Greenidge Generation Holdings Inc. (NASDAQ: GREE)

Sector: Financial Services Industry: Capital Markets CIK: 0001844971
Market Cap 17.79 Mn
P/B -0.36
P/E -10.91
P/S 0.29
ROIC (Qtr) 846.67
Div Yield % 0.00
Rev 1y % (Qtr) 23.23
Total Debt (Qtr) 45.85 Mn
Debt/Equity (Qtr) -0.93

About

Greenidge Generation Holdings Inc., known as Greenidge, operates in the cryptocurrency datacenter industry, with its stock symbol being GREE. The company is a vertically integrated cryptocurrency datacenter and power generation facility with a nameplate capacity of approximately 106 megawatts, utilizing natural gas power generation. Greenidge generates revenue from three primary sources: datacenter hosting, cryptocurrency mining, and power and capacity. The company's main business activities include cryptocurrency datacenter operations, power generation,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 7.58M provide 2.14x coverage of short-term debt 3.54M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 50.57M provide exceptional 23.55x coverage of deferred revenue 2.15M, showing strong service capability backing.
  • Retained earnings of (387.46M) represent substantial 7.84x of equity (49.41M), indicating strong internal capital generation.
  • Cash position of 7.58M provides strong 3.53x coverage of deferred revenue 2.15M, ensuring service delivery capability.
  • Short-term investments of 6.12M provide 1.73x coverage of short-term debt 3.54M, showing strong liquidity management.

Bear case

  • Operating cash flow of (14.10M) barely covers its investment activities of 18.52M, with a coverage ratio of -0.76, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (14.10M) provides insufficient coverage of deferred revenue obligations of 2.15M, which is -6.57x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (14.10M) shows concerning coverage of stock compensation expenses of 993000, with a -14.20 ratio indicating potential earnings quality issues.
  • Operating cash flow of (14.10M) provides minimal -2819.80x coverage of tax expenses of 5000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (16.92M) provides weak coverage of capital expenditures of 2.82M, with a -5.99 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Capital Markets
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GS Goldman Sachs Group Inc 284.23 Bn 17.94 4.84 911.32 Bn
2 MS Morgan Stanley 279.63 Bn 17.97 4.05 353.12 Bn
3 SCHW Schwab Charles Corp 179.33 Bn 23.09 7.83 27.59 Bn
4 HOOD Robinhood Markets, Inc. 106.92 Bn 48.73 25.43 0.00 Bn
5 CRCL Circle Internet Group, Inc. 40.97 Bn 261.00 24.22 0.15 Bn
6 IBKR Interactive Brokers Group, Inc. 28.23 Bn 30.79 4.75 28.43 Bn
7 LPLA LPL Financial Holdings Inc. 27.60 Bn 33.13 1.77 7.52 Bn
8 FUTU Futu Holdings Ltd 22.89 Bn 18.13 8.54 1.75 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.58 1.07
EV to Cash from Ops. EV/CFO -5.66 15.33
EV to Debt EV to Debt 1.74 21.89
EV to EBIT EV/EBIT 20.58 -0.80
EV to EBITDA EV/EBITDA 12.18 11.20
EV to Free Cash Flow [EV/FCF] EV/FCF -4.71 43.08
EV to Market Cap EV to Market Cap 4.48 -0.05
EV to Revenue EV/Rev 1.28 12.82
Price to Book Value [P/B] P/B -0.36 3.09
Price to Earnings [P/E] P/E -10.91 6.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 4.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 10.37
Dividend per Basic Share Div per Share (Qtr) 0.00 0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -8.68
Interest Coverage Int. cover (Qtr) 0.70 37.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 63.43 -12,429.64
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.15 1,588.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 183.78 270.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -29.95 333.57
EBIT Growth (1y) % EBIT 1y % (Qtr) 182.76 3,103.22
EBT Growth (1y) % EBT 1y % (Qtr) 87.55 3,039.53
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 24.25
FCF Growth (1y) % FCF 1y % (Qtr) 37.03 -80.08
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -24.41 51.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.23 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.08
Cash Ratio Cash Ratio (Qtr) 0.31 2.01
Current Ratio Curr Ratio (Qtr) 0.89 3.47
Debt to Equity Ratio Debt/Equity (Qtr) -0.93 1.46
Interest Cover Ratio Int Coverage (Qtr) 0.70 37.53
Times Interest Earned Times Interest Earned (Qtr) 0.70 37.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 27.00 76.68
EBIT Margin % EBIT Margin % (Qtr) 6.24 46.81
EBT Margin % EBT Margin % (Qtr) -2.62 58.57
Gross Margin % Gross Margin % (Qtr) 22.70 53.60
Net Profit Margin % Net Margin % (Qtr) -2.60 29.41