Anaergia, Inc. (ANRG) AI Stock Analysis

• Market Cap: C$166.44M
• Dividend Yield: N/A
• Average Volume (3M): 38.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.67
• Revenue Growth: -27.77%
• EPS Growth: 77.57%
• Country: CA
• Employees: 280
• Sector: Industrials
• Sector Strength: 70
• Industry: Waste Management
• EPS (TTM): -0.68
• Shares Outstanding: 169,839,580
• 10 Day Avg. Volume: 25,616
• 30 Day Avg. Volume: 38,487
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.48
• Price to Cash Flow (P/CF): -5.30
• P/FCF Ratio: 11.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$1.30
• Price Target Upside: 32.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Anaergia, Inc.'s overall score reflects significant financial challenges, including high leverage and negative profitability, which weigh heavily on the stock's assessment. The technical indicators suggest some near-term bullish momentum, yet caution is advised due to overbought signals. The recent earnings call provided a glimpse of positive strategic shifts and financial improvements, which, while encouraging, are not yet sufficient to outweigh the financial risks. Valuation remains a concern given the negative P/E ratio and lack of dividends.

Anaergia, Inc. Business Overview & Revenue Model

Company Description

Anaergia Inc., together with its subsidiaries, provides solutions for the generation of renewable energy and conversion of waste to resources. The company operates through three segments: Capital Sales; Services; and Build, Own, and Operate Projects. It offers waste processing solutions that capture and process organic waste contained within mixed municipal solid wastes; anaerobic digestion solution for the production of clean energy, fertilizers, and recycled water from waste streams; membrane-based system to upgrade biogas and create pipeline; liquid treatment for water re-use and nutrient recovery; and residue treatment solutions. The company offers wastewater resource recovery, municipal solid waste, and agri-food solutions. Anaergia Inc. was founded in 2007 and is headquartered in Burlington, Canada.

How the Company Makes Money

Anaergia, Inc. generates revenue through multiple streams, primarily by designing, building, and operating energy recovery facilities. The company monetizes the energy produced from these facilities by selling renewable energy in the form of electricity, renewable natural gas, or biogas to utility companies, municipalities, and industrial clients. Additionally, Anaergia earns income by providing waste management solutions and services, such as waste collection and processing for municipalities and businesses. The company also benefits from government incentives and subsidies for renewable energy production and greenhouse gas reduction efforts, enhancing its revenue potential. Significant partnerships with local governments and private entities help secure long-term contracts and stable revenue streams, contributing to its financial success.

Anaergia, Inc. Financial Statement Overview

Summary

Anaergia, Inc. is facing financial challenges with declining revenues, negative profitability margins, and high leverage. The negative stockholders' equity and cash flow issues raise concerns about financial sustainability. Improvements in operational efficiencies and financial restructuring may be necessary.

Income Statement

Anaergia, Inc. has faced declining revenue over the past year, with a significant drop from 2022 to TTM. Notably, the company shows negative gross profit and net profit margins, indicating operational and profitability challenges. The continuous negative EBIT and EBITDA margins further highlight profitability issues, impacting the overall financial health.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, signaling financial distress and a high debt-to-equity ratio, indicative of significant leverage. The equity ratio is negative due to liabilities exceeding assets, posing a risk of insolvency and undermining financial stability.

Cash Flow

Anaergia, Inc. exhibits negative free cash flow, indicating cash outflows surpass inflows. The operating cash flow is also negative, suggesting operational cash generation issues. While there is an increase in financing cash flow, it primarily reflects reliance on external funding, which may not be sustainable long-term.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
111.00M	147.22M	162.85M	153.58M	128.04M	89.68M
	Gross Profit
17.87M	14.60M	28.60M	31.63M	28.55M	21.83M
	EBIT
-43.63M	-85.80M	-36.74M	-9.49M	-4.42M	-11.61M
	EBITDA
-65.00M	-185.49M	-53.59M	-11.38M	-4.53M	19.29M
	Net Income Common Stockholders
-57.02M	-182.60M	-74.71M	-9.38M	-16.82M	8.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.16M	22.11M	55.38M	79.32M	41.16M	8.46M
	Total Assets
452.23M	278.67M	935.11M	703.91M	452.23M	323.17M
	Total Debt
168.63M	70.89M	377.65M	221.50M	168.63M	218.20M
	Net Debt
127.47M	48.77M	322.27M	142.18M	127.47M	209.74M
	Total Liabilities
326.46M	205.08M	592.97M	367.30M	326.46M	316.00M
	Stockholders Equity
43.27M	-55.38M	208.84M	218.02M	43.27M	8.82M
Cash Flow		Free Cash Flow
-18.94M	-130.87M	-152.97M	-127.54M	-100.57M	-81.17M
	Operating Cash Flow
-45.10M	-66.76M	-30.56M	-38.95M	26.63M	-1.23M
	Investing Cash Flow
17.62M	-27.80M	-192.50M	-149.62M	-154.48M	-79.95M
	Financing Cash Flow
39.76M	64.76M	198.13M	229.91M	153.87M	84.02M

Anaergia, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ANRG, the sentiment is Negative. The current price of 0.98 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 1.06, and above the 200-day MA of 0.77, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 40.66 is Neutral, neither overbought nor oversold. The STOCH value of 25.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ANRG.

Anaergia, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPI	73 Outperform	$5.20B	18.79	6.48%	6.48%	5.08%	―
INE	68 Neutral	C$2.75B	267.06	1.44%	2.66%	2.60%	―
GRN	65 Neutral	C$14.90M	―	-5.60%	―	-10.37%	95.22%
BLX	64 Neutral	C$2.98B	82.67	2.23%	2.25%	-16.54%	-53.85%
Sector *	62 Neutral	$8.33B	14.18	2.58%	3.07%	3.83%	-14.77%
ANRG	50 Neutral	C$166.44M	―	105.95%	―	-27.77%	77.57%

Anaergia, Inc. Corporate Events

Anaergia Partners with Techbau to Build Five Biomethane Plants in Italy

Anaergia Inc. has entered into a binding agreement with Techbau S.p.A. to construct five biomethane plants in Italy, utilizing Anaergia’s advanced anaerobic digestion technologies. These facilities, located in Southern Italy, aim to support Italy’s decarbonization goals by producing renewable biomethane from agricultural and food processing wastes, with a total investment of €100 million. This partnership is a significant step in advancing Italy’s renewable energy sector, promoting both economic development and environmental sustainability.

Anaergia Partners with PepsiCo for Renewable Energy in Colombia

Anaergia Inc. has partnered with PepsiCo to implement a renewable energy solution at PepsiCo’s food production facility in Funza, Colombia. This initiative will transform 50,000 tons of organic waste into renewable natural gas annually, significantly cutting carbon emissions. The project marks another step in PepsiCo’s commitment to sustainability and enhances Anaergia’s global footprint in renewable energy solutions.

Anaergia Expands Operations with California Contract

Anaergia Inc. has secured a new operations contract with Monterey One Water in California to enhance biogas production from organic waste at the Regional Treatment Plant. The project, which aligns with California’s landfill diversion law, is expected to generate over C$3 million in revenues and further solidify Anaergia’s position as a leading operator in the state. This partnership highlights Anaergia’s commitment to transforming waste into renewable energy, benefiting local communities and supporting sustainable practices.

Anaergia Secures Major Contract for California Facility

Anaergia Inc., through its subsidiary Anaergia Services LLC, has secured a decade-long contract to operate the largest organic waste-to-energy facility in North America, located in California. This facility is designed to convert significant amounts of organic waste into renewable natural gas and supports California’s environmental regulations. This development highlights Anaergia’s commitment to sustainable waste management and renewable energy production.

Anaergia Inc. Shows Positive Progress Amidst Transition

Anaergia Inc. reported progress in its business model transition during Q3 2024, showcasing improved Adjusted EBITDA despite lower revenues. The company’s financial stability has been bolstered by a significant equity investment from Marny Investissement SA, alleviating prior concerns about its viability. This strategic shift and recent investments signal a positive trajectory for Anaergia’s future.

Anaergia Expands with New Office in Japan

Anaergia Inc. is expanding its presence in Asia by opening a new office in Tokyo, Japan, in 2025, aiming to capitalize on growing opportunities for its waste-to-renewable energy solutions. With successful past projects in Japan, Anaergia seeks to contribute to the clean energy transition and position itself as a leader in reducing carbon emissions and producing renewable fuels.