Perma Fix Environmental Services Inc (NASDAQ: PESI)

Sector: Industrials Industry: Waste Management CIK: 0000891532
Market Cap 257.99 Mn
P/B 4.66
P/E -22.22
P/S 4.25
ROIC (Qtr) -20.04
Div Yield % 0.00
Rev 1y % (Qtr) 3.82
Total Debt (Qtr) 4.12 Mn
Debt/Equity (Qtr) 0.07

About

Perma-Fix Environmental Services, Inc. (PESI), a prominent player in the environmental services industry, offers a diverse range of services and products to customers across various sectors. The company's primary business activities encompass waste treatment, storage, and disposal, along with environmental consulting and remediation services. These activities are carried out in the United States and internationally, making Perma-Fix a global entity in the environmental services sector. The company's revenue generation is primarily driven by its...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 16.41M provide 14.46x coverage of short-term debt 1.14M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 80.17M provides 19.46x coverage of total debt 4.12M, indicating robust asset backing and low credit risk.
  • Tangible assets of 80.17M provide exceptional 11.27x coverage of deferred revenue 7.11M, showing strong service capability backing.
  • Robust tangible asset base of 80.17M provides 4.36x coverage of working capital 18.39M, indicating strong operational backing.
  • Long-term investments of 13.08M provide solid 4.38x coverage of long-term debt 2.98M, indicating strategic financial planning.

Bear case

  • Investment activities of (4M) provide weak support for R&D spending of 1.34M, which is -2.99x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (11.93M) provides insufficient coverage of deferred revenue obligations of 7.11M, which is -1.68x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (11.93M) shows concerning coverage of stock compensation expenses of 1.26M, with a -9.46 ratio indicating potential earnings quality issues.
  • High receivables of 20.28M relative to inventory of 1.11M (18.22 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of (11.93M) provides minimal -88.39x coverage of tax expenses of 135000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Customer Breakdown of Revenue (2024)

Concentration Risk Benchmark 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 2.63 1.86
EV to Cash from Ops. EV/CFO -20.09 1.99
EV to Debt EV to Debt 58.21 141.65
EV to EBIT EV/EBIT -21.96 10.83
EV to EBITDA EV/EBITDA -23.22 -3.88
EV to Free Cash Flow [EV/FCF] EV/FCF -15.28 9.06
EV to Market Cap EV to Market Cap 0.93 0.66
EV to Revenue EV/Rev 3.95 8.81
Price to Book Value [P/B] P/B 4.66 4.15
Price to Earnings [P/E] P/E -22.22 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) -19.46 -114.06
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -47.43 -42.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 55.31 59.31
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.43
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 29.67 1,182.04
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.37 332.85
EBIT Growth (1y) % EBIT 1y % (Qtr) 9.28 973.21
EBT Growth (1y) % EBT 1y % (Qtr) 8.72 159.54
EPS Growth (1y) % EPS 1y % (Qtr) 40.37 85.89
FCF Growth (1y) % FCF 1y % (Qtr) -108.12 -19.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 44.61 10.50
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.67 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.69 0.60
Current Ratio Curr Ratio (Qtr) 1.77 1.57
Debt to Equity Ratio Debt/Equity (Qtr) 0.07 0.73
Interest Cover Ratio Int Coverage (Qtr) -19.46 -114.06
Times Interest Earned Times Interest Earned (Qtr) -19.46 -114.06
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -15.10 -42.95
EBIT Margin % EBIT Margin % (Qtr) -18.00 -56.49
EBT Margin % EBT Margin % (Qtr) -18.92 -61.58
Gross Margin % Gross Margin % (Qtr) 8.80 17.43
Net Profit Margin % Net Margin % (Qtr) -19.10 -71.04