Cipher Digital Inc. (CIFR) vs Formula Systems (1985) Ltd. (FORTY)

Cipher Digital Inc. and Formula Systems (1985) Ltd. are both Information Technology Services companies. Cipher Digital Inc. is the larger, with a market value of $2.5B against $1.7B — 1.5× the size. Cipher Digital Inc. has negative trailing earnings, so its P/E is not meaningful; Formula Systems (1985) Ltd. trades at 2.6×. Formula Systems (1985) Ltd. grew revenue faster over the last twelve months: 41.0% against −29.2%. Formula Systems (1985) Ltd. has the higher net margin (21.6% vs −742.3%) and the higher return on invested capital (12.0% vs −9.30%). Across the 18 metrics below, Formula Systems (1985) Ltd. leads on 16 and Cipher Digital Inc. on 2.

Valuation

Metric CIFR FORTY Information Technology Services median
P/E n/m 2.64 16.12
P/S 18.52 0.57 1.14
P/B 4.51 0.94 1.73
Price to free cash flow n/m 2.52 13.77
EV/EBITDA n/m 5.27 9.89
EV/Sales 40.44 0.45 1.34
Earnings yield (42.54%) 37.81% 3.10%
Free cash flow yield (112.09%) 39.67% 0.06%

Profitability

Metric CIFR FORTY Information Technology Services median
Gross margin 50.46% 19.83% 30.04%
Operating margin (387.19%) 8.54% 1.81%
Net margin (742.33%) 21.57% 0.79%
Free cash flow margin (2,075.40%) 0.00% 0.00%
Return on equity (156.77%) 0.00% 0.00%
Return on assets (20.64%) 18.83% 0.00%
Return on invested capital (9.30%) 11.98% 0.00%

Growth

Metric CIFR FORTY Information Technology Services median
Revenue growth (TTM) (29.24%) 41.04% 4.85%
EPS growth (last fiscal year) (1,435.71%) 654.22% 3.57%
Revenue growth, 5-year CAGR — 6.32% 6.93%
Net income growth, 5-year CAGR 0.00% 66.94% 0.00%

Health

Metric CIFR FORTY Information Technology Services median
Debt to equity 9.29 0.31 0.31
Current ratio 1.69 1.48 1.69
Net debt to EBITDA (1.79) (2.40) 0.55

Dividend

Metric CIFR FORTY Information Technology Services median
Dividend yield — 1.97% 1.97%
Payout ratio — 0.05 0.29

Size

Metric CIFR FORTY Information Technology Services median
Market cap 2.53b 1.69b 1.02b

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