Eos Energy Enterprises, Inc. (NASDAQ: EOSE)

Sector: Industrials Industry: Electrical Equipment & Parts CIK: 0001805077
Market Cap 2.89 Bn
P/B -1.25
P/E -1.47
P/S 45.58
ROIC (Qtr) 18.20
Div Yield % 0.00
Rev 1y % (Qtr) 3,472.83
Total Debt (Qtr) 451.05 Mn
Debt/Equity (Qtr) -0.19
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About

Eos Energy Enterprises, Inc., often referred to as Eos, is a prominent player in the energy storage solutions industry. The company's shares are publicly traded on the NASDAQ stock exchange under the ticker symbol EOSE. Eos Energy Enterprises specializes in providing innovative zinc-based energy storage solutions for utility-scale, microgrid, and commercial and industrial applications. The company's primary offerings include the Znyth battery energy storage system (BESS), a validated chemistry solution designed with non-precious earth components....

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Investment thesis

Bull case

  • Healthy cash reserves of 95.68M provide 32.62x coverage of short-term debt 2.93M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust tangible asset base of 322.80M provides 3.78x coverage of working capital 85.38M, indicating strong operational backing.
  • Tangible assets of 322.80M provide robust 6.65x coverage of other current liabilities 48.53M, indicating strong asset backing.
  • Cash reserves of 95.68M provide robust 0.93x coverage of current liabilities 103.35M, indicating strong short-term solvency.
  • Strong cash position of 95.68M provides 1.97x coverage of other current liabilities 48.53M, indicating excellent liquidity.

Bear case

  • Investment activities of (42.84M) provide weak support for R&D spending of 26.84M, which is -1.60x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (203.61M) shows concerning coverage of stock compensation expenses of 27.50M, with a -7.40 ratio indicating potential earnings quality issues.
  • Operating cash flow of (203.61M) provides minimal -10716.32x coverage of tax expenses of 19000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (245.51M) provides weak coverage of capital expenditures of 41.90M, with a -5.86 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (1.09B) show weak coverage of depreciation charges of 13.15M, with a -83.25 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Electrical Equipment & Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VRT Vertiv Holdings Co 93.00 Bn 69.78 9.09 3.16 Bn
2 BE Bloom Energy Corp 34.73 Bn -392.76 17.16 2.99 Bn
3 HUBB Hubbell Inc 27.97 Bn 31.52 4.78 2.33 Bn
4 NVT nVent Electric plc 19.43 Bn 76.81 8.40 1.56 Bn
5 AYI Acuity Inc. (De) 12.85 Bn 109.95 6.86 0.91 Bn
6 AEIS Advanced Energy Industries Inc 11.80 Bn 79.52 6.56 0.68 Bn
7 NVX NOVONIX Ltd 11.53 Bn -174.00 1,943.36 -
8 ENS EnerSys 6.79 Bn 21.71 1.82 1.18 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 9.71 3.49
EV to Cash from Ops. EV/CFO -15.66 9.10
EV to Debt EV to Debt 7.07 113.17
EV to EBIT EV/EBIT -2.91 -17.64
EV to EBITDA EV/EBITDA -14.72 3.56
EV to Free Cash Flow [EV/FCF] EV/FCF -12.99 39.13
EV to Market Cap EV to Market Cap 1.10 2.59
EV to Revenue EV/Rev 50.24 77.74
Price to Book Value [P/B] P/B -1.25 4.98
Price to Earnings [P/E] P/E -1.47 23.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -2.31 -2.92
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.27
Dividend per Basic Share Div per Share (Qtr) 0.00 0.37
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.79
Interest Coverage Int. cover (Qtr) -48.27 -16.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -48.64 -135.37
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 273.16 92.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.22
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -152.97 -45.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -38.12 -56.26
EBIT Growth (1y) % EBIT 1y % (Qtr) -152.98 -64.20
EBT Growth (1y) % EBT 1y % (Qtr) -143.46 8.52
EPS Growth (1y) % EPS 1y % (Qtr) -223.24 13.91
FCF Growth (1y) % FCF 1y % (Qtr) -38.80 -66.58
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -35.23 15.53
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.19 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.10
Cash Ratio Cash Ratio (Qtr) 0.93 3.50
Current Ratio Curr Ratio (Qtr) 1.83 5.07
Debt to Equity Ratio Debt/Equity (Qtr) -0.19 0.41
Interest Cover Ratio Int Coverage (Qtr) -48.27 -16.86
Times Interest Earned Times Interest Earned (Qtr) -48.27 -16.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1,704.20 -1,947.23
EBIT Margin % EBIT Margin % (Qtr) -1,724.95 -2,051.19
EBT Margin % EBT Margin % (Qtr) -1,760.69 -2,170.94
Gross Margin % Gross Margin % (Qtr) -177.90 2.02
Net Profit Margin % Net Margin % (Qtr) -3,100.70 -2,202.04