GREE

We rate Greenidge Generation Holdings Inc. (GREE) as a Reduce with a composite score of 44.3/100 at a current price of $1.28. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.

The rating is primarily driven by strength in value (80th percentile) and momentum (51th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (7th percentile) and investment (25th percentile) tempers our overall conviction. We assign a No Moat rating (19/100), Very High uncertainty, and Poor capital allocation.

Key items to watch: the path to profitability. 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.

Greenidge Generation Holdings Inc. holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 44.3/100 places it at rank #2907 in our full 7,333-stock universe. At $29M in market capitalization, Greenidge Generation Holdings Inc. is a small-cap player in the Finance, Insurance, And Real Estate space, which limits certain scale advantages but may allow for more agile strategic execution.

Revenue is growing at 17%, though momentum at the 51th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.

The margin cascade tells an important story: gross margins of 8% (-68.7pp vs sector) narrow to operating margins of -19% (-35.6pp vs sector) and net margins of -8.5%, yielding a gross-to-net conversion rate of -108%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $1.28, Greenidge Generation Holdings Inc. appears undervalued relative to its fundamentals. Our value factor score of 80/100 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. The stock screens as attractively priced on a majority of these measures, suggesting the market may be underappreciating the underlying fundamentals.

The stock currently trades at a P/E of 1.7x (a 86% discount to the sector median of 11.9x), EV/EBITDA of 54.3x (at a premium), P/S of 0.3x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a Very High uncertainty rating to Greenidge Generation Holdings Inc.. The stock exhibits multiple compounding risk factors: elevated market sensitivity (beta of 1.95), current negative profitability (net margin -8.5%), below-average price stability (7th percentile). The extreme uncertainty around future cash flows makes precise valuation difficult, and the range of outcomes is exceptionally wide. Only investors with high risk tolerance and extended time horizons should consider this name.

Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.95); current negative profitability (net margin -8.5%); below-average price stability (7th percentile). 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 7th percentile and quality factor at the 47th percentile provide a quantitative summary of the overall risk landscape.

We identify limited risk mitigants at this time, which contributes to our very high uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.

We rate Greenidge Generation Holdings Inc.'s capital allocation as Poor. Key concerns include low returns on equity (3.0%), negative profitability, weak asset returns (ROA -8.1%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — Greenidge Generation Holdings Inc. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.

Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.

In summary, Greenidge Generation Holdings Inc. receives a Reduce rating with a composite score of 44.3/100 (rank #2907 of 7,333). Our quantitative framework assigns a No Moat (19/100, trend: stable), Very High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 42/100.

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