Eco Wave Power Global AB (publ) (NASDAQ: WAVE)

Sector: Utilities Industry: Utilities - Renewable CIK: 0001846715
Market Cap 28.35 Mn
P/B 4.51
P/E -8.37
P/S 168.73
ROIC (Qtr) -34.12
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 1.36 Mn
Debt/Equity (Qtr) 0.22
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About

Eco Wave Power Global AB (publ), also known as WAVE, is a company that operates in the renewable energy industry. It is a wave energy company that develops and commercializes innovative wave energy conversion technology with the aim of revolutionizing energy production and becoming a leader in the industry. WAVE's primary business activities involve the development and commercialization of its wave energy conversion technology. This technology is implemented onshore or nearshore and draws energy from incoming waves by converting the rising and...

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Investment thesis

Bull case

  • Healthy cash reserves of 5.55M provide 4.21x coverage of short-term debt 1.32M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 8.63M provides 6.33x coverage of total debt 1.36M, indicating robust asset backing and low credit risk.
  • Long-term investments of 513000 provide solid 10.91x coverage of long-term debt 47000, indicating strategic financial planning.
  • Cash position of 5.55M provides exceptional 154.17x coverage of minority interest expenses 36000, indicating strong liquidity.
  • Tangible assets of 8.63M provide robust 7.78x coverage of other current liabilities 1.11M, indicating strong asset backing.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 693000, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 0 barely covers operating expenses of (267000) with a -0 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Short-term investments of 1.30M exceed receivables of 131000 by 9.94x, indicating potentially inefficient capital allocation given collection cycle needs.
  • Tangible assets of 8.63M provide limited backing for working capital of 4.49M, which is 1.92x, suggesting increased operational risk in market downturns.
  • Other non-current assets of 1000 provide minimal coverage for long-term debt of 47000, which is 0.02x, indicating potential asset-liability mismatch.

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 2.67 0.82
EV to Cash from Ops. EV/CFO -9.42 3.77
EV to Debt EV to Debt 16.92 -7.57
EV to EBIT EV/EBIT -9.61 18.11
EV to EBITDA EV/EBITDA -9.91 5.59
EV to Free Cash Flow [EV/FCF] EV/FCF -9.46 -9.43
EV to Market Cap EV to Market Cap 0.81 -1.15
EV to Revenue EV/Rev 137.33 -22.88
Price to Book Value [P/B] P/B 4.51 2.64
Price to Earnings [P/E] P/E -8.37 1.37
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) -2.43 -4.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -691.81
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -21.11 37.74
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.15
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -16.67 -300.29
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -47.88
EBIT Growth (1y) % EBIT 1y % (Qtr) -16.67 -76.46
EBT Growth (1y) % EBT 1y % (Qtr) -53.44 -85.90
EPS Growth (1y) % EPS 1y % (Qtr) -63.04 398.06
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 1,637.76
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -47.28 93.44
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.35
Cash Payout Ratio Cash Payout Ratio 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 2.23 1.83
Current Ratio Curr Ratio (Qtr) 2.80 2.29
Debt to Equity Ratio Debt/Equity (Qtr) 0.22 0.89
Interest Cover Ratio Int Coverage (Qtr) -2.43 -4.73
Times Interest Earned Times Interest Earned (Qtr) -2.43 -4.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -241.05
EBIT Margin % EBIT Margin % (Qtr) -1,428.57 -107.41
EBT Margin % EBT Margin % (Qtr) -2,016.67 -407.45
Gross Margin % Gross Margin % (Qtr) 75.00 9.67
Net Profit Margin % Net Margin % (Qtr) -2,016.70 -408.25