Econergy (ECNR) AI Stock Analysis

• Market Cap: 2.51B
• Dividend Yield: N/A
• Average Volume (3M): 19.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -9.53%
• EPS Growth: -125.66%
• Country: IL
• Employees: 120
• Sector: Energy
• Sector Strength: 52
• Industry: Renewable Utilities
• EPS (TTM): -1.00
• Shares Outstanding: 59,626,972
• 10 Day Avg. Volume: 16,123
• 30 Day Avg. Volume: 19,033
• PEG Ratio: -0.06
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 113.72
• P/FCF Ratio: -36.60
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: 3,817.00 ▼(-6.33% Downside)

Econergy's stock score reflects significant financial challenges, particularly in revenue growth and cash flow stability, compounded by high leverage. While technical indicators show some positive momentum, the valuation metrics suggest potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Gross Profit Margins

High gross profit margins indicate Econergy's effective cost management, enhancing its ability to sustain profitability despite revenue challenges.

Renewable Energy Focus

Econergy's focus on renewable energy aligns with global sustainability trends, positioning it well for long-term growth as demand for clean energy increases.

Free Cash Flow Growth

Despite starting from a negative base, the significant growth in free cash flow indicates potential for improved financial flexibility and investment capacity.

Negative Factors

High Leverage

High leverage can limit Econergy's financial flexibility and increase risk, potentially impacting its ability to invest in new projects or weather economic downturns.

Decline in Revenue Growth

A declining revenue growth rate suggests challenges in market expansion or competitive pressures, which could hinder long-term business sustainability.

Cash Flow Stability Issues

Persistent cash flow issues can strain Econergy's operations, affecting its ability to fund projects and meet financial obligations, impacting long-term viability.

Econergy Business Overview & Revenue Model

Company Description

Econergy Renewable Energy Ltd, an independent power producer company, develops, owns, and operates utility-scale renewable energy projects. The company's renewable energy projects produces and supplies power. It has solar, wind, and bio-gas plants. The company is headquartered in Kfar Saba, Israel.

How the Company Makes Money

Econergy generates revenue primarily through the sale of electricity produced by its renewable energy projects, which are often sold under long-term power purchase agreements (PPAs) with utilities and corporate buyers. Additionally, the company earns income through government incentives and tax credits related to renewable energy production. Another key revenue stream includes consulting services related to energy efficiency and sustainability strategies for businesses. Econergy may also engage in partnerships with other energy firms and government entities to develop large-scale energy projects, further enhancing its revenue potential.

Econergy Financial Statement Overview

Summary

Econergy's financial statements highlight significant challenges in revenue growth and cash flow stability, with high leverage posing potential risks. While there are strengths in gross profit margins and some improvements in profitability metrics, the overall financial health requires strategic focus on reducing debt and stabilizing cash flows to ensure long-term sustainability.

Income Statement

Econergy's income statement shows a mixed performance. The TTM data indicates a significant decline in revenue growth rate at -26.68%, which is concerning. However, the gross profit margin remains strong at 91.86%, suggesting efficient cost management. The net profit margin is low at 1.94%, indicating limited profitability. Historical data shows fluctuating EBIT and EBITDA margins, with recent improvements, but overall profitability remains a challenge.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 2.04 in the TTM period, indicating significant leverage and potential financial risk. Return on equity is modest at 7.58%, showing some profitability from equity investments. The equity ratio is not explicitly calculated, but the high leverage suggests a need for careful financial management to maintain stability.

Cash Flow

Cash flow analysis reveals challenges, with negative operating cash flow and free cash flow in the TTM period. The free cash flow growth rate is positive at 173.03%, but this is from a negative base, indicating volatility. The operating cash flow to net income ratio is negative, reflecting cash flow issues. The free cash flow to net income ratio is 2.34, suggesting some ability to cover net income, but overall cash flow stability is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.49M	2.58M	1.10M	8.98M	976.00K	849.00K
Gross Profit	3.80M	2.00M	486.00K	7.33M	212.00K	126.00K
EBITDA	30.36M	36.04M	-8.98M	169.00K	-9.53M	-2.17M
Net Income	501.00K	19.92M	-11.29M	2.37M	-10.88M	-1.21M
Balance Sheet
Total Assets	809.55M	783.67M	372.14M	201.57M	136.28M	9.98M
Cash, Cash Equivalents and Short-Term Investments	149.65M	193.38M	52.41M	20.02M	87.50M	1.90M
Total Debt	357.91M	524.66M	203.26M	70.06M	69.19M	2.66M
Total Liabilities	410.59M	571.43M	235.28M	89.46M	77.47M	3.79M
Stockholders Equity	240.43M	161.25M	114.11M	100.74M	58.03M	-404.00K
Cash Flow
Free Cash Flow	-51.59M	-8.03M	-15.21M	-13.45M	-14.66M	-1.75M
Operating Cash Flow	-9.17M	-7.37M	-14.81M	-13.23M	-2.50M	-808.00K
Investing Cash Flow	-184.60M	-200.09M	-125.61M	-96.17M	-36.29M	-5.82M
Financing Cash Flow	268.15M	337.19M	173.91M	44.96M	123.13M	6.85M

Econergy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4075.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4075 is below the 20-day moving average (MA) of 4109.45, above the 50-day MA of 3910.62, and above the 200-day MA of 3342.37, indicating a neutral trend. The MACD of 50.06 indicates Positive momentum. The RSI at 51.55 is Neutral, neither overbought nor oversold. The STOCH value of 66.07 is Neutral, 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	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
MSKE	61 Neutral	4.81B	―	―	―	―	―
ENRG	54 Neutral	8.49B	39.24	―	2.82%	-1.14%	6.47%
DORL	54 Neutral	4.42B	―	―	―	113.54%	-242.38%
ECNR	46 Neutral	2.51B	-116.59	―	―	-9.53%	-125.66%
NOFR	39 Underperform	3.91B	-44.41	―	―	5.79%	-13.05%