Greenidge Generation Holdings (USA Stocks: GREE) has shown some concerning financial indicators that may make it a risky investment compared to Diamond Hill Investment (USA Stocks: DHIL). The company reported a loss in EBITDA of
15.3M and a negative Return On Assets of 0.12, indicating poor profitability. Additionally, Greenidge's Free Cash Flow is at a significant deficit of
147.4M, which could impact the company's ability to invest in growth or pay dividends. On the upside, the company's Wall Street Target Price is 20, suggesting potential for price appreciation. However, the company's high Coefficient Of Variation at
1.1K and Downside Deviation of 6.24 underscore the high risk associated with this stock.
Detailed assessment
By examining the existing technical and fundamental indicators between Greenidge Generation and Diamond, we can assess the impact of market volatility on the prices of both companies. This can also help us determine if they can mitigate market risk when combined in one of your portfolios. Pair trading strategies can also be utilized, such as matching a long position in Diamond with a short position in Greenidge Generation. For more information, please refer to our
pair correlation module.
Now, let's analyze the assets. The asset utilization indicator represents the revenue generated for every dollar of assets a company currently has. Greenidge Generation reports an asset utilization ratio of 54.94 percent. This suggests that the company generates $0.55 for each dollar of assets. An increasing asset utilization ratio indicates that Greenidge Generation Holdings is becoming more efficient in using each dollar of assets for its daily operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Greenidge or Cipher is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Greenidge Generation's Liquidity
Greenidge Generation
financial leverage refers to using borrowed capital as a funding source to finance Greenidge Generation Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Greenidge Generation financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Greenidge Generation's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Greenidge Generation's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Greenidge Generation's total debt and its cash.
Correlation Between Greenidge and Cipher Mining
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Greenidge Generation together with similar or unrelated positions with a negative correlation. For example, you can also add Cipher Mining to your portfolio. If Cipher Mining is not perfectly correlated to Greenidge Generation it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Greenidge Generation, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Greenidge Generation and Cipher Mining in your portfolio? Please note if you are using this as a pair-trade strategy between Greenidge Generation and Cipher Mining, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between GREE and CIFR for more information.
What is driving Greenidge Generation Investor Appetite?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now go over Greenidge Generation revenue. Based on the latest financial disclosure, Greenidge Generation Holdings reported 89.98
M of revenue. This is 99.2% lower than that of the Capital Markets sector and 98.26% lower than that of the
Financials industry. The revenue for all United States stocks is 99.05% higher than that of Greenidge Generation. As for Diamond Hill we see revenue of 154.5
M, which is 97.02% lower than that of the Financials
| GREE | 89.98 Million | 1.66 |
| Sector | 5.18 Billion | 95.49 |
| DHIL | 154.5 Million | 2.85 |
Greenidge Generation Holdings (NASDAQ: GREE) is currently in a precarious financial position, with a high probability of bankruptcy at 96.00%. The company's current ratio stands at 0.87X, indicating that it may have difficulty meeting its short-term obligations.
Furthermore, Greenidge's net assets total $163.77M, while its total debt is $152.35M, highlighting the company's high leverage. The company's operating margin is at -0.67, and it reported an EBITDA loss of $15.3M, further emphasizing its financial struggles. Despite these challenges, Greenidge has some potential upsides. The company's stock is currently undervalued, with a price to book ratio of 0.22X. Additionally, the Wall Street target price for the stock is $20, indicating potential for significant growth. However, compared to Diamond Hill Investment (NASDAQ: DHIL), Greenidge's performance is less impressive. Diamond Hill has a strong financial position, with a higher current ratio and lower debt levels. Furthermore, Diamond Hill's operating margin and EBITDA are both positive, indicating a more profitable operation. In conclusion, while Greenidge Generation Holdings has potential for growth, its current financial situation makes it a risky investment. Investors should consider these factors carefully before deciding to invest in Greenidge over Diamond Hill Investment. .
Chances of Greenidge Generation shareholders to go ballistic
The recent statistical analysis of Greenidge Generation Holdings indicates a decrease in kurtosis to 4.68. This suggests a lower probability of extreme returns, implying a reduced likelihood of shareholders experiencing sudden, significant gains. While this may seem disadvantageous to some investors who seek high-risk, high-reward situations, it also suggests a more stable and predictable performance. This could be beneficial for those who prioritize steady growth and risk management. Greenidge Generation Holdings has shown above-average volatility over the chosen time period. Investors should independently scrutinize Greenidge Generation Holdings to ensure their intended
market timing strategies align with their expectations about the company's volatility. Understanding different
market volatility trends often assists investors in timing the market. Proper use of volatility indicators allows traders to measure the risk of Greenidge Generation's stock against market volatility during both bullish and bearish trends.
The increased level of volatility that accompanies bear markets can directly impact
Greenidge Generation's stock price, adding stress for investors as they watch the value of their shares plummet. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices fall. Despite the recent dip of over 4 percent in Greenidge Generation Holdings (USA Stocks: GREE), the stock still holds a strong potential for investors. The company's valuation market value stands at
7.8, with a possible upside price of
20.94, indicating a significant growth potential. The analyst overall consensus is a 'Strong Buy', with the lowest estimated target price at 20, further solidifying the stock's potential for growth. The valuation real value of 10.37 also suggests that the stock is undervalued, providing an excellent opportunity for investors. However, investors should also consider the possible downside price of 0.078. Overall, despite the recent dip, Greenidge Generation Holdings remains a promising investment. .
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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