SLAI

We rate BIT Mining Ltd (SLAI) as Avoid with a composite score of 28.1/100 at a current price of $0.86. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.

The rating is primarily driven by strength in value (42th percentile) and investment (29th percentile), which together account for the majority of the composite score. Offsetting weakness in momentum (9th percentile) and stability (12th percentile) tempers our overall conviction. We assign a No Moat rating (28/100), High uncertainty, and Exemplary capital allocation.

Key items to watch: momentum to confirm whether the current price trend has legs. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

BIT Mining Ltd holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 28.1/100 places it at rank #4642 in our full 7,333-stock universe. At $280M in market capitalization, BIT Mining Ltd is a small-cap player in the Services space, which limits certain scale advantages but may allow for more agile strategic execution.

Revenue contraction of -24% combined with momentum at the 9th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.

The margin cascade tells an important story: gross margins of 9% (-50.5pp vs sector) narrow to operating margins of -24% (-27.8pp vs sector) and net margins of 36.2%, yielding a gross-to-net conversion rate of 399%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.

At a current price of $0.86, BIT Mining Ltd is trading near fair value based on current fundamentals. Our value factor score of 42/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at a P/E of 77.0x (a 224% premium to the sector median of 23.7x), EV/EBITDA of 0.5x (discounted to peers), P/B of 0.3x, P/S of 0.1x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis finds only partially justified by current fundamentals.

We assign a High uncertainty rating to BIT Mining Ltd. Key risk factors include elevated market sensitivity (beta of 1.97), below-average price stability (12th percentile), weak quality scores (22th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.

Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.97); below-average price stability (12th percentile); weak quality scores (22th percentile); elevated valuation multiple (P/E 77.0x) that leaves limited margin for error. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 12th percentile and quality factor at the 22th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: conservative leverage (0% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.

We rate BIT Mining Ltd's capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 83.8%, disciplined leverage (0% D/E), best-in-class net margins of 36.2%. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — BIT Mining Ltd meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. We note that the combination of 55.2% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, BIT Mining Ltd receives a Avoid rating with a composite score of 28.1/100 (rank #4642 of 7,333). Our quantitative framework assigns a No Moat (28/100, trend: stable), High uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 23/100.

Our analysis does not support a constructive view on BIT Mining Ltd at this time. The combination of limited competitive advantages, high uncertainty, and exemplary capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.