital Holdings
Looking into Marathon Digital Holdings Growth, sound earnings projections are essential. Marathon Digital’s earnings growth is at 0.764, showing strong growth ahead10. Analysts set Marathon Digital’s one-year price target at an average of $22.5. This could rise up to 73% to $28.352. These figures are key in evaluating MARA Future Outlook.
Earnings Projections
When discussing Marathon Digital Holdings Growth, noting its revenue increase is crucial. For Q2 2024, its revenue jumped 78% to $145 million2. Despite a bigger net loss of $200 million due to various challenges, the outlook for recovery remains positive2.
Marathon Digital’s earnings estimates range from -0.4 to 1.0410. These numbers, alongside its current market price of $16.41 and valuation estimates, hint at a promising future10. This data shows a diverse and growing outlook.
Strategic Initiatives
Crucial to its future, Marathon Digital is pushing into energy projects and AI10. Its focus on innovation helps keep its edge in the digital currency world. They have also boosted their operational hash rate to 31.5 exahash, staying ahead technologically2. These aspects are vital for understanding MARA Future Outlook and its market sustainability.
About 57.0% of its shares are owned by institutes10. Marathon Digital aims to use these partnerships to fund growth and enhance operations. This opens up exciting growth opportunities for the future.
Comparing MARA’s ROIC vs. WACC
Looking at Marathon Digital Holdings, comparing its Return on Invested Capital (ROIC) with its Weighted Average Cost of Capital (WACC) tells us a lot. The *MARA ROIC vs WACC Analysis* reveals the company’s ROIC is consistently lower than its WACC15. This means Marathon Digital Holdings hasn’t made enough from its investments to pay for its capital15.
This situation is a red flag for investors. A ROIC less than WACC means the company is losing value, possibly affecting future capital decisions. Specifically, *Marathon Digital Holdings Investment Efficiency* shows a decreasing ROIC against a stable WACC15. This mismatch may lead to lower stock values over time15.
Industry benchmarks make it clear Marathon Digital Holdings is not doing as well as its competitors in earning investment returns. Studies of competitors reveal others have found a better balance between ROIC and WACC, which means they’re making investments more efficiently15.
The *MARA ROIC vs WACC Analysis* shows a concerning trend: despite a strong market cap of $4.6 billion USD, its stock’s DCF valuation is just $38.64 USD, suggesting a potential overvaluation4. Moreover, with the company’s Present Value of future cash flows at $9.7 billion USD, inefficiencies seem evident4.
When examining these numbers, it’s important not to just look at them individually. Consider the relationship between ROIC and WACC. Understanding this ratio helps gauge *Marathon Digital Holdings Investment Efficiency*, crucial for well-informed investment choices.
Conclusion
Our detailed review of Marathon Digital Holdings Inc. tells a story of underappreciated value. The stock’s true worth is seen at $33.45, which is far above its current market cap of $4.6 billion2. This gap suggests a great chance for those ready to face its risks.
The financial performance of MARA is a blend of good and bad. Revenue soared by 78% to $145 million in the second quarter of 2024. Yet, the loss grew to $200 million from $9 million2. This shows the company’s growth, paired with increasing operational hash rate to 31.5 exahash2, is turbulent but promising. Despite low profitability, its solvency remains decent at 68/1002.
Market experts share a cautiously optimistic view, setting the average price target at $22.5. Predictions range from $17.17 to $28.352. This mixed outlook underlines the opportunities and hurdles within MARA’s path. We advise potential investors to consider these aspects carefully while making decisions.
