Income Statement Flow (TTM) | Source: Yahoo Finance
Source: Cash Flow Statement | LFCF = Operating Cash Flow - CapEx - Interest Expense
Fair Value: $13.17
-66.9% Downside
Stock appears overvalued with 66.9% downside risk. Consider waiting for better entry point.
IREN Limited (IREN) currently trades at $39.79, representing a -66.9% premium to our calculated fair value of $13.17.
Key Strengths: Net cash position (negative net debt); High profit margins (76.0%); Strong revenue growth (355.4%).
Key Risks: Weak interest coverage (0.0x); Elevated short interest (16.2% of float).
Wall Street consensus is buy with a mean price target of $84.85.
| Criterion | Status | Notes |
|---|---|---|
| ≤4 operating segments | PASS | Segment count estimated from sector classification. Verify in 10-K for accuracy. |
| Top 2 segments ≥70% of revenue | PASS | Revenue concentration estimated. Verify segment breakdown in 10-K. |
| ≤3 material geographic regions | PASS | Most US-listed companies report US vs International (2 regions). |
| No exotic debt instruments or off-balance-sheet complexity | PASS | Review 10-K for convertibles, derivatives, and off-balance-sheet items. |
Recommendation: PROCEED TO VALUATION
IREN Limited operates in the vertically integrated data center business in Australia and Canada. The company owns and operates computing hardware, as well as electrical infrastructure and data centers. It also mines Bitcoin, a scarce digital asset that is created and transmitted through the operation of a peer-to-peer network of computers running the Bitcoin software. The company was formerly known as Iris Energy Limited and changed its name to IREN Limited in November 2024. The company was incorporated in 2018 and is based in Sydney, Australia.
| Market Capitalization | $13.06B |
| (+) Total Debt | $0.97B |
| (-) Cash & Equivalents | $1.03B |
| Net Debt | ($0.07B) - Net Cash |
| Enterprise Value | $13.00B |
| Metric | Value | What It Means |
|---|---|---|
| Net Debt / EBITDA | -0.77x | Net Cash Position - More cash than debt |
| Interest Coverage | 0.0x | Weak - Concern |
| Debt / Equity | 33.6% | Moderate |
| Current Ratio | 5.52 | Healthy - can easily pay short-term bills |
Overall: Balance sheet is adequate with some areas to monitor.
Industry: Capital Markets | Data: TTM (Trailing 12 Months) as of 2026-02-05 | Source: Yahoo Finance
| Company | Market Cap | P/E | Forward P/E | EV/EBITDA | Profit Margin |
|---|---|---|---|---|---|
| IREN (Target) | $13.1B | 22.9x | 83.1x | 54.6x | 76.0% |
| Peer Average (excl. target) | - | 0.0x | 0.0x | 0.0x | 0.0% |
| Method | Inputs | Fair Value |
|---|---|---|
| Equity (TTM EPS) | EPS: $1.74 x 27.5x P/E | $47.85 |
| Equity (Forward EPS) | EPS: $0.48 x 27.5x P/E | $13.17 |
| EV-Based (EBITDA) | EBITDA: $0.09B x 16.5x | $4.53 |
| Headline Fair Value | Median value used (spread 198.3% exceeds 15% threshold) | $13.17 |
Assessment: Moderately positive profile. Green factors outweigh concerns.
IREN trades at 22.9x TTM P/E and 83.1x Forward P/E. This compares to peer averages of 0.0x TTM and 0.0x Forward P/E.
Warning: Negative levered free cash flow indicates the company is consuming cash.
13 analysts cover this stock with a consensus buy rating. Price targets range from $39 to $136, with a mean of $85.
21.59 - Elevated Fear
Score: 33/100
143.16
SPY YTD: 13.0% | RSP YTD: 11.5%
No customer/supplier data available for this company. Data is curated from SEC 10-K filings for major tech companies.
Track Record: 3 beats, 5 misses, 0 in-line out of 8 quarters | 38% Beat Rate
| Date | EPS Estimate | EPS Actual | Result | Surprise % |
|---|---|---|---|---|
| 2025-11-06 | $0.14 | $0.01 | MISS | -94.4% |
| 2025-08-28 | $0.22 | $0.21 | MISS | -2.5% |
| 2025-05-14 | $0.14 | $0.11 | MISS | -25.5% |
| 2025-02-12 | $0.06 | $0.09 | BEAT | 35.7% |
| 2024-11-26 | $-0.07 | $-0.16 | MISS | -114.8% |
| 2024-08-28 | $0.03 | $-0.16 | MISS | -638.3% |
| 2024-02-15 | $0.06 | $0.08 | BEAT | 29.0% |
| 2023-02-15 | $-0.15 | $-0.06 | BEAT | 63.4% |
All financial data sourced from:
Click any colored number or source label throughout the report to view its source.
This analysis is generated automatically using publicly available data and should not be considered as financial advice. All figures are sourced from Yahoo Finance and SEC EDGAR and may contain inaccuracies. Always verify data with primary sources (SEC filings, company IR) before making investment decisions.
Past performance does not guarantee future results. Investing involves risk, including the possible loss of principal.
Current: Trailing Twelve Months (TTM) | Data Source: SEC EDGAR
Levered FCF is cash that can't be faked. Unlike earnings which can be manipulated through accounting (depreciation schedules, revenue recognition, etc.), cash flow is simple: the money is either in the bank or it's not.
This metric shows how much actual cash the company generates after paying for:
A company with strong Levered FCF can pay dividends, buy back shares, pay down debt, or invest in growth - all from real cash, not accounting profits.
Customers and suppliers report earnings BEFORE the company you're analyzing. Their results give you early signals about demand and supply chain health.
Customer Example: If Microsoft (AMD customer) beats revenue estimates by 20%, it likely means they bought more chips than analysts expected. This is bullish for AMD's upcoming earnings.
Supplier Example: If TSMC (AMD supplier) reports strong demand from AMD, that confirms AMD's production is ramping up.
By the time AMD reports, you already have data points from 5+ related companies. Smart analysts piece these together to predict earnings before they're announced.
Not all revenue is equal. Different business segments have different growth rates and profit margins.
For example, AMD's Data Center segment has ~40% margins while Gaming might be ~15%. A shift toward Data Center means higher overall profitability even if total revenue stays flat.
Watch for: