Fact based stock research
Iris Energy (NasdaqGS:IREN)

AU0000185993

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Iris Energy stock research in summary

irisenergy.co

ANALYSIS: With an Obermatt Combined Rank of 62 (better than 62% compared with investment alternatives), Iris Energy (Application Software, Australia) shares have above-average financial characteristics compared with similar stocks. Shares of Iris Energy are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives), and are riskily financed (Safety Rank of 32, which means above-average debt burdens) but show above-average growth (Growth Rank of 91). ...read more

RECOMMENDATION: A Combined Rank of 62, is a buy recommendation based on Iris Energy's financial characteristics. As the company Iris Energy shows low value with an Obermatt Value Rank of 45 (55% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 91% of comparable companies (Obermatt Growth Rank is 91). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 32 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Iris Energy, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	45
Growth Rank	91
Safety Rank	32
Combined Rank	62

Country	Australia
Industry	Application Software
Index	NASDAQ
Size class	Small

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Iris Energy

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	n/a	69	49	45
GROWTH
GROWTH	n/a	67	79	91
SAFETY
SAFETY	n/a	1	76	32
SENTIMENT
SENTIMENT	n/a	90	65	^new
360° VIEW
360° VIEW	n/a	74	91	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Iris Energy is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	n/a	69	49	45
GROWTH
GROWTH	n/a	67	79	91
SAFETY
SAFETY	n/a	1	76	32
COMBINED
COMBINED	n/a	46	91	62

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Iris Energy the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), Iris Energy shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Iris Energy. Price-to-Profit (also referred to as price-earnings, P/E) is 74 which means that the stock price compared with what market professionals expect for future profits is lower than for 74% of comparable companies, indicating a good value concerning Iris Energy's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 65, which means that the stock price is lower as regards to invested capital than for 65% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 64% of alternatives (only 36% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 99% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on Iris Energy's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	n/a	84	59	36
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	n/a	100	57	74
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	n/a	41	83	65
DIVIDEND YIELD
DIVIDEND YIELD	n/a	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	n/a	69	49	45

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Iris Energy; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 91 (better than 91% compared with alternatives) for 2024, Iris Energy shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Iris Energy. Sales Growth has a rank of 100 which means that currently, professionals expect the company to grow more than 100% of its competitors. Both Profit Growth, with a rank of 98, and Stock Returns, with a rank of 95, are also above average. But Capital Growth only has a rank of 4, which means that, currently, professionals expect the company to grow its invested capital less than 96% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 91, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	n/a	100	100	100
PROFIT GROWTH
PROFIT GROWTH	n/a	100	82	98
CAPITAL GROWTH
CAPITAL GROWTH	n/a	6	1	4
STOCK RETURNS
STOCK RETURNS	n/a	27	100	95
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	n/a	67	79	91

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Iris Energy.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 32 (better than 32% compared with alternatives), the company Iris Energy has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Iris Energy is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Iris Energy and the other two below average. Leverage is at a rank of 97 meaning the company has a below-average debt-to-equity ratio. It has less debt than 97% of its competitors.Refinancing is at a rank of 13, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 87% of its competitors. Liquidity is at a rank of 6, meaning that the company generates less profit to service its debt than 94% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 32 (worse than 68% compared with alternatives), Iris Energy has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Iris Energy are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Iris Energy and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	n/a	1	93	97
REFINANCING
REFINANCING	n/a	1	61	13
LIQUIDITY
LIQUIDITY	n/a	15	28	6
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	n/a	1	76	32

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Iris Energy and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	93	89	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	15	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	60	47	^new
MARKET PULSE
MARKET PULSE	n/a	62	69	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	90	65	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Iris Energy.
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