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Enviri (NVRI)
NYSE:NVRI

Enviri (NVRI) AI Stock Analysis

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Enviri

(NYSE:NVRI)

50Neutral
Enviri's overall stock score of 50 reflects a blend of strengths and challenges. Revenue growth and strategic improvements are offset by financial instability and technical weaknesses. While Clean Earth's performance is a bright spot, high leverage, negative cash flows, and valuation concerns weigh on the stock. Investors should monitor operational efficiency and market conditions closely.

Enviri (NVRI) vs. S&P 500 (SPY)

Enviri Business Overview & Revenue Model

Company DescriptionEnviri (NVRI) is an environmental solutions company focused on providing sustainable waste management and recycling services. It operates across various sectors including industrial, commercial, and municipal, offering innovative solutions to reduce environmental impact through efficient waste disposal and resource recovery processes.
How the Company Makes MoneyEnviri makes money primarily through service contracts with industrial, commercial, and municipal clients. The company's revenue streams include fees for waste collection, transportation, and disposal services, as well as income from selling recycled materials recovered from waste streams. Enviri may also generate revenue through partnerships with government bodies and private entities focused on sustainability initiatives, and through consulting services that help clients improve their waste management practices.

Enviri Financial Statement Overview

Summary
Enviri's financial performance presents a mixed picture. While revenue growth is strong, persistent net losses and negative cash flows pose significant risks. High leverage and decreasing equity weaken financial stability. Operational efficiency needs improvement to enhance profitability.
Income Statement
55
Neutral
Enviri's revenue has shown steady growth over the past years, with a revenue growth rate of approximately 13.23% from 2023 to 2024. However, profitability remains a concern as the company has reported negative net income for multiple years. The Gross Profit Margin as of 2024 stands at 18.78%, demonstrating a stable ability to cover direct costs, but EBIT and EBITDA margins are low at 1.35% and 1.35% respectively, indicating challenges in operational efficiency.
Balance Sheet
60
Neutral
The balance sheet reveals a high debt-to-equity ratio of 3.68, reflecting significant leverage that could pose financial risks. While total assets have increased, stockholders' equity has decreased, indicating potential weakening in financial stability. The equity ratio is 15.52%, suggesting a moderate reliance on equity financing. Return on equity is negative due to consistent losses, highlighting profitability challenges.
Cash Flow
50
Neutral
Operating cash flow has decreased in 2024 compared to the previous year, and free cash flow is negative, indicating challenges in generating cash from operations and after capital expenditures. The free cash flow to net income ratio is negative due to losses. These factors suggest liquidity challenges that may affect the company’s ability to fund growth and operations without external financing.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.34B2.07B1.89B1.85B1.86B
Gross Profit
440.06M435.56M335.73M357.84M363.05M
EBIT
31.75M111.01M-57.34M88.38M21.08M
EBITDA
190.35M266.23M110.64M256.90M151.66M
Net Income Common Stockholders
-127.97M-86.12M-180.07M-3.25M-26.34M
Balance SheetCash, Cash Equivalents and Short-Term Investments
88.36M122.68M81.33M82.91M76.45M
Total Assets
2.65B2.85B2.79B3.05B2.99B
Total Debt
1.51B1.53B1.46B1.48B1.39B
Net Debt
1.42B1.41B1.38B1.39B1.31B
Total Liabilities
2.20B2.28B2.17B2.25B2.28B
Stockholders Equity
411.45M523.15M569.44M748.16M657.15M
Cash FlowFree Cash Flow
-58.53M-25.08M13.18M-86.49M-66.72M
Operating Cash Flow
78.06M114.45M150.53M72.20M53.82M
Investing Cash Flow
-34.07M-116.58M-99.06M-124.45M-520.64M
Financing Cash Flow
-63.40M43.12M-42.78M60.24M486.96M

Enviri Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.06
Price Trends
50DMA
8.17
Negative
100DMA
8.10
Negative
200DMA
9.04
Negative
Market Momentum
MACD
-0.75
Positive
RSI
28.42
Positive
STOCH
23.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVRI, the sentiment is Negative. The current price of 6.06 is below the 20-day moving average (MA) of 7.25, below the 50-day MA of 8.17, and below the 200-day MA of 9.04, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 28.42 is Positive, neither overbought nor oversold. The STOCH value of 23.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVRI.

Enviri Risk Analysis

Enviri disclosed 30 risk factors in its most recent earnings report. Enviri reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Enviri Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
WMWM
80
Outperform
$90.16B33.4636.24%1.32%8.01%20.17%
RSRSG
75
Outperform
$72.36B35.9518.61%0.95%7.13%18.68%
CLCLH
70
Outperform
$10.35B25.8916.69%8.89%6.76%
62
Neutral
$8.16B12.850.64%3.04%3.83%-15.83%
58
Neutral
$2.83B38.09%7.44%-360.33%
50
Neutral
$486.09M-26.55%13.26%-47.99%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NVRI
Enviri
6.36
-1.83
-22.34%
CLH
Clean Harbors
192.13
4.80
2.56%
RSG
Republic Services
231.71
47.92
26.07%
WM
Waste Management
224.21
16.19
7.78%
VEON
VEON
40.51
15.18
59.93%

Enviri Earnings Call Summary

Earnings Call Date: Feb 20, 2025 | % Change Since: -30.58% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in the Clean Earth segment, achieving record revenue and significant contributions to Enviri's consolidated results. However, the call also highlighted significant challenges faced by Harsco Environmental due to market conditions and Harsco Rail due to contract and supply chain issues, leading to negative cash flows and substantial special charges.
Highlights
Record Performance by Clean Earth
Clean Earth achieved record revenue, EBITDA, and cash flow for the fourth quarter of 2024. The segment's EBITDA has more than doubled since 2021, with a substantial improvement in profit margins.
Highest Adjusted EBITDA in Over a Decade
Enviri reported the highest adjusted EBITDA in over ten years, with a 10% organic increase and a 100 basis point margin lift.
Improved Cash Flow and Safety Measures
Cash flow from Clean Earth and Harsco Environmental improved to nearly $200 million, along with enhanced safety performance across the company.
Clean Earth's Strategic Growth
Clean Earth's contribution to Enviri's consolidated EBITDA grew from 25% to over 50% since 2021. The segment is expected to achieve further double-digit EBITDA growth in 2025.
Positive Free Cash Flow from Clean Earth and HE
Clean Earth and Harsco Environmental combined generated over $190 million in free cash flow in 2024, an improvement from 2023.
Lowlights
Challenges in Harsco Environmental
Harsco Environmental faced challenges due to weaker global steel production, low-priced Chinese steel flooding export markets, and a strong US dollar.
Ongoing Difficulties in Harsco Rail
Harsco Rail continued to struggle with significant challenges due to a small number of engineered contracts, supply chain disruptions, and inflation, resulting in negative cash flow impact.
Substantial Special Charges
The fourth quarter reflected special charges totaling $90 million, including asset impairments, write-downs, and environmental issues.
Negative Free Cash Flow
Enviri's free cash flow for 2024 was negative $34 million, primarily due to large engineer-to-order projects in the Rail business.
Company Guidance
During the Enviri Corporation fourth-quarter 2024 earnings call, key guidance metrics for 2025 were discussed. The company anticipates adjusted EBITDA to range between $305 to $325 million, reflecting a 5% organic growth. Clean Earth's EBITDA is projected to grow double digits, whereas Harsco Environmental (HE) anticipates a decline due to the impact of a stronger US dollar and divestitures. The company expects its free cash flow to improve significantly, ranging from $30 million to $50 million, attributed to improvements in Rail's cash flow and decreased pension contributions. Rail's adjusted EBITDA is expected to increase by 50%, driven by price, volume, and efficiency initiatives. Enviri also plans capital spending of $130 to $140 million for the year, focusing on growth in Clean Earth. For the first quarter, adjusted EBITDA is anticipated to be between $57 million to $62 million.

Enviri Corporate Events

Executive/Board ChangesFinancial Disclosures
Enviri Corporation Announces Board Changes Amid Financial Loss
Negative
Feb 20, 2025

Enviri Corporation announced that directors David C. Everitt and Phillip C. Widman will retire from the board at the company’s 2025 Annual Meeting, with no disagreements regarding company operations. Nicholas C. Fanandakis has been nominated to join the board, bringing extensive experience from his previous roles at DuPont. Enviri reported a GAAP consolidated loss of $119 million for 2024, with adjusted EBITDA increasing 11% organically. Despite challenges, the company achieved significant growth in Clean Earth and improved its credit agreement, with expectations for increased cash flow in 2025.

Executive/Board ChangesBusiness Operations and Strategy
Enviri’s Strategic Board Expansion with Neuberger Berman
Positive
Jan 21, 2025

On January 17, 2025, Enviri Corporation entered into a Cooperation Agreement with Neuberger Berman Group to add two independent directors to its Board. This move is part of Enviri’s ongoing board refreshment plan aimed at advancing the company’s long-term strategy. Neuberger Berman has also agreed to support Enviri’s board nominees during the Standstill Period. This collaboration reflects Enviri’s commitment to enhancing corporate governance and engaging with stakeholders to drive growth and deliver sustainable value.

Executive/Board ChangesBusiness Operations and Strategy
Enviri Updates Executive Severance Agreements for Stability
Neutral
Dec 23, 2024

Enviri Corporation has amended its change in control severance agreements for key executives, including the CEO, CFO, and other senior leaders. The amendments ensure that these executives receive compensation and benefits if their employment is terminated without cause or if they leave for good reason following a change in control or a material divestment. This move likely aims to secure leadership stability and protect executive interests amid potential organizational changes.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.