Greenidge Generation Holdings Inc. (NASDAQ:GREE) About To Shift From Loss To Profit
We feel now is a pretty good time to analyse Greenidge Generation Holdings Inc.'s (NASDAQ:GREE) business as it appears the company may be on the cusp of a considerable accomplishment. Greenidge Generation Holdings Inc. operates an integrated bitcoin mining and power generation facility in in the Town of Torrey, New York. With the latest financial year loss of US$3.3m and a trailing-twelve-month loss of US$4.6m, the US$667m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Greenidge Generation Holdings will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Greenidge Generation Holdings
Expectations from some of the American Software analysts is that Greenidge Generation Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$7.4m in 2021. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 116% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Greenidge Generation Holdings given that this is a high-level summary, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 12% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Greenidge Generation Holdings, so if you are interested in understanding the company at a deeper level, take a look at Greenidge Generation Holdings' company page on Simply Wall St. We've also put together a list of essential aspects you should further research:
Valuation: What is Greenidge Generation Holdings worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Greenidge Generation Holdings is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Greenidge Generation Holdings’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
