An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Note: there are many factors that can influence the longer-term number, not the least of which is the overall state of the economy (recession will reduce this number for example, while a recovery will inflate it), which can skew comparisons when looking out over shorter time frames. SDIG is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (3.7x). Long Term Liabilities: SDIG's short term assets ($50.6M) exceed its long term liabilities ($34.0M). (-5.26%) Zacks' proprietary data indicates that Stronghold Digital Mining, Inc. is currently rated as a Zacks Rank 3 and we are expecting an inline return from the SDIG shares relative to the market in the next few months. Once again, cash flow is net income plus depreciation and other non-cash charges. But, typically, an aggressive growth trader will be interested in the higher growth rates. Stronghold-specific fundamentals will also determine how much SDIG stock will be worth. Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on mining Bitcoin in the United States. If a company's net margin is 15%, for example, that means its net income (or profit) is 15 cents for every $1 of sales the company makes. SDIG is expected to become profitable in the next 3 years. These returns cover a period from January 1, 1988 through June 6, 2022. So, as with other valuation metrics, it's a good idea to compare it to its relevant industry. Seeing a company's projected sales growth instantly tells you what the outlook is for their products and services. Dilution of Shares: SDIG only recently listed within the past 12 months. Please note all regulatory considerations regarding the presentation of fees must be taken into account. (-27.7%), as it is currently unprofitable. Copyright 2022 Market Realist. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. The Price to Cash Flow ratio or P/CF is price divided by its cash flow per share. Which metric is best to use when looking at relative valuation for SDIG? Historical EPS Growth Rate looks at the average annual (trailing 12 months) EPS growth rate over the last 3-5 years of actual earnings. Get the FREE 14-day TRIAL SUBSCRIPTION with no further commitment. It raised about $130 million in the IPO and it plans to use the money to purchase more miners and energy-generating assets to increase its capacity and electricity output. It's calculated as earnings divided by price. Bitcoin is expected to continue rising amid its growing adoption as a means of payment, investment, and store of value. This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors. Short Term Liabilities: SDIG's short term assets ($50.6M) do not cover its short term liabilities ($124.4M). As a point of reference, over the last 10 years, the median sales growth for the stocks in the S&P 500 was 14%. Any other use, including for any commercial purposes, is strictly prohibited without our express prior written consent. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days. Who are the major shareholders and have insiders been buying or selling? Price-To-Sales vs Fair Ratio: SDIG is good value based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (1.9x). Bitcoin trends will greatly influence SDIG stock in the future. For one, part of trading is being able to get in and out of a stock easily. The Stronghold Digital Mining, Inc. stock price gained 2.03% on the last trading day (Friday, 29th Jul 2022), rising from $2.46 to $2.51. Unable to evaluate SDIG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. The stock lies in the middle of a very wide and falling trend in the short term and further fall within the trend is signaled. Enterprise Value / Earnings Before Interest, Taxes, Depreciation and Amortization is a valuation metric used to measure a company's value and is helpful in comparing one stock to another. Cash Flow Coverage: Unable to calculate sustainability of dividends as SDIG has not reported any payouts. A higher number is better than a lower one as it shows how effective a company is at generating revenue from its assets. Mr. Gregory A. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock. This causes a divergence between volume and price and it may be an early warning. Stronghold priced its stock at $19 for the public offering, above the marketed range of $16$18. A rising stock on above average volume is typically a bullish sign whereas a declining stock on above average volume is typically bearish. The Gross Law Firm issues the following notice to shareholders of Stronghold Digital Mining, Inc. Cash flow can be found on the cash flow statement. #7519 as hold candidate. This includes personalizing content and advertising. The most common way this ratio is used is to compare it to other stocks and to compare it to the 10 Year T-Bill. Moreover, when comparing stocks in different industries, it can become even more important to look at the relative measures, since different stocks in different industries have different values that are considered normal. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score. This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". Certain assumptions have been made for modeling purposes and are unlikely to be realized. Current Cash Flow Growth measures the percent change in the year over year Cash Flow. The Price to Earnings ratio or P/E is price divided by earnings. Beard, also known as Greg, serves as Chief Executive Officer, President and Co-Chairman of the Board at Stronghold Digital Mining, Inc. since March 2021. Further fall is indicated until a new bottom pivot has been found. That does not mean that all companies with large growth rates will have a favorable Growth Score. Aside from using absolute numbers, however, you can also find value by comparing the P/E ratio to its relevant industry and its peers. Insufficient data to determine how SDIG performed against the. It takes the consensus estimate for the current fiscal year (F1) divided by the EPS for the last completed fiscal year (F0) (actual if reported, the consensus if not). Like most ratios, this number will vary from industry to industry. In this case, it's the cash flow growth that's being looked at. People may receive compensation for some links to products and services on this website. Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months. There is a sell signal from a pivot top found 7 days ago.). There are many reasons to believe Bitcoin will continue to rise. Copyright 2022 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606. Quality Earnings: SDIG is currently unprofitable. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Since cash can't be manipulated like earnings can, it's a preferred metric for analysts. The predicted opening price is based on yesterday's movements between high, low, and the closing price. For example, a regional bank would be classified in the Finance Sector. Experienced Board: SDIG's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board. Therefore, Stronghold has a promising outlook. On further gains, the stock will meet resistance from the short-term moving average at approximately $2.63. Mr. Gregory A. Net Margin is defined as net income divided by sales. For example, a P/S ratio of 0.5 means you're paying 50 cents for every $1 of sales the company makes. Others look for those that have lagged the market, believing those are the ones ripe for the biggest increases to come. This is a longer-term price change metric. ROE values, like other values, can vary significantly from one industry to another. This item is updated at 9 pm EST each day. This is a medium-term price change metric. Stronghold Digital Mining (SDIG) has joined the list of publicly traded Bitcoin mining companies. This longer-term historical perspective lets the user see how a company has grown over time. This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. to move between $2.13 and $2.89, It offered 6.7 million shares, more than the 5.8 million shares it initially planned to sell in what is now clearly an oversubscribed IPO. This is also commonly referred to as the Asset Utilization ratio. While a P/B of less than 3 would mean it's trading at a discount to the market, different industries have different median P/B values. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. The change is made all the more important the closer proximity it is to the stock's earnings date since it is generally believed that the most recent estimates are the most accurate since it's using the most up-to-date information leading up to the report. Like earnings, a higher growth rate is better than a lower growth rate. A change in margin can reflect either a change in business conditions, or a company's cost controls, or both. For example, a company with a P/E ratio of 25 and a growth rate of 20% would have a PEG ratio of 1.25 (25 / 20 = 1.25). Since 1988 it has more than doubled the S&P 500 with an average gain of +24.90% per year. Its $28.90 closing price was 10 percent below its debut peak. SDIG's short term assets ($50.6M) exceed its. Stronghold's revenue more than tripled year-over-year to $7.9 million in the first half of 2021 from $2.2 million. A higher number means the more debt a company has compared to its capital structure. While the F1 consensus estimate and revision is a key driver of stock prices, the Q1 consensus is an important item as well, especially over the short-term, and particularly as a stock approaches its earnings date.