Ebang International Holdings Inc. (EBON) | Investment Case

1. Company Snapshot

1.a. Company Description

Ebang International Holdings Inc., through its subsidiaries, engages in the research, design, and development of application-specific integrated circuit chips and manufacture of Bitcoin mining machines under the Ebit brand in China, the United States, Hong Kong, and internationally.It also provides mining machine hosting services that enable customers to operate mining machines remotely; and routine maintenance services, as well as engages in the development of proprietary cryptocurrency exchange platform.In addition, the company offers fiber-optic communication access devices, including multiprotocol label switching fiber-optic access network devices, multi-service access platform integrated business access devices, and wavelength-division multiplexing fiber-optic devices; and enterprise convergent terminal products, which consists gigabit passive optical network, enterprise cloud gateway devices, industrial Internet of Things access devices, and business enterprise smart wireless access devices.

It serves the blockchain and telecommunications industries.The company also provides foreign exchange trading and digital currency transfer services, as well as deals in virtual currencies.It sells its blockchain products directly, as well as through its website; and telecommunication products under the EBANG brand name primarily through supplier contracts.

The company was incorporated in 2018 and is headquartered in Hangzhou, China.

Show Full description

1.b. Last Insights on EBON

Ebang International Holdings Inc.'s recent financial results for the first six months of fiscal year 2024 may have raised concerns. The company's unaudited financial results, announced on August 23, 2024, did not provide a clear picture of its financial health. Meanwhile, the company's recent partnership with Johnnie Walker, announced on September 6, 2024, may not have a significant impact on its financials in the short term. The lack of clear financial guidance and the absence of significant revenue growth drivers may be weighing on investor sentiment.

1.c. Company Highlights

Last Price	3.69
Change Percentage	4.86%
Open	3.69
Previous Close	3.52
Market Cap ( Millions)	24
Volume	1160
Year High	9.61
Year Low	3
M A 50	4.26
M A 200	4.09

FCF Yield	-98.37%
Dividend Yield	0.00%
ROE	-7.22%
Debt / Equity	1.33%
Net Debt / EBIDTA	793.16%
Price To Book	0.09
Price Earnings Ratio	-1.19
Price To FCF	-1.02
Price To sales	3.12
EV / EBITDA	7.07

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Ebang International (NASDAQ:EBON) Shares Down 4.4% – Here’s What Happened

Nov -18

Source: defenseworld.net

Ebang International Holdings Inc. Reports Unaudited Financial Results for the First Six Months of Fiscal Year 2025

Aug -15

Source: globenewswire.com

Ebang International Reports Financial Results for Fiscal Year 2024

Apr -28

Source: globenewswire.com

JOHNNIE WALKER BLENDED SCOTCH WHISKY TEAMS UP WITH EBON MOSS-BACHRACH, COURTNEY STORER AND CHARLES JOLY TO CREATE BLUE LABEL COCKTAIL PAIRINGS IN CELEBRATION OF THE 76TH EMMY® AWARDS

Sep -06

Source: prnewswire.com

Ebang International Holdings Inc. Reports Unaudited Financial Results for the First Six Months of Fiscal Year 2024

Aug -23

Source: globenewswire.com

Ebang International Reports Financial Results for Fiscal Year 2023

Apr -26

Source: globenewswire.com

3 Penny Stocks AI Predicts Will Skyrocket 10,000%

Jan -16

Source: InvestorPlace

Ebang International Holdings Inc. Reports Unaudited Financial Results for the First Six Months of Fiscal Year 2023

Aug -25

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.94%)

6. Segments

Cross-border Payment and Foreign Exchange Services

Expected Growth: 12.3%

Increasing global trade and commerce, growing demand for secure and efficient international transactions, and adoption of digital payment systems drive the growth of Ebang's cross-border payment and foreign exchange services.

Cryptocurrency Exchange Services

Expected Growth: 15.4%

Growing adoption of cryptocurrencies, increasing demand for secure and reliable trading platforms, and expansion into new markets drive the growth of Ebang's cryptocurrency exchange services.

Telecommunication Equipment

Expected Growth: 12.4%

Growing demand for high-speed data transmission and network infrastructure solutions, driven by increasing adoption of 5G and IoT technologies, is expected to drive Ebang International Holdings Inc.'s growth.

Management and Maintenance

Expected Growth: 15.4%

Growing demand for cryptocurrency mining, increasing adoption of digital currencies, and rising need for efficient mining equipment maintenance drive the growth of Ebang's Management and Maintenance segment.

Bitcoin Mining Machines and Related Accessories

Expected Growth: 12.1%

Growing demand for cryptocurrency mining, increasing adoption of ASIC miners, and rising need for efficient mining operations drive the growth of Ebang International Holdings Inc.'s Bitcoin mining machines and accessories.

7. Detailed Products

Bitcoin Mining Machines

Ebang International Holdings Inc. designs and manufactures high-performance Bitcoin mining machines that enable efficient and cost-effective cryptocurrency mining.

Blockchain-enabled Financial Services

Ebang offers a range of blockchain-enabled financial services, including cryptocurrency trading, lending, and payment solutions, designed to provide secure and efficient financial transactions.

Cryptocurrency Exchanges

Ebang operates cryptocurrency exchanges that provide a secure and reliable platform for buying, selling, and trading cryptocurrencies.

Blockchain-based Data Storage

Ebang offers blockchain-based data storage solutions that provide secure, decentralized, and tamper-proof data storage for various industries.

Artificial Intelligence and Machine Learning Solutions

Ebang develops and provides AI and ML solutions that enable businesses to automate processes, gain insights, and make data-driven decisions.

8. Ebang International Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ebang International Holdings Inc. operates in the e-commerce industry, where substitutes are readily available. However, the company's strong brand recognition and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Ebang International Holdings Inc. has a large customer base, but individual customers have limited bargaining power. However, the company's reliance on a few large customers increases the bargaining power of these customers.

Bargaining Power Of Suppliers

Ebang International Holdings Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's scale and negotiating power also help to mitigate the bargaining power of suppliers.

Threat Of New Entrants

The e-commerce industry has low barriers to entry, making it relatively easy for new entrants to join the market. However, Ebang International Holdings Inc.'s established brand and customer base provide a competitive advantage.

Intensity Of Rivalry

The e-commerce industry is highly competitive, with many players vying for market share. Ebang International Holdings Inc. faces intense competition from established players and new entrants, which increases the intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	2.33%
Debt Cost	3.95%
Equity Weight	97.67%
Equity Cost	13.16%
WACC	12.95%
Leverage	2.39%

11. Quality Control: Ebang International Holdings Inc. passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Cricut

A-Score: 6.0/10

Value: 6.2

Growth: 6.3

Quality: 7.6

Yield: 10.0

Momentum: 3.0

Volatility: 2.7

1-Year Total Return ->

GigaMedia

A-Score: 5.7/10

Value: 7.5

Growth: 4.3

Quality: 4.8

Yield: 0.0

Momentum: 8.5

Volatility: 9.3

1-Year Total Return ->

AGM Group Holdings

A-Score: 4.7/10

Value: 9.6

Growth: 8.4

Quality: 8.8

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

HeartCore Enterprises

A-Score: 4.6/10

Value: 7.9

Growth: 4.2

Quality: 6.4

Yield: 1.7

Momentum: 6.0

Volatility: 1.7

1-Year Total Return ->

Ebang International Holdings

A-Score: 3.9/10

Value: 7.6

Growth: 2.6

Quality: 3.9

Yield: 0.0

Momentum: 4.5

Volatility: 4.7

1-Year Total Return ->

AstroNova

A-Score: 3.4/10

Value: 7.5

Growth: 3.9

Quality: 3.9

Yield: 0.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

12.45%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

12.95%

Ebang International Holdings Inc. - KYG3R33A2053

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on EBON

1.c. Company Highlights

Lower Quality

Strong Momentum

Medium Volatility

Average Growth

Fairly Valued

Average Yield

Stable Momentum

Lower Growth

Average Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.94%)

6. Segments

Cross-border Payment and Foreign Exchange Services

Expected Growth: 12.3%

Cryptocurrency Exchange Services

Expected Growth: 15.4%

Telecommunication Equipment

Expected Growth: 12.4%

Management and Maintenance

Expected Growth: 15.4%

Bitcoin Mining Machines and Related Accessories

Expected Growth: 12.1%

7. Detailed Products

Bitcoin Mining Machines

Blockchain-enabled Financial Services

Cryptocurrency Exchanges

Blockchain-based Data Storage

Artificial Intelligence and Machine Learning Solutions

8. Ebang International Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Ebang International Holdings Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.69$

Current Price

3.69$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA