Econergy (ECNR) AI Stock Analysis

• Market Cap: 2.20B
• Dividend Yield: N/A
• Average Volume (3M): 17.28K
• Price to Earnings (P/E): 61.7
• Beta (1Y): 0.58
• Revenue Growth: -7.47%
• EPS Growth: -123.28%
• Country: IL
• Employees: 120
• Sector: Energy
• Sector Strength: 56
• Industry: Renewable Utilities
• EPS (TTM): -1.00
• Shares Outstanding: 56,188,090
• 10 Day Avg. Volume: 28,005
• 30 Day Avg. Volume: 17,280
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 3,472.00
• Price Target Upside: -9.79% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: 3,472.00 ▼(-9.79% Downside)

Econergy's overall stock score is primarily impacted by its financial performance challenges, including high leverage and cash flow instability. Technical analysis provides some support with bullish momentum, but valuation concerns due to a negative P/E ratio and lack of dividend yield weigh heavily on the score.

Positive Factors

Gross Profit Margin

A strong gross profit margin indicates efficient cost management, which can support long-term profitability and competitive pricing strategies.

Free Cash Flow Growth

Positive free cash flow growth, despite volatility, suggests potential for reinvestment in growth opportunities and debt reduction, enhancing financial flexibility.

Renewable Energy Focus

Focus on renewable energy aligns with global sustainability trends, positioning Econergy to benefit from increasing demand for clean energy solutions.

Negative Factors

High Leverage

High leverage can increase financial risk, limit flexibility, and strain cash flows, potentially impacting long-term financial stability and growth.

Revenue Decline

Declining revenue growth suggests challenges in market expansion or competitive pressures, which could impact long-term profitability and market position.

Cash Flow Instability

Cash flow instability can hinder the ability to fund operations and growth initiatives, posing a risk to financial health and strategic execution.

Econergy Business Overview & Revenue Model

Company Description

Econergy (ECNR) is a leading renewable energy company specializing in the development, construction, and operation of sustainable energy projects. The company focuses on harnessing solar, wind, and hydroelectric power to provide clean and efficient energy solutions. Econergy's core products and services include the sale of electricity generated from its renewable energy plants, as well as consulting and management services for energy optimization projects.

How the Company Makes Money

Econergy makes money primarily through the sale of electricity generated from its renewable energy assets to utilities, governments, and commercial clients under long-term power purchase agreements (PPAs). These agreements provide a stable and predictable revenue stream. Additionally, Econergy generates income by offering consulting services in energy management and optimization, helping clients reduce their carbon footprint and improve energy efficiency. The company also explores public-private partnerships to develop large-scale renewable energy projects, enhancing its revenue through shared investments and returns.

Econergy Financial Statement Overview

Summary

Econergy's financials indicate potential growth but with significant risks. The income statement shows strong revenue growth but declining net income and operational inefficiencies. The balance sheet is concerning due to high leverage, though there is some asset growth. Cash flow issues are critical, with negative operating cash flow and liquidity risks. Overall, financial stability and cash flow management are key challenges.

Income Statement

Econergy shows a highly volatile income statement with fluctuating revenue and profitability. The company's TTM revenue growth is significant, but net income has seen a marked decline. Gross profit margin remains strong, while net profit margin has worsened. EBIT and EBITDA margins indicate operational inefficiencies. Overall, the income statement suggests potential but also highlights operational challenges.

Balance Sheet

The balance sheet presents a mixed picture. Debt-to-equity ratio is high, suggesting significant leverage. Although total assets have increased, stockholders' equity growth hasn't kept pace, affecting the equity ratio. High leverage poses risks, yet the company has managed equity growth, albeit at a slower rate. The balance sheet reflects financial stability concerns and leverage dependency.

Cash Flow

Econergy's cash flow statements reveal considerable challenges. Operating cash flow is consistently negative, indicating cash generation issues. Free cash flow has deteriorated, and the free cash flow to net income ratio is unfavorable. Despite strong financing cash flows, these are not translating into sustainable cash flow from operations. The cash flow position highlights significant liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.12M	2.58M	1.10M	8.98M	976.00K	849.00K
Gross Profit	5.62M	2.00M	486.00K	7.33M	212.00K	126.00K
EBITDA	32.11M	36.04M	-8.98M	169.00K	-9.53M	-2.17M
Net Income	11.88M	19.92M	-11.29M	2.37M	-10.88M	-1.21M
Balance Sheet
Total Assets	785.93M	783.67M	372.14M	201.57M	136.28M	9.98M
Cash, Cash Equivalents and Short-Term Investments	171.63M	193.38M	52.41M	20.02M	87.50M	1.90M
Total Debt	390.90M	524.66M	205.38M	70.06M	69.19M	2.66M
Total Liabilities	444.97M	571.43M	235.28M	89.46M	77.47M	3.79M
Stockholders Equity	191.33M	161.25M	114.11M	100.74M	58.03M	-404.00K
Cash Flow
Free Cash Flow	-18.90M	-8.03M	-15.21M	-13.45M	-14.66M	-1.75M
Operating Cash Flow	-8.09M	-7.37M	-14.81M	-13.23M	-2.50M	-808.00K
Investing Cash Flow	-157.45M	-200.09M	-125.61M	-96.17M	-36.29M	-5.82M
Financing Cash Flow	290.68M	337.19M	173.91M	44.96M	123.13M	6.85M

Econergy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3849.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ECNR, the sentiment is Positive. The current price of 3849 is above the 20-day moving average (MA) of 3657.10, above the 50-day MA of 3552.86, and above the 200-day MA of 2972.19, indicating a bullish trend. The MACD of 95.37 indicates Negative momentum. The RSI at 64.32 is Neutral, neither overbought nor oversold. The STOCH value of 80.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ECNR.

Econergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.27B	7.60	4.09%	5.25%	4.03%	-61.87%
ENRG	61 Neutral	7.55B	34.90		2.88%	12.94%	-3.23%
MSKE	60 Neutral	3.29B	71.44		―	―	―
ECNR	47 Neutral	2.20B	61.68		―	-7.47%	-123.28%
NOFR	47 Neutral	3.78B	―		―	-4.97%	-31.61%
DORL	45 Neutral	3.00B	―		―	113.54%	-242.38%
PRIM	―	538.67M	―		―	―	―

Econergy Corporate Events

Econergy Boosts Share Capital Through Stock Options and Private Allocation

Econergy has announced an increase in its share capital through the exercise of employee stock options and a major private allocation of shares. This development suggests a strategic move to enhance capital resources, potentially impacting the company’s financial standing and providing new opportunities for growth, while also affecting stakeholders through dilution of existing shareholdings.