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RIOT Blockchain: Stay Away

4:39 pm ET, 11 Dec 2017

blockchain

Heavy trading in Riot Blockchain (NASDAQ: RIOT) calls, as investors are increasingly interested in crypto-currency plays.  The stock is now trading at over $23.00 and record volume of shares (up by more than 45%). 

There are a few things that concern us about RIOT: 

  • Low return on equity.  Return on equity reveals how much profit a company generates with the money shareholders have invested. Typically, higher return on equity is better for future stock performance.
  • Book value is low.  Companies with high book values and low stock prices can be considered as cushioned against severe declines by their intrinsic liquidation value. We compare the accounting value of a company to its current stock price in the form of a book value-to-price ratio.
  • Cash flow is weak.  Positive cash flow gives a company funds for internal expansion, acquisitions, and dividend payments. The lack of it constrains further company expansion.  

RIOT Price/Book now stands at 6.61, which we believe is very high. 

RIOT book value book ratio

Riot was formerly a life sciences company, that made a switch to blockchain a few months ago.  Since then the Company's value sky-rocketed.   

Riot paid about $12 million for Kairos Global, a two-week-old crypto-mining business that owned only about $1.9 million in crypto mining assets.  Kairos is based in Reno, Nevada.  

Riot had $13M in cash as of September 30 with a net loss of ($5.3M) for that quarter.  If you're enthusiastic about blockchain, our recommendation is to look at other options.

Riot Blockchain, Inc (RIOT) Stock Guide

Updated at: 8:18 am ET, 14 Nov 2020

Before we start: if you're looking for RIOT stock price, you can quickly find it out by visiting Finny and typing "RIOT quote". If you're looking for a quick scoop on RIOT stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "RIOT". You'll get all this info in one place. Or you can just type "RIOT news" to get the latest stock news.

Looking to buy or sell Riot Blockchain, Inc (RIOT)? Interested in getting the full scoop on RIOT, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this RIOT stock guide, we'll address key questions about RIOT, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are RIOT earnings?
2. When is RIOT earnings date?
3. RIOT buy or sell? What is RIOT Finny Score?
4. What are the reasons to buy RIOT? Why should I buy RIOT stock?
5. What are the reasons to sell RIOT? Why should I sell RIOT stock?
6. What are RIOT key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are RIOT earnings?

RIOT trailing 12-month earnings per share (EPS) is -$0.72.

2. When is RIOT earnings date?

RIOT earnings date is November 09, 2020.

Analysis

3. RIOT buy or sell? What is RIOT Finny Score?

#{finnyScore:14}Our quantitative analysis shows 1 reason to buy and 6 reasons to sell RIOT, resulting in Finny Score of 14.

4. What are the reasons to buy RIOT? Why should I buy RIOT stock?

Here are the reasons to buy RIOT stock:

5. What are the reasons to sell RIOT? Why should I sell RIOT stock?

Let's look at the reasons to sell RIOT stock (i.e., the bear case):

  • RIOT stock price ($3.98) is close to the 52-week high ($4.18). Perhaps now is a good time to sell? See RIOT price chart.
  • RIOT quarterly revenue growth was -21.30%, lower than the industry and sector average revenue growth (0.81% and 1.02%, respectively). See RIOT revenue growth chart.
  • RIOT profitability is declining. The YoY profit margin change was -3332.96 percentage points. See RIOT profitability chart.
  • RIOT Price/Sales ratio is 22.01, which is high compared to its industry peers’ P/S ratios. See RIOT forward Price/Sales ratio chart.
  • RIOT short share of float is 18.37%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See RIOT short share of float chart.
  • RIOT Enterprise Value/Revenue multiple is 20.07, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See RIOT Enterprise Value/Revenue chart.

Key Stats

6. What are RIOT key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for RIOT:

Metrics RIOT
Price $8.76
Average Price Target / Upside N/A
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Capital Markets
Sector Financial Services
Number of Employees 9
Market Cap $202.69M
Forward P/E Ratio -15.31
Price/Book Ratio 25.37
Revenue (TTM) $7.99M
YoY Quarterly Revenue Growth 41.50%
Profit Margin -250.09%

If you liked this analysis, check out Stock Guides for other stocks.

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