Coinbase(COIN) ZACKS·2025-04-22 16:00Core Viewpoint - Coinbase Global Inc. (COIN) has experienced a significant decline in share price, losing 29.5% year to date, which is worse than the industry and sector averages [1][4]. Company Performance - Coinbase generated 83% of its total revenues in the United States, which is being positioned as a crypto hub, and is expected to be the platform for companies integrating cryptocurrency [2]. - The company has maintained positive EBITDA for eight consecutive quarters, supported by its subscription-based business model [13]. - Coinbase ended 2024 with 3.8 billion year over year, while its debt has been decreasing [15]. Market Position and Strategy - Coinbase is poised to benefit from increased volatility in the crypto market, stronger banking relationships, and the acquisition of new licenses [12]. - The company aims to onboard over a billion users onto the crypto economy and is investing heavily in core infrastructure and platforms [14]. - The average target price for COIN shares is $280.22, suggesting a potential upside of 60.1% from the current price [10]. Financial Metrics - COIN's return on equity in the trailing 12 months was 20.6%, higher than the industry average of 16.8% [18]. - The return on invested capital was 10.6%, compared to the industry average of 5.4% [20]. - The Zacks Consensus Estimate for earnings indicates a year-over-year increase of 26.7% for the first quarter of 2025 [16]. Analyst Sentiment - The Zacks Consensus Estimate for 2025 earnings suggests a 5.3% decrease, while the 2026 estimate implies a year-over-year increase of 1.8% [21]. - Analyst sentiment has been muted, with recent estimates moving downward for both 2025 and 2026 [21]. Valuation - Coinbase shares are trading at a premium, with a 12-month forward price-to-earnings ratio of 23.72, significantly higher than the industry average of 14.42 [24]. - The stock's Value Score of D indicates a stretched valuation at this moment [24].