Hut 8 Return On Asset vs. Market Capitalization

HUT Stock  CAD 38.00  2.78  7.89%   
Based on the key profitability measurements obtained from Hut 8's financial statements, Hut 8 Mining is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Hut 8's ability to earn profits and add value for shareholders. At this time, Hut 8's Days Sales Outstanding is very stable compared to the past year. As of the 5th of December 2024, Sales General And Administrative To Revenue is likely to grow to 1.20, while Price To Sales Ratio is likely to drop 8.30. At this time, Hut 8's Accumulated Other Comprehensive Income is very stable compared to the past year. As of the 5th of December 2024, Income Before Tax is likely to grow to about 8.2 M, while Operating Income is likely to drop (13.9 M).
For Hut 8 profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hut 8 to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hut 8 Mining utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hut 8's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hut 8 Mining over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Please note, there is a significant difference between Hut 8's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hut 8 is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hut 8'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.

Hut 8 Mining Market Capitalization vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hut 8's current stock value. Our valuation model uses many indicators to compare Hut 8 value to that of its competitors to determine the firm's financial worth.
Hut 8 Mining is one of the top stocks in return on asset category among its peers. It also is one of the top stocks in market capitalization category among its peers . At this time, Hut 8's Market Cap is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Hut 8 by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hut 8's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Hut Market Capitalization vs. Return On Asset

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.

Hut 8

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0323
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.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.

Hut 8

Market Cap

 = 

Shares Outstanding

X

Share Price

 = 
3.3 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.

Hut Market Capitalization vs Competition

Hut 8 Mining is one of the top stocks in market capitalization category among its peers. Market capitalization of Canadian Equity industry is currently estimated at about 15.08 Billion. Hut 8 totals roughly 3.3 Billion in market capitalization claiming about 22% of stocks in Canadian Equity industry.
Capitalization  Valuation  Workforce  Total debt  Revenue

Hut 8 Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hut 8, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hut 8 will eventually generate negative long term returns. The profitability progress is the general direction of Hut 8's change in net profit over the period of time. It can combine multiple indicators of Hut 8, 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 Income14.2 M17.1 M
Operating Income-13.3 M-13.9 M
Income Before Tax7.8 M8.2 M
Total Other Income Expense Net21.1 M22.1 M
Net Income8.4 M8.8 M
Income Tax Expense-568.2 K-539.8 K
Net Loss-218.5 M-207.6 M
Net Interest Income-25.1 M-26.4 M
Net Loss-59 M-62 M
Change To Netincome-65.4 M-62.1 M
Net Income Per Share 0.29  0.31 
Income Quality(3.16)(3.00)
Net Income Per E B T 2.11  2.21 

Hut Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Hut 8. 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 Hut 8 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 Hut 8's important profitability drivers and their relationship over time.

Use Hut 8 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 Hut 8 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 Hut 8 will appreciate offsetting losses from the drop in the long position's value.

Hut 8 Pair Trading

Hut 8 Mining Pair Trading Analysis

The ability to find closely correlated positions to Hut 8 could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hut 8 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 Hut 8 - 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 Hut 8 Mining to buy it.
The correlation of Hut 8 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 Hut 8 moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hut 8 Mining 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 Hut 8 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 Hut 8 position

In addition to having Hut 8 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 Momentum Thematic Idea Now

Momentum
Momentum Theme
Large corporations operating in software, education, financial and car manufacturing industries. The Momentum theme has 40 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 Momentum Theme or any other thematic opportunities.
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Other Information on Investing in Hut Stock

To fully project Hut 8's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hut 8 Mining 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 Hut 8's income statement, its balance sheet, and the statement of cash flows.
Potential Hut 8 investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Hut 8 investors may work on each financial statement separately, they are all related. The changes in Hut 8's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Hut 8'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.