Aqua Metals, Inc. (NASDAQ: AQMS)

Sector: Industrials Industry: Waste Management CIK: 0001621832
Market Cap 4.88 Mn
P/B 0.75
P/E -0.19
P/S 0.00
ROIC (Qtr) -437.47
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Aqua Metals, Inc. (AQMS) operates in the metal recycling industry, a sector that is witnessing significant growth due to the increasing demand for sustainable and environmentally friendly practices. The company, formed in 2014, has developed a groundbreaking metal recycling technology known as AquaRefining, which employs a clean, closed-loop process to produce high-purity metals. Aqua Metals' primary business activities revolve around the recycling of metals, with a particular focus on recovering high-purity metals from spent lithium-ion batteries....

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Price action

Investment thesis

Bull case

  • Robust tangible asset base of 10.41M provides 20.49x coverage of working capital 508000, indicating strong operational backing.
  • Cash reserves of 3.59M provide robust 1.04x coverage of current liabilities 3.46M, indicating strong short-term solvency.
  • Cash reserves of 3.59M provide solid 6.86x coverage of other non-current liabilities 523000, indicating strong liquidity.
  • Cash reserves of 3.59M exceed inventory value of 244000 by 14.70x, indicating strong liquidity and inventory management.
  • Cash position of 3.59M represents healthy 7.06x of working capital 508000, demonstrating strong operational liquidity.

Bear case

  • Operating cash flow of (9.64M) barely covers its investment activities of 4.40M, with a coverage ratio of -2.19, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of (9.64M) shows concerning coverage of stock compensation expenses of 2.35M, with a -4.11 ratio indicating potential earnings quality issues.
  • Operating cash flow of (9.64M) provides minimal -4821.50x coverage of tax expenses of 2000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (24.69M) show weak coverage of depreciation charges of 1.14M, with a -21.58 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (9.64M) barely covers operating expenses of 11.67M with a -0.83 ratio, suggesting thin operational efficiency margins and limited flexibility.

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 0.28 1.86
EV to Cash from Ops. EV/CFO -0.31 1.99
EV to Debt EV to Debt 0.00 141.65
EV to EBIT EV/EBIT -0.12 10.83
EV to EBITDA EV/EBITDA -0.12 -3.88
EV to Free Cash Flow [EV/FCF] EV/FCF -0.54 9.06
EV to Market Cap EV to Market Cap 0.60 0.66
EV to Revenue EV/Rev 0.00 8.81
Price to Book Value [P/B] P/B 0.75 4.15
Price to Earnings [P/E] P/E -0.19 33.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) -25.69 -114.06
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 127.77 -42.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 21.56 59.31
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.43
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 7.75 1,182.04
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 6.41 332.85
EBIT Growth (1y) % EBIT 1y % (Qtr) 7.75 973.21
EBT Growth (1y) % EBT 1y % (Qtr) 5.48 159.54
EPS Growth (1y) % EPS 1y % (Qtr) 36.24 85.89
FCF Growth (1y) % FCF 1y % (Qtr) 82.82 -19.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 62.14 10.50
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.04 0.60
Current Ratio Curr Ratio (Qtr) 1.15 1.57
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.73
Interest Cover Ratio Int Coverage (Qtr) -25.69 -114.06
Times Interest Earned Times Interest Earned (Qtr) -25.69 -114.06
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -42.95
EBIT Margin % EBIT Margin % (Qtr) 0.00 -56.49
EBT Margin % EBT Margin % (Qtr) 0.00 -61.58
Gross Margin % Gross Margin % (Qtr) 0.00 17.43
Net Profit Margin % Net Margin % (Qtr) 0.00 -71.04