Circle Internet Group, Inc.(CRCL) - Stock detail

Circle Internet Group, Inc.

US
CRCL
Circle Internet Group(Listing date: 06/05/2025)

Circle Internet Group, Inc. was founded in 2013 around Bitcoin and blockchain. Circle's mission is to increase global economic prosperity through the frictionless exchange of value. They launched USDC in 2018 as the core of the Circle Stablecoin Network. Circle's innovative products reach tens of millions of end users and power thousands of businesses, with USDC used in approximately $20.0 trillion in on-chain transactions as of December 31, 2024.

AI Value AnalystSell
Overall Rating1.3/10
Generated at:2026-04-17 17:42:26
Analysis based on real data from 5 financial reports covering periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, 2024-12-31. Current stock price and 60-day trading data as of 2026-04-18.
Overview

Circle Internet Group, Inc. (CRCL) is a newly public fintech company in the blockchain/stablecoin sector, demonstrating strong revenue growth but exhibiting alarming fundamental weaknesses including severe losses, extremely high leverage, and weak liquidity, leading to a high-risk profile.

Valuation
1/10
Profitability
2/10
Financial health
1/10
Operation Advice
  • Sell the stock.
  • The current price of $105.91 is significantly overvalued relative to fundamentals.
  • A more reasonable fundamental price range is $44-$66, with a 12-month target price of $55 based on a P/S multiple of 5.0.
  • Avoid new purchases until the company demonstrates a clear path to sustainable profitability and balance sheet improvement.

Valuation

P/E TTM
-376.68
P/E LYR
102.18
P/B MRQ
7.86
P/S TTM
--
AI Analysis
  • The stock is significantly overvalued, trading at a massive premium disconnected from current fundamentals. Key metrics include a meaningless negative trailing P/E, an exceptionally high forward P/E of 102.18, a very high P/B of 7.98, and a P/S of 9.53. A fundamental assessment suggests a reasonable price range of $44-$66.
  • The trailing P/E (PE-TTM) is -382.19, which is meaningless due to negative earnings.
  • The forward-looking (dynamic) PE of 102.18 is exceptionally high, implying investors are paying over 100 times expected future earnings.
  • The P/B ratio of 7.98 is very high, indicating the market is valuing the company's equity at nearly 8 times its accounting book value.
  • The PS-TTM of 9.53 is also very high, requiring sustained hyper-growth to justify.
  • The current price of $105.91 is in the upper half of a volatile 60-day trading range of $50.23 - $136.65.
  • Given the high leverage and negative profitability, a more reasonable P/S multiple is in the 4-6 range.
  • A reasonable P/S multiple implies a fundamental price range of approximately $44 - $66.
  • A target P/S of 5.0 yields a 12-month fundamental target price of $55.
  • The current price of $105.91 is significantly overvalued relative to its financial fundamentals.
Valuation trend

Profitability

ROE TTM
-2.76%
Net margin
-2.53%
Gross margin
39.43%
Total revenue
2.75B
AI Analysis
  • Profitability is poor and deteriorating. The company is in a high-growth, high-investment phase, burning cash and generating losses with no near-term earnings visibility, despite strong revenue growth.
  • The company reported a net loss of -$69.51M for FY 2025, a severe decline of -144.65% from a profit of $155.67M in FY 2024.
  • Gross Profit grew by 64.37% to $1.08B and the Gross Margin remained stable at ~39%.
  • The Net Margin collapsed to -2.53% from +9.29% the previous year, indicating rapidly escalating costs overwhelming top-line growth.
  • Return on Equity (ROE) is -2.76% and Return on Assets (ROA) is -0.11%, meaning the company is destroying shareholder value.
  • Revenue growth was 63.86% for FY 2025, demonstrating strong market demand.
  • The loss trend accelerated through 2025, with significant losses in Q2 and Q3.
  • The company is currently burning cash and generating losses, with no near-term earnings visibility.
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--3.60%-20.45%-8.57%-2.76%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue1.68B578.57M1.24B1.98B2.75B

Financial health

Debt/Asset
95.77%
Current ratio
1.03
Quick ratio
--
Cash ratio
1.03
AI Analysis
  • The financial condition is weak and high-risk, primarily due to extreme leverage (Debt-to-Asset ratio of 95.77%) and tight liquidity (Current Ratio of 1.03).
  • The Debt-to-Asset ratio of 95.77% is extremely high, indicating the company is heavily reliant on debt financing, posing substantial risk.
  • A Current Ratio of 1.03 is borderline, suggesting the company has just enough current assets to cover its current liabilities, leaving minimal buffer.
  • The absence of a Quick Ratio figure complicates a clear assessment of immediate liquidity.
  • The negative profitability metrics are eroding shareholder equity, reflected in the high PB ratio.
  • The combination of high debt and operating losses is a classic risk factor.
  • The financial condition is weak and high-risk.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset96.27%96.97%96.30%96.06%95.77%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.031.021.031.031.03