ENVIRI Corp (NYSE: NVRI)

Sector: Industrials Industry: Waste Management CIK: 0000045876
Market Cap 1.48 Bn
P/B 4.11
P/E -8.91
P/S 0.66
ROIC (Qtr) -1.18
Div Yield % 0.00
Rev 1y % (Qtr) 0.21
Total Debt (Qtr) 1.67 Bn
Debt/Equity (Qtr) 4.62

About

Price action

Investment thesis

Bull case

  • Operating cash flow of 99.30M provides exceptional 24.65x coverage of minority interest expenses 4.03M, showing strong core operations.
  • Strong free cash flow of (17.46M) provides 513.59x coverage of acquisition spending (34000), indicating disciplined M&A strategy.
  • Robust tangible asset base of 1.76B provides 13.53x coverage of working capital 129.82M, indicating strong operational backing.
  • Cash position of 131.02M provides exceptional 32.53x coverage of minority interest expenses 4.03M, indicating strong liquidity.
  • Tangible assets of 1.76B provide robust 5.52x coverage of other current liabilities 318.37M, indicating strong asset backing.

Bear case

  • Operating cash flow of 99.30M barely covers its investment activities of (102.87M), with a coverage ratio of -0.97, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (102.87M) provide weak support for R&D spending of 3.61M, which is -28.50x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 131.02M provide limited coverage of acquisition spending of (34000), which is -3853.50x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 99.30M shows concerning coverage of stock compensation expenses of 32.16M, with a 3.09 ratio indicating potential earnings quality issues.
  • Free cash flow of (17.46M) provides weak coverage of capital expenditures of 116.76M, with a -0.15 ratio suggesting additional external financing needs for growth initiatives.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

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 1.08 1.86
EV to Cash from Ops. EV/CFO 30.37 1.99
EV to Debt EV to Debt 1.81 141.65
EV to EBIT EV/EBIT -51.67 10.83
EV to EBITDA EV/EBITDA 19.11 -3.88
EV to Free Cash Flow [EV/FCF] EV/FCF -172.72 9.06
EV to Market Cap EV to Market Cap 2.03 0.66
EV to Revenue EV/Rev 1.34 8.81
Price to Book Value [P/B] P/B 4.11 4.15
Price to Earnings [P/E] P/E -8.91 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) -0.53 -114.06
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 11.08 -42.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 15.81 59.31
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.43
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -175.34 1,182.04
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -39.23 332.85
EBIT Growth (1y) % EBIT 1y % (Qtr) -218.39 973.21
EBT Growth (1y) % EBT 1y % (Qtr) -164.14 159.54
EPS Growth (1y) % EPS 1y % (Qtr) -69.11 85.89
FCF Growth (1y) % FCF 1y % (Qtr) 17.86 -19.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -8.45 10.50
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.80 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.20 0.60
Current Ratio Curr Ratio (Qtr) 1.20 1.57
Debt to Equity Ratio Debt/Equity (Qtr) 4.62 0.73
Interest Cover Ratio Int Coverage (Qtr) -0.53 -114.06
Times Interest Earned Times Interest Earned (Qtr) -0.53 -114.06
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.40 -42.95
EBIT Margin % EBIT Margin % (Qtr) -2.60 -56.49
EBT Margin % EBT Margin % (Qtr) -7.50 -61.58
Gross Margin % Gross Margin % (Qtr) 18.40 17.43
Net Profit Margin % Net Margin % (Qtr) -7.40 -71.04