CleanSpark Profitability Analysis

CLSK Stock  USD 12.02  0.31  2.51%   
Taking into consideration CleanSpark's profitability measurements, CleanSpark may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess CleanSpark's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2008-12-31
Previous Quarter
-236.2 M
Current Value
-62.2 M
Quarterly Volatility
37 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
The value of Price To Sales Ratio is estimated to slide to 5.08. The value of Days Sales Outstanding is estimated to slide to 100.25. At this time, CleanSpark's Income Quality is quite stable compared to the past year. Net Income Per E B T is expected to rise to 1.34 this year, although the value of Net Loss is projected to rise to (138.5 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.50.5632
Fairly Down
Slightly volatile
For CleanSpark profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CleanSpark to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CleanSpark utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CleanSpark's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CleanSpark over time as well as its relative position and ranking within its peers.
  

CleanSpark's Revenue Breakdown by Earning Segment

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For more information on how to buy CleanSpark Stock please use our How to buy in CleanSpark Stock guide.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CleanSpark. If investors know CleanSpark will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CleanSpark listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.69)
Revenue Per Share
1.788
Quarterly Revenue Growth
1.287
Return On Assets
0.022
Return On Equity
(0.15)
The market value of CleanSpark is measured differently than its book value, which is the value of CleanSpark that is recorded on the company's balance sheet. Investors also form their own opinion of CleanSpark's value that differs from its market value or its book value, called intrinsic value, which is CleanSpark's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CleanSpark's market value can be influenced by many factors that don't directly affect CleanSpark's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CleanSpark's value and its price as these two are different measures arrived at by different means. Investors typically determine if CleanSpark is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CleanSpark's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

CleanSpark Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CleanSpark's current stock value. Our valuation model uses many indicators to compare CleanSpark value to that of its competitors to determine the firm's financial worth.
CleanSpark is rated fifth in return on equity category among its peers. It is number one stock in return on asset category among its peers . At this time, CleanSpark's Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value CleanSpark by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

CleanSpark Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

CleanSpark

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.15
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

CleanSpark

Return On Asset

 = 

Net Income

Total Assets

 = 
0.022
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

CleanSpark Return On Asset Comparison

CleanSpark is currently under evaluation in return on asset category among its peers.

CleanSpark Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CleanSpark, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CleanSpark will eventually generate negative long term returns. The profitability progress is the general direction of CleanSpark's change in net profit over the period of time. It can combine multiple indicators of CleanSpark, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income259.9 K272.9 K
Operating Income-149 M-141.6 M
Income Before Tax-142.4 M-135.3 M
Net Loss-145.8 M-138.5 M
Total Other Income Expense Net6.6 M6.9 M
Net Loss-145.8 M-138.5 M
Net Loss-51.6 M-49 M
Income Tax Expense3.3 M3.5 M
Interest Income8.6 M4.7 M
Net Interest Income6.1 M6.4 M
Change To Netincome55 M57.8 M
Net Loss(0.67)(0.71)
Income Quality 1.60  1.68 
Net Income Per E B T 1.02  1.34 

CleanSpark Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on CleanSpark. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of CleanSpark position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the CleanSpark's important profitability drivers and their relationship over time.

CleanSpark Profitability Trends

CleanSpark profitability trend refers to the progression of profit or loss within a business. An upward trend means that CleanSpark's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is CleanSpark's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

CleanSpark Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between CleanSpark different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards CleanSpark in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down CleanSpark's future profitability.

Use CleanSpark in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CleanSpark position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CleanSpark will appreciate offsetting losses from the drop in the long position's value.

CleanSpark Pair Trading

CleanSpark Pair Trading Analysis

The ability to find closely correlated positions to CleanSpark could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CleanSpark when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CleanSpark - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CleanSpark to buy it.
The correlation of CleanSpark is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CleanSpark moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CleanSpark moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CleanSpark can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your CleanSpark position

In addition to having CleanSpark in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run FinTech Thematic Idea Now

FinTech
FinTech Theme
High long term potential financial entities that are ranging from payment processing, investment management to commercial and investment banking. The FinTech theme has 81 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize FinTech Theme or any other thematic opportunities.
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When determining whether CleanSpark is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if CleanSpark Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Cleanspark Stock. Highlighted below are key reports to facilitate an investment decision about Cleanspark Stock:
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For more information on how to buy CleanSpark Stock please use our How to buy in CleanSpark Stock guide.
You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
To fully project CleanSpark's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CleanSpark at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include CleanSpark's income statement, its balance sheet, and the statement of cash flows.
Potential CleanSpark investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although CleanSpark investors may work on each financial statement separately, they are all related. The changes in CleanSpark's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on CleanSpark's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.