Liabilities Breakdown
50 M
Current Liabilities
31.5 M
Long-Term Liabilities
| Total Liabilities | 93.77 Million | |
| Current Liabilities | 50.04 Million | |
| Long-Term Liabilities | 31.54 Million |
What is August outlook for Cipher (USA Stocks:CIFR)?
 | By Rifka Kats | Macroaxis Story |
Cipher Mining, a key player in the Financial Technology (Fintech) & Infrastructure industry, recently experienced a 5 percent dip in share price, presenting a potential buying opportunity for investors. Despite reporting a net loss of $39.1M and an operating income loss of $72.5M, the company's strong balance sheet, with net tangible assets totaling $342.9M and total assets of $418.5M, demonstrates its financial resilience. Cipher Mining's capital expenditures of $227.9M and property, plant, and equipment net of $269.9M underscore its commitment to long-term growth. The company's net debt stands at a manageable $8.4M, while its total current liabilities are $40.3M. Analysts have an overall consensus of 'Buy' for the stock, with 4 strong buys and 1 buy out of 5 estimates. The estimated target price is $3.6, with a possible upside price of $12.61, indicating significant potential for capital appreciation. Despite the recent dip, Cipher Mining's robust financial position and positive analyst sentiment suggest a promising investment opportunity. The forthcoming quarterly report for Cipher Mining is anticipated to be released on August 8, 2023. Currently, the stock is witnessing trading activities that are above the average level. Given the enthusiasm many of us share for the capital markets sector, it's reasonable to categorize Cipher Mining as a distinctive alternative. Additionally, we assess Cipher Mining's capability to fulfill its long-term debt obligations, which include interest payments on debt, the ultimate principal payment on the debt, and any other fixed commitments such as lease payments.
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Reviewed by Michael Smolkin
Cipher Mining's recent 5 percent dip in share price may present an attractive buying opportunity for investors seeking to leverage the volatility in the fintech industry. Despite a reported loss of $39.1 million in net income from continuing operations, the company has a substantial capital surplus of $453.9 million and total assets valued at $418.5 million. With a standard deviation of 7.26, Cipher Mining's stock exhibits considerable price volatility, which could potentially offer significant upside for risk-tolerant investors. Furthermore, the company's total risk alpha of 0.92 and Jensen Alpha of 1.23 indicate that it may provide a higher return relative to its risk level.
Detailed assessment
Cipher Mining currently holds $20.32 million in liabilities, with a Debt to Equity (D/E) ratio of 0.02. This suggests that Cipher Mining may not be leveraging borrowing to its full advantage. The company's current ratio stands at 1.99, which is within the standard range for the sector. Debt can serve as a beneficial tool for Cipher Mining, provided it doesn't encounter difficulties in paying it off, either through new capital or free cash flow. If the company fails to meet its legal obligations to repay its debt, shareholders could potentially lose their entire investment. However, a more common scenario is when companies like Cipher Mining issue additional shares at discounted prices, thereby diluting the value of existing shares. In such cases, debt can be a superior tool for Cipher Mining to invest in growth at high rates of return. When evaluating Cipher Mining's use of debt, it's crucial to consider it in conjunction with cash and equity.Cipher Mining financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Cipher Mining, including all of Cipher Mining's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Cipher Mining assets, the company is considered highly leveraged. Understanding the composition and structure of overall Cipher Mining debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.Understanding Cipher Total Liabilities
Cipher Mining liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Cipher Mining has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Cipher Mining balance sheet include debt obligations and money owed to different Cipher Mining vendors, workers, and loan providers. Below is the chart of Cipher short long-term liabilities accounts currently reported on its balance sheet. You can use Cipher Mining financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Cipher Mining's Liquidity
Cipher Mining financial leverage refers to using borrowed capital as a funding source to finance Cipher Mining ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cipher Mining financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Cipher Mining's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Cipher Mining's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Cipher Mining's total debt and its cash.
What is driving Cipher Mining Investor Appetite?
The latest price spike of Cipher Mining could raise concerns from retail investors as the firm is trading at a share price of 4.91 on 2,287,948 in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in August. The stock standard deviation of daily returns for 90 days investing horizon is currently 7.09. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Cipher Mining partners.
Cipher Mining, a key player in the Financial Technology (Fintech) & Infrastructure industry, has recently seen a 5 percent dip in its share price, offering a potential buying opportunity for savvy investors. With a current ratio of 2.03X, the company appears to be in a strong financial position to cover its short-term obligations. The firm's end period cash flow stands at $11.9M, indicating solid liquidity.However, investors should also consider Cipher's operating income, which reveals a loss of $72.5M, and a hefty capital expenditure of $227.9M. The company's total operating expenses amount to $74.8M, with a significant portion of this attributed to selling, general and administrative expenses at $70.8M. Cipher's net debt stands at $8.4M, while its non-current liabilities total $35.2M. The company's beta of 2.29 suggests a higher volatility compared to the market, which could result in larger price swings. The probability of bankruptcy for the firm is 28.29%, a risk factor that potential investors should not overlook. Despite these challenges, Cipher Mining's shares are currently owned by institutions at a rate of 5.04%, indicating some level of confidence from institutional investors. With a target price of $3.8, there could be a potential upside of 14.76% for those willing to weather the storm. .
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