CleanCore Solutions, Inc. (NYSE: ZONE)

Sector: Industrials Industry: Pollution & Treatment Controls CIK: 0001956741
Market Cap 21.22 Mn
P/B 0.23
P/E -0.17
P/S 6.20
ROIC (Qtr) -25.13
Div Yield % 0.00
Rev 1y % (Qtr) 315.46
Total Debt (Qtr) 347,473.00
Debt/Equity (Qtr) 0.00
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About

Investment thesis

Bull case

  • Healthy cash reserves of 7.40M provide 48.73x coverage of short-term debt 151931, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 97.03M provides 279.24x coverage of total debt 347473, indicating robust asset backing and low credit risk.
  • Long-term investments of 86.26M provide solid 441.11x coverage of long-term debt 195542, indicating strategic financial planning.
  • Strong free cash flow of (7.88M) provides 13.55x coverage of acquisition spending (581792), indicating disciplined M&A strategy.
  • Robust tangible asset base of 97.03M provides 29.39x coverage of working capital 3.30M, indicating strong operational backing.

Bear case

  • Operating cash flow of (7.84M) barely covers its investment activities of (149.23M), with a coverage ratio of 0.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 7.40M provide limited coverage of acquisition spending of (581792), which is -12.73x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (7.84M) shows concerning coverage of stock compensation expenses of 10.71M, with a -0.73 ratio indicating potential earnings quality issues.
  • Operating earnings of (122.26M) show weak coverage of depreciation charges of 258282, with a -473.37 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (7.88M) provides weak coverage of capital expenditures of 40398, with a -195.14 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Pollution & Treatment Controls
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VLTO Veralto Corp 22.76 Bn 26.05 4.31 2.67 Bn
2 ZWS Zurn Elkay Water Solutions Corp 8.65 Bn 43.69 5.10 0.54 Bn
3 FSS Federal Signal Corp /De/ 7.21 Bn 168.93 10.04 0.24 Bn
4 CECO Ceco Environmental Corp 2.77 Bn 53.33 3.85 0.24 Bn
5 PCT PureCycle Technologies, Inc. 1.46 Bn -6.40 258.45 0.43 Bn
6 ERII Energy Recovery, Inc. 0.91 Bn 46.74 6.75 0.00 Bn
7 ADUR Aduro Clean Technologies Inc. 0.33 Bn -23.93 1,516.99 0.00 Bn
8 ARQ Arq, Inc. 0.13 Bn -34.10 1.13 0.03 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.09 3.33
EV to Cash from Ops. EV/CFO -1.11 -65.71
EV to Debt EV to Debt 25.01 136.79
EV to EBIT EV/EBIT -0.07 3.75
EV to EBITDA EV/EBITDA -0.26 8.77
EV to Free Cash Flow [EV/FCF] EV/FCF -1.10 2.21
EV to Market Cap EV to Market Cap 0.41 1.03
EV to Revenue EV/Rev 2.54 89.55
Price to Book Value [P/B] P/B 0.23 6.68
Price to Earnings [P/E] P/E -0.17 15.25
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.12
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.26
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.56
Interest Coverage Int. cover (Qtr) -353.28 -107.95
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -118.51 -82.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1,220.88 79.04
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.42
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -3,851.11 -265.30
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -1,035.61 -75.61
EBIT Growth (1y) % EBIT 1y % (Qtr) -3,851.11 -272.40
EBT Growth (1y) % EBT 1y % (Qtr) -3,548.26 -325.95
EPS Growth (1y) % EPS 1y % (Qtr) -225.00 2,177.75
FCF Growth (1y) % FCF 1y % (Qtr) -163.25 -76.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 169.36 7.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.03 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.04 2.16
Current Ratio Curr Ratio (Qtr) 1.47 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.60
Interest Cover Ratio Int Coverage (Qtr) -353.28 -107.95
Times Interest Earned Times Interest Earned (Qtr) -353.28 -107.95
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -3,563.00 -775.28
EBIT Margin % EBIT Margin % (Qtr) -3,570.54 -2,721.83
EBT Margin % EBT Margin % (Qtr) -3,580.65 -2,762.77
Gross Margin % Gross Margin % (Qtr) 58.50 -44.42
Net Profit Margin % Net Margin % (Qtr) -3,580.70 -2,763.74