Crypto Stocks Stumble Amid Fundamentals
The recent surge in Bitcoin's price to $71,778 and the White House crypto summit have sparked interest in crypto stocks. However, a closer look at the numbers reveals that companies like Coinbase (COIN) are struggling.
Coinbase is trading at a negative P/E with revenue declining 9.2% and EPS collapsing 133%. Its fair value sits 17.8% below its current price of $160.20. Meanwhile, Fidelity National Information Services (FIS) trades at 6.2x earnings with 18.3% revenue growth, a 27.6% net margin, and 64% upside to fair value.
FIS is an undervalued large-cap fintech stock, with a P/E of 6.2x and a forward P/E of 6.6x. Its EPS growth stands at 3,007.6%, indicating a significant operational restructuring that's flowing straight to the bottom line. The company also boasts a 13.5% free cash flow yield and a 4.3% dividend yield.
Visa (V) is another quality fortress in the fintech space. With a P/E of 30x, it may not be cheap, but its strong margins and consistent growth make it an attractive option. Visa generates consistent returns with a net margin of 50.8% and a return on equity of 61.8%. Its revenue growth stands at 14.4%, and EPS growth is 14.6%.