Galaxy Digital Inc. (GLXY) Stock Analysis
Galaxy Digital Inc. (GLXY) Stock Analysis
Overall Grade: F (Concerning)
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Galaxy Digital Inc. faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | -3.2% | Cash flow pressure |
| Debt/Equity | 1.2x | Moderate leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is Galaxy Digital Inc.'s Profitability and ROIC?
Galaxy Digital Inc.'s return on invested capital of N/A is below the typical cost of capital.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below cost of capital |
| Return on Equity (ROE) | 5.1% | Warning | Moderate equity returns |
How Strong is Galaxy Digital Inc.'s Cash Flow Quality?
Galaxy Digital Inc. generated $-1.5B in free cash flow over the trailing twelve months, representing a -3.2% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | -3.2% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-1.5B | Red flag | Cash burn |
| OCF/Net Income | -5.9x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is Galaxy Digital Inc.'s Financial Health?
Galaxy Digital Inc.'s debt-to-equity ratio of 1.2x indicates moderate leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 1.2x | Adequate | Moderate leverage |
| Net Cash Position | $-477.2M | Adequate | Net debt position |
Is Galaxy Digital Inc. Stock Overvalued or Undervalued?
Galaxy Digital Inc. trades at a P/E of 48.4x, representing a premium to the sector median of N/A. Free cash flow yield of -57.6% reflects market expectations for growth.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | 48.4x | Adequate | Premium valuation |
| EV/Sales | 0.0x | Excellent | Attractive revenue multiple |
| FCF Yield | -57.6% | Warning | Lower cash yield |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | -3.2% | Bottom 10% | -0.1x below |
| Return on Equity (ROE) | 5.1% | Bottom 25% | 0.5x below |
| P/E Ratio | 48.4x | N/A | - |
Rating Thresholds
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: -3.2% (Red flag)
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 124.4% (Adequate)
P/E Ratio (Price-to-Earnings)
Stock price divided by earnings per share. Lower P/E may indicate undervaluation, while higher P/E suggests growth expectations.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 15x | Attractively valued, potential opportunity |
| Good | 15x - 25x | Fair value for quality company |
| Adequate | 25x - 35x | Growth premium, justify with earnings growth |
| Warning | 35x - 50x | High expectations priced in |
| Red flag | > 50x or negative | Speculative valuation or losses |
Current: 48.4x (Adequate)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: -57.6% (Red flag)
Frequently Asked Questions
Q: What is Galaxy Digital Inc.'s Return on Invested Capital (ROIC)?
Galaxy Digital Inc. (GLXY) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 9.2%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Galaxy Digital Inc.'s Free Cash Flow Margin?
Galaxy Digital Inc. (GLXY) has a free cash flow margin of -3.2%, generating $-1.5 billion in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is Galaxy Digital Inc. stock overvalued or undervalued?
Galaxy Digital Inc. (GLXY) trades at a P/E ratio of 48.4x, which is above the sector median of N/A. The EV/Sales multiple is 0.0x.
Q: How much debt does Galaxy Digital Inc. have?
Galaxy Digital Inc. (GLXY) has a debt-to-equity ratio of 1.2x with total debt of $2.4 billion. Net debt position is $477.2 million.
Q: What is Galaxy Digital Inc.'s revenue and earnings growth?
Galaxy Digital Inc. (GLXY) grew revenue by 42.6% year-over-year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does Galaxy Digital Inc. compare to competitors in Financials?
Compared to other companies in Financials, Galaxy Digital Inc. (GLXY) shows: ROIC of N/A is below the sector median of 9.2% (NaNx median). FCF margin of -3.2% trails the sector median of 22.2%. These rankings are based on MetricDuck's analysis of all Financials companies with available SEC filings.
Q: What warning signs should I watch for with Galaxy Digital Inc.?
Investors in Galaxy Digital Inc. (GLXY) should monitor these potential warning signs: 1) FCF margin is thin at -3.2%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-10. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.