AMERICAN BATTERY TECHNOLOGY Co (NASDAQ: ABAT)

Sector: Industrials Industry: Waste Management CIK: 0001576873
Market Cap 435.88 Mn
P/B 4.54
P/E -9.61
P/S 86.73
ROIC (Qtr) -48.43
Div Yield % 0.00
Rev 1y % (Qtr) 364.24
Total Debt (Qtr) 278,729.00
Debt/Equity (Qtr) 0.00

About

American Battery Technology Company, also known as ABAT, operates in the battery materials sector of the lithium-ion battery industry. The company's primary business activities include the development and commercialization of lithium-ion battery recycling technology, primary resource development and refining, and chemical refining. These activities are aimed at increasing the domestic US production of critical battery metals, with a focus on sustainability and low environmental impact. ABAT's main business activities are centered around the development...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 30.92M provide 258.54x coverage of short-term debt 119604, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 100.71M provides 361.31x coverage of total debt 278729, indicating robust asset backing and low credit risk.
  • Cash reserves of 30.92M exceed inventory value of 104130 by 296.96x, indicating strong liquidity and inventory management.
  • Cash reserves of 30.92M provide robust 5.82x coverage of current liabilities 5.32M, indicating strong short-term solvency.
  • Cash position of 30.92M represents healthy 0.85x of working capital 36.20M, demonstrating strong operational liquidity.

Bear case

  • Investment activities of (2.39M) provide weak support for R&D spending of 10.83M, which is -0.22x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (30.51M) shows concerning coverage of stock compensation expenses of 13.76M, with a -2.22 ratio indicating potential earnings quality issues.
  • High receivables of 1.66M relative to inventory of 104130 (15.97 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (32.90M) provides weak coverage of capital expenditures of 2.39M, with a -13.75 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (45.35M) show weak coverage of depreciation charges of 5.20M, with a -8.71 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Waste Management
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 WM Waste Management Inc 99.66 Bn 99.17 7.44 23.36 Bn
2 RSG Republic Services, Inc. 73.30 Bn 99.83 7.97 13.27 Bn
3 WCN Waste Connections, Inc. 42.09 Bn 67.66 4.50 8.96 Bn
4 GFL GFL Environmental Inc. 16.72 Bn 6.39 3.34 5.71 Bn
5 CLH Clean Harbors Inc 13.63 Bn 35.09 2.29 3.02 Bn
6 CWST Casella Waste Systems Inc 6.36 Bn 417.00 3.54 1.23 Bn
7 NVRI ENVIRI Corp 1.48 Bn -8.91 0.66 1.67 Bn
8 MEG Montrose Environmental Group, Inc. 0.86 Bn -30.94 1.04 0.37 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.25 1.86
EV to Cash from Ops. EV/CFO -14.14 1.99
EV to Debt EV to Debt 1,547.91 141.65
EV to EBIT EV/EBIT -9.51 10.83
EV to EBITDA EV/EBITDA -11.61 -3.88
EV to Free Cash Flow [EV/FCF] EV/FCF -13.11 9.06
EV to Market Cap EV to Market Cap 0.99 0.66
EV to Revenue EV/Rev 85.85 8.81
Price to Book Value [P/B] P/B 4.54 4.15
Price to Earnings [P/E] P/E -9.61 33.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 4.52
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 7.28
Dividend per Basic Share Div per Share (Qtr) 0.00 0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.04
Interest Coverage Int. cover (Qtr) -2,125.04 -114.06
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 63.51 -42.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 436.01 59.31
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.43
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 17.97 1,182.04
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 20.19 332.85
EBIT Growth (1y) % EBIT 1y % (Qtr) 17.97 973.21
EBT Growth (1y) % EBT 1y % (Qtr) 17.97 159.54
EPS Growth (1y) % EPS 1y % (Qtr) 49.00 85.89
FCF Growth (1y) % FCF 1y % (Qtr) -36.58 -19.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -121.63 10.50
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.05 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 5.82 0.60
Current Ratio Curr Ratio (Qtr) 7.81 1.57
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.73
Interest Cover Ratio Int Coverage (Qtr) -2,125.04 -114.06
Times Interest Earned Times Interest Earned (Qtr) -2,125.04 -114.06
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -798.70 -42.95
EBIT Margin % EBIT Margin % (Qtr) -902.26 -56.49
EBT Margin % EBT Margin % (Qtr) -902.69 -61.58
Gross Margin % Gross Margin % (Qtr) -233.80 17.43
Net Profit Margin % Net Margin % (Qtr) -902.70 -71.04