Sphere 3D (ANY) AI Stock Analysis

• Market Cap: $11.54M
• Dividend Yield: N/A
• Average Volume (3M): 275.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: 38.44%
• EPS Growth: 94.53%
• Country: US
• Employees: 3
• Sector: Technology
• Sector Strength: 54
• Industry: Software - Application
• EPS (TTM): -0.73
• Shares Outstanding: 25,453,327
• 10 Day Avg. Volume: 226,520
• 30 Day Avg. Volume: 275,831
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.73
• Price to Cash Flow (P/CF): 8.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.00
• Price Target Upside: 566.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Sphere 3D's score reflects financial struggles, with significant challenges in profitability and cash flow management. Technical indicators suggest bearish sentiment, and the valuation remains unattractive due to negative earnings. Positive corporate events offer some future growth potential, but the overall outlook is cautious.

Positive Factors

Financial performance

Sphere posted its ninth sequential quarterly positive mining margin.

Strategic partnerships

Sphere 3D signed a Letter of Intent with Simple Mining LLC to develop and operate a 12.5MW site in Iowa, offering sub-4-cent energy costs, representing a key step in Sphere 3D’s strategic efforts.

Negative Factors

Revenue decline

Sphere 3D reported 3Q24 revenue of $2.4M, down from $4.7M in 2Q24, with the company’s average hash rate decreasing to 0.7Eh/s from 1.2Eh/s, reflecting downtime due to hosting transitions and fleet upgrades.

Sphere 3D Business Overview & Revenue Model

Company Description

Sphere 3D Corp. focuses on operating as a carbon neutral bitcoin mining company. It also provides data management solutions through hybrid cloud, cloud, and on-premises implementations directly and through its reseller network and professional services organization. Its products portfolio includes HVE-STACK high density server, which provides computer and storage appliance for the data centers; HVE-VELOCITY, a high availability dual enclosure storage area network that offers reliability and integrity for optimal data storage, protection, and recovery; HVE 3DGFX, a virtual desktop infrastructure solution; HVE STAGE, a server virtualization platform; and HVE VAULT, an appliance designed to handle requirements for backup and replication storage. In addition, it offers self-service and support services. Sphere 3D Corp. is based in Toronto, Canada.

How the Company Makes Money

Sphere 3D generates revenue primarily through the sale of its virtualization and data management software and services. The company offers subscription-based models for its cloud services, which provide businesses with scalable solutions for data storage and management. Additionally, Sphere 3D partners with hardware vendors to offer integrated solutions, enhancing its revenue streams through collaborative offerings. These partnerships and the company's focus on innovative solutions contribute significantly to its earnings.

Sphere 3D Financial Statement Overview

Summary

Sphere 3D shows financial resilience with a debt-free balance sheet, but struggles with profitability and cash flow management, evidenced by negative profit margins and erratic revenue growth.

Income Statement

Sphere 3D has faced significant challenges in profitability, with negative net profit margins consistently over the years. The TTM figures show a decrease in revenue and gross profit, impacting overall profitability. The company also reports negative EBIT and EBITDA margins, indicating operational struggles. Revenue growth has been erratic, with a decline in the latest TTM period.

Balance Sheet

The balance sheet shows a strong equity position with no debt, reflected in a debt-to-equity ratio of zero. However, the ROE is negative, affected by sustained losses. The equity ratio is strong, indicating financial stability despite operational challenges.

Cash Flow

Operating cash flow has improved in the TTM period, but free cash flow remains negative, indicating ongoing cash management challenges. The cash flow to net income ratios show an inability to convert earnings into cash, though there is a slight improvement compared to previous years.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
21.66M	21.91M	6.08M	3.72M	4.85M	5.58M
	Gross Profit
4.01M	5.96M	2.66M	1.70M	2.25M	1.85M
	EBIT
-17.36M	-30.00M	-67.42M	-18.90M	-5.68M	-5.95M
	EBITDA
-1.95M	-15.94M	-164.48M	-11.10M	-4.08M	-2.90M
	Net Income Common Stockholders
-11.02M	-23.41M	-192.91M	-17.29M	-5.78M	-6.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.57M	586.00K	1.34M	54.35M	461.00K	149.00K
	Total Assets
49.85M	45.66M	83.02M	275.92M	11.83M	8.41M
	Total Debt
0.00	0.00	0.00	0.00	2.50M	491.00K
	Net Debt
-586.00K	-586.00K	-1.34M	-54.35M	2.04M	342.00K
	Total Liabilities
9.54M	5.35M	48.45M	6.30M	6.82M	7.17M
	Stockholders Equity
40.32M	40.32M	34.56M	269.63M	5.01M	1.24M
Cash Flow		Free Cash Flow
-1.24M	-8.14M	-48.71M	-130.76M	-2.58M	-1.81M
	Operating Cash Flow
3.37M	-6.58M	-30.77M	-28.52M	-2.58M	-1.81M
	Investing Cash Flow
7.52M	2.56M	-22.04M	-122.69M	-2.00M	0.00
	Financing Cash Flow
165.25K	3.06M	0.00	205.10M	4.90M	1.62M

Sphere 3D Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANY, the sentiment is Negative. The current price of 0.45 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.71, and below the 200-day MA of 0.98, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 24.89 is Positive, neither overbought nor oversold. The STOCH value of 18.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ANY.

Sphere 3D Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIOT	63 Neutral	$2.98B	24.71	4.35%	―	34.20%	―
Sector *	58 Neutral	$21.97B	10.63	-18.43%	2.40%	4.67%	-24.47%
ANY	42 Neutral	$11.54M	―	-24.89%	―	38.44%	94.53%
MIGI	39 Underperform	$11.04M	―	-271.52%	―	25.45%	28.00%
ARBK	37 Underperform	$27.76M	―	242.25%	―	―	―

Sphere 3D Corporate Events

Sphere 3D Regains NASDAQ Compliance and Updates Bitcoin Mining

Sphere 3D Corp. has regained compliance with NASDAQ’s listing requirements and provided an update on its Bitcoin mining operations for October 2024. The company mined 11.7 Bitcoins, increased its hash rate to 0.8 EH/s, and is developing a new 12.5 MW site with low energy costs. Sphere 3D is also upgrading its mining fleet with newer equipment and plans to optimize production and reduce costs by transitioning to lower-cost facilities, positioning for growth and profitability in 2025.