Energy & Environmental Services (EESE) AI Stock Analysis

• Market Cap: $3.33M
• Dividend Yield: N/A
• Average Volume (3M): 9.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: -35.53%
• EPS Growth: -362.50%
• Country: US
• Employees: 4
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): N/A
• Shares Outstanding: 51,253,000
• 10 Day Avg. Volume: 3,310
• 30 Day Avg. Volume: 9,926
• PEG Ratio: -0.01
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -8.07
• Enterprise Value/Market Cap: 2.02
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 1.18
• Enterprise Value/Ebitda: 19.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $0.00 ▼(-100.00% Downside)

The overall stock score of 48 reflects significant financial challenges, including declining revenues and negative profitability margins. While technical analysis shows some short-term positive trends, the valuation remains unattractive due to a negative P/E ratio and lack of dividend yield. The absence of earnings call insights and corporate events further limits the assessment.

Positive Factors

Sustainable Energy Solutions

EESE's focus on sustainable energy solutions positions it well in a growing market for renewable energy and environmental services, offering long-term growth potential as demand for sustainable practices increases globally.

Strategic Partnerships

Collaborations with governments and enterprises provide EESE with stable revenue streams and opportunities for growth through large-scale sustainability projects, strengthening its competitive position.

Government Incentives

Government incentives for renewable energy projects provide a financial boost and encourage further adoption of EESE's solutions, supporting revenue growth and market expansion.

Negative Factors

Declining Revenues

A significant decline in revenues indicates potential loss of market share or operational inefficiencies, which could hinder long-term growth and financial stability if not addressed.

Negative Profit Margins

Consistently negative profit margins suggest ongoing operational challenges, impacting the company's ability to generate sustainable profits and invest in growth opportunities.

Cash Flow Challenges

Negative cash flow highlights inefficiencies in operations and limits the company's ability to fund new projects or manage debt, posing a risk to financial health and growth prospects.

Energy & Environmental Services Business Overview & Revenue Model

Company Description

Energy and Environmental Services, Inc. manufactures and sells custom liquids and solid chemicals for the oil, gas, and agricultural industries. It provides oilfield chemicals for frac and stimulation, completion, and production phases, including scale inhibitors, corrosion inhibitors, packer fluid inhibitors, paraffin dispersant compounds H2S scavengers, biocides, water treating compounds, demulsifiers, emulsion breakers, nonemulsifiers, frac foamers, clay stabilizers, liquid KCL substitutes, cross linkers, wetting agents/surfactants, friction reducers, anti-sludge agents, mutual solvents, silt suspenders, iron sequestrants, iron control products, complete acid gel systems, xylene/acid emulsifiers, and HCl acid retarders under the Enduro-Tech name. The company also offers custom chemical blending, toll blending, and private labeling services to downhole production chemical companies. In addition, it provides powdered coatings under the Enduro-Bond trademark; and Ecozyme system technologies in the industries of agriculture, livestock feed supplements / products, and malodor elimination. Energy and Environmental Services, Inc. is based in Edmond, Oklahoma. As of November 4, 2015, Energy and Environmental Services, Inc. operates as a subsidiary of BlueHawk Energy, Inc.

How the Company Makes Money

EESE generates revenue through several key streams. Primarily, the company earns income from the installation and maintenance of renewable energy systems, such as solar panels and wind turbines, which are often supported by government incentives and subsidies. Additionally, EESE provides consulting services for energy efficiency audits, helping clients identify savings opportunities and reduce their carbon footprint, which is billed on a project basis. Revenue is also derived from waste management services, including recycling and disposal contracts with municipal and commercial clients. Strategic partnerships with governments and private enterprises enhance EESE's market presence and create additional revenue opportunities through collaborative projects and grants aimed at sustainability initiatives.

Energy & Environmental Services Financial Statement Overview

Summary

Energy & Environmental Services faces substantial financial challenges, with declining revenues, negative profitability margins, and cash flow issues. While the balance sheet shows moderate leverage, the overall financial health is weakened by consistent net losses and negative cash flow metrics.

Income Statement

The income statement reveals a concerning trend with declining revenues over the last few years, culminating in a significant drop from $18.6M in 2023 to $12.0M in 2024. Gross profit margins have decreased, and the company has consistently reported net losses, with a net profit margin of -6.6% in 2024. The EBIT and EBITDA margins are also negative, indicating operational challenges. The revenue growth rate is negative, reflecting a contraction in business activities.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.50 in 2024, indicating manageable leverage. However, stockholders' equity has decreased over the years, and the equity ratio stands at 57.2%, suggesting a stable but not robust financial structure. Return on equity is negative due to net losses, which is a concern for potential investors.

Cash Flow

Cash flow analysis indicates significant challenges, with negative free cash flow in 2024 and a decline from positive free cash flow in 2023. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting income into cash. The free cash flow to net income ratio is also negative, pointing to cash flow issues that need addressing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.02M	18.64M	20.08M	13.72M	8.53M
Gross Profit	5.67M	8.15M	10.45M	6.36M	4.78M
EBITDA	342.00K	1.73M	2.89M	1.62M	-1.38M
Net Income	-794.70K	-171.70K	965.70K	825.60K	-1.74M
Balance Sheet
Total Assets	15.45M	15.87M	18.64M	15.18M	13.59M
Cash, Cash Equivalents and Short-Term Investments	1.21M	1.40M	2.00M	739.40K	1.74M
Total Debt	4.41M	4.31M	5.86M	3.35M	3.96M
Total Liabilities	6.62M	6.25M	8.86M	6.36M	5.61M
Stockholders Equity	8.83M	9.62M	9.78M	8.82M	7.98M
Cash Flow
Free Cash Flow	-434.40K	576.50K	-1.31M	-2.04M	-1.22M
Operating Cash Flow	-310.40K	1.17M	542.50K	-939.80K	-802.80K
Investing Cash Flow	17.30K	-369.60K	-1.80M	-1.01M	-709.90K
Financing Cash Flow	102.40K	-1.55M	2.51M	953.00K	1.65M

Energy & Environmental Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EESE, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.92 is Neutral, neither overbought nor oversold. The STOCH value of 74.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EESE.

Energy & Environmental Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ASIX	58 Neutral	$496.72M	9.62	6.62%	3.81%	-5.05%	35.01%
RYAM	52 Neutral	$502.54M	-1.21	-78.11%	―	-9.75%	-386.63%
FF	51 Neutral	$142.80M	-4.13	-18.09%	7.12%	-49.82%	-195.74%
EESE	48 Neutral	$3.33M	-4.39	-8.61%	―	-35.53%	-362.50%
VHI	47 Neutral	$393.12M	21.05	1.78%	2.71%	-0.65%	-79.35%
ORGN	40 Underperform	$32.60M	-0.45	-21.13%	―	-28.47%	16.83%