Energy Vault Holdings, Inc. (NYSE: NRGV)

Sector: Utilities Industry: Utilities - Renewable CIK: 0001828536
Market Cap 490.15 Mn
P/B 6.08
P/E -3.39
P/S 5.85
ROIC (Qtr) -111.55
Div Yield % 0.00
Rev 1y % (Qtr) 2,678.90
Total Debt (Qtr) 60.17 Mn
Debt/Equity (Qtr) 0.75
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About

Energy Vault Holdings, Inc. (NRGV) operates in the energy storage industry, providing innovative solutions to facilitate the global transition to renewable energy. The company's mission is to create energy storage systems that contribute to a clean energy future. Energy Vault is engaged in the development and deployment of utility-scale energy storage solutions, including proprietary gravity, battery, and green hydrogen energy storage systems. These solutions are designed to tackle the intermittency issues associated with renewable energy production....

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Investment thesis

Bull case

  • Operating cash flow of (33.90M) provides exceptional 458.09x coverage of minority interest expenses (74000), showing strong core operations.
  • Strong tangible asset base of 275.60M provides 4.58x coverage of total debt 60.17M, indicating robust asset backing and low credit risk.
  • Long-term investments of 33.63M provide solid 1.07x coverage of long-term debt 31.56M, indicating strategic financial planning.
  • Cash reserves of 35.20M exceed inventory value of 7.03M by 5.01x, indicating strong liquidity and inventory management.
  • Strong tangible asset base of 275.60M provides 43.84x coverage of intangibles 6.29M, indicating robust asset quality.

Bear case

  • Operating cash flow of (33.90M) barely covers its investment activities of (43.44M), with a coverage ratio of 0.78, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (43.44M) provide weak support for R&D spending of 17.64M, which is -2.46x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (33.90M) provides insufficient coverage of deferred revenue obligations of 63.60M, which is -0.53x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (33.90M) shows concerning coverage of stock compensation expenses of 37.68M, with a -0.90 ratio indicating potential earnings quality issues.
  • High receivables of 52.96M relative to inventory of 7.03M (7.54 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Utilities - Renewable
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CEG Constellation Energy Corp 98.92 Bn 153.61 4.71 9.04 Bn
2 ENLT Enlight Renewable Energy Ltd. 9.32 Bn 66.03 14.79 5.54 Bn
3 BEP Brookfield Renewable Partners L.P. 9.20 Bn -37.24 1.46 39.66 Bn
4 ORA Ormat Technologies, Inc. 5.64 Bn 146.14 14.39 2.75 Bn
5 CWEN Clearway Energy, Inc. 4.62 Bn 184.82 3.85 9.22 Bn
6 FLNC Fluence Energy, Inc. 2.37 Bn -45.59 0.93 0.39 Bn
7 RNW ReNew Energy Global plc 1.93 Bn 14.53 1.21 9.22 Bn
8 XIFR XPLR Infrastructure, LP 1.00 Bn -35.67 0.84 6.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.66 0.82
EV to Cash from Ops. EV/CFO -13.84 3.77
EV to Debt EV to Debt 7.80 -7.57
EV to EBIT EV/EBIT -3.58 18.11
EV to EBITDA EV/EBITDA -4.10 5.59
EV to Free Cash Flow [EV/FCF] EV/FCF -6.27 -9.43
EV to Market Cap EV to Market Cap 0.96 -1.15
EV to Revenue EV/Rev 5.60 -22.88
Price to Book Value [P/B] P/B 6.08 2.64
Price to Earnings [P/E] P/E -3.39 1.37
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -4.71
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -0.74
Dividend per Basic Share Div per Share (Qtr) 0.00 0.32
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 12.62
Interest Coverage Int. cover (Qtr) -24.18 -4.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 28.68 -691.81
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -54.68 37.74
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.15
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -44.77 -300.29
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -11.40 -47.88
EBIT Growth (1y) % EBIT 1y % (Qtr) -36.78 -76.46
EBT Growth (1y) % EBT 1y % (Qtr) -42.28 -85.90
EPS Growth (1y) % EPS 1y % (Qtr) -43.08 398.06
FCF Growth (1y) % FCF 1y % (Qtr) -35.90 1,637.76
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 149.30 93.44
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.30 0.35
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.21 1.83
Current Ratio Curr Ratio (Qtr) 0.63 2.29
Debt to Equity Ratio Debt/Equity (Qtr) 0.75 0.89
Interest Cover Ratio Int Coverage (Qtr) -24.18 -4.73
Times Interest Earned Times Interest Earned (Qtr) -24.18 -4.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -153.50 -241.05
EBIT Margin % EBIT Margin % (Qtr) -156.53 -107.41
EBT Margin % EBT Margin % (Qtr) -163.00 -407.45
Gross Margin % Gross Margin % (Qtr) 22.70 9.67
Net Profit Margin % Net Margin % (Qtr) -172.60 -408.25