Chart and fundamental analysis of Iris Energy Limited (IRIS)
The operating result for the last quarter was published recently, on November 30, 2022.
1. Graphic Analysis
As the company's core activity is Bitcoin mining, it is important to analyze the correlation with the price of Bitcoin.
As you can see in the graph below, most of the time the correlation is positive.
It seems to me that the price is at the end of wave 5, about to reverse the downtrend, which has lasted since the beginning.
The DMI SMI Oscillator exhibits a bullish descending wedge.
This same interpretation can be obtained on the RSI:
2. Fundamental analysis
Net income has held steady for quite some time at $72 million.
As of Q1 since year 2022, it has declined to minus -$2 million and has since been stable.
The same reasoning can be applied to Earnings per Share versus Estimated Earnings per Share.
The balance sheet remains healthy, with assets greater than liabilities.
Even if there is a need to settle the net debt after the sale of assets, it would be comfortably honored.
With regard to cash flow, money from third parties continues to decrease, which is positive.
Money spent on investments follows a negative flow.
A negative value of Cash From Investing Activities can show poor performance, but it can also be a sign of increased investment activities.
While cash from operating activities remains stable at $4 million.
The point to note negatively is the free cash flow, which has drastically reduced to -$210 million.
1. Graphic Analysis
As the company's core activity is Bitcoin mining, it is important to analyze the correlation with the price of Bitcoin.
As you can see in the graph below, most of the time the correlation is positive.
It seems to me that the price is at the end of wave 5, about to reverse the downtrend, which has lasted since the beginning.
The DMI SMI Oscillator exhibits a bullish descending wedge.
This same interpretation can be obtained on the RSI:
2. Fundamental analysis
Net income has held steady for quite some time at $72 million.
As of Q1 since year 2022, it has declined to minus -$2 million and has since been stable.
The same reasoning can be applied to Earnings per Share versus Estimated Earnings per Share.
The balance sheet remains healthy, with assets greater than liabilities.
Even if there is a need to settle the net debt after the sale of assets, it would be comfortably honored.
With regard to cash flow, money from third parties continues to decrease, which is positive.
Money spent on investments follows a negative flow.
A negative value of Cash From Investing Activities can show poor performance, but it can also be a sign of increased investment activities.
While cash from operating activities remains stable at $4 million.
The point to note negatively is the free cash flow, which has drastically reduced to -$210 million.
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