IREN IREN Limited - Fundamental Analysis
BEARISH
IREN Stock | Fundamental Analysis & Investment Insights
NASDAQ
•
Financial Services
•
Capital Markets
Current Price
$46.37
Analyst Target
$76.0
+63.9% Upside
52W High
$76.87
52W Low
$5.12
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
IREN Limited presents a deeply contradictory profile: explosive revenue growth of 355.4% YoY and a 3Y return of +1824.1% signal strong market momentum and potential disruption, yet fundamental red flags abound. The company reports a negative operating margin (-25.02%) and ROA of -0.01%, indicating severe profitability challenges despite a 75.99% profit margin—likely an accounting anomaly or non-operational gain. Valuation metrics are stretched, with a P/E of 26.65 and a Forward P/E of 136.38, far exceeding peers like BLK and SCHW, while insiders have sold $66.26M in shares recently, signaling concern at current levels. Analysts maintain a 'buy' recommendation with a $76.00 target, implying 64% upside, but the lack of earnings beats, negative operating leverage, and deteriorating price action (-31.8% over 1M) suggest significant risk in extrapolating recent performance.
Key Strengths
Exceptional revenue growth of 355.4% YoY, significantly outpacing sector average of 15.80%
High gross margin of 69.82%, indicating strong pricing power or low variable costs
Strong return on equity (ROE) of 26.12%, above sector average of 50.32% but inconsistent with other profitability metrics
Low debt/equity ratio of 0.34, suggesting conservative capital structure relative to sector average of 0.99
Exceptional 3-year total return of +1824.1%, reflecting strong investor sentiment and market adoption
Key Risks
Operating margin of -25.02% indicates core business operations are deeply unprofitable despite high gross and net margins
Forward P/E of 136.38 is extremely elevated, implying fragile growth expectations and high vulnerability to deceleration
Negative ROA of -0.01% suggests inefficient use of assets, conflicting with high ROE and raising balance sheet concerns
Insiders have sold $66.26M in stock with zero buys in the last 6 months, a strong bearish signal from management
Price has corrected sharply—down 31.8% over 1 month and 25.7% over 1 week—after a parabolic run, indicating potential bubble dynamics
AI Fair Value Estimate
Based on comprehensive analysis
$28.5
-38.5% below current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
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Insider Trading & Analyst Ratings
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