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Perma-fix Environmental Services (PESI)
:PESI
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Perma-Fix
(NASDAQ:PESI)
41Neutral
Positive Factors
Financial Performance
The recent $23M equity offering strengthens the balance sheet and supports capitalizing on transformative opportunities for growth and profitability.
Project Development
The Direct Feed Low-Activity Waste program's commercialization is on track, promising meaningful revenue and profitability for at least a decade.
Revenue Growth
Revenue is expected to improve with strong performance driven by progress on multiple opportunities.
Negative Factors
Government Initiatives
Increased uncertainty on the timing of waste procurements and services due to Department of Government Efficiency initiatives and an upcoming government budget deadline.
Industry Activity
Procurements and activity levels industry-wide could be impacted due to Department of Energy layoffs.
Procurement Delays
Lower revenue was reported due to delays in procurements and contract awards from government clients, primarily in Treatment.
Perma-Fix (PESI) vs. S&P 500 (SPY)
Market Cap
$135.45M
Dividend YieldN/A
Average Volume (3M)202.29K
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth-34.12%
EPS Growth-3803.38%
CountryUS
Employees293
SectorIndustrials
Sector Strength68
IndustryWaste Management
Share Statistics
EPS (TTM)-1.31
Shares Outstanding18,428,392
10 Day Avg. Volume227,046
30 Day Avg. Volume202,288
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.17
Price to Cash Flow (P/CF)-9.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.00Price Target Upside151.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Perma-Fix Business Overview & Revenue Model
Company DescriptionPerma-Fix Environmental Services, Inc. (PESI) is a leading provider of nuclear and mixed waste management services, serving both government and commercial sectors. The company specializes in the treatment, storage, disposal, and remediation of hazardous and radioactive waste. Perma-Fix operates through several facilities across the United States, offering comprehensive solutions to meet the complex environmental challenges faced by its clients.
How the Company Makes MoneyPerma-Fix makes money primarily through its waste management services, which include the treatment and disposal of nuclear and hazardous waste. The company generates revenue from contracts with government agencies, such as the U.S. Department of Energy and Department of Defense, as well as commercial clients in various industries. Perma-Fix's revenue streams are bolstered by long-term contracts and its capability to handle complex waste streams, which often require specialized facilities and expertise. Additionally, the company benefits from strategic partnerships and collaborations that enhance its service offerings and expand its market reach.
Perma-Fix Financial Statement Overview
Summary
Perma-Fix's financial performance shows significant challenges with declining revenues, negative operational margins, and a negative equity position. The company's history indicates potential for recovery but requires strategic interventions for stabilization.Income Statement
Perma-Fix's income statement reveals significant volatility. The company experienced a decline in total revenue in 2024, alongside negative EBIT and Net Income, which indicates operational challenges. However, in previous years, there were periods of revenue growth and positive net income, showing potential if the company can stabilize operations.40
Negative
Balance Sheet
The balance sheet highlights concerns with a negative stockholders' equity in 2024, indicating financial instability. The company has low debt, which is positive, but the negative equity ratio poses a risk. Previous years showed a healthier balance sheet, suggesting the need for improved capital management.30
Negative
Cash Flow
Cash flow analysis shows fluctuating cash flows with a lack of free cash flow in 2024, reflecting operational cash challenges. Historically, the company has had periods with positive operating cash flow, but the inability to generate consistent free cash flow is a significant concern.25
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 59.12M | 89.73M | 70.60M | 72.19M | 105.43M | Gross Profit |
| 2.00K | 16.37M | 9.61M | 6.82M | 15.89M | EBIT |
| -15.68M | 756.00K | -5.38M | -6.77M | 1.82M | EBITDA |
| -12.90M | 3.92M | -1.24M | -823.00K | 4.95M | Net Income Common Stockholders |
| -19.98M | 485.00K | -3.21M | 835.00K | 2.86M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 28.98M | 7.50M | 1.87M | 4.44M | 7.92M | Total Assets |
| 97.25M | 78.75M | 70.90M | 77.30M | 78.92M | Total Debt |
| 4.86M | 5.87M | 1.04M | 993.00K | 6.73M | Net Debt |
| -24.11M | -1.64M | -827.00K | -3.45M | -1.20M | Total Liabilities |
| 34.86M | 39.37M | 33.37M | 36.72M | 46.47M | Stockholders Equity |
| -815.00K | 39.38M | 37.53M | 40.58M | 34.19M |
| Cash Flow | Free Cash Flow | |||
| -18.82M | 4.43M | -1.58M | -8.41M | 5.65M | Operating Cash Flow |
| -14.74M | 6.15M | -553.00K | -6.84M | 7.37M | Investing Cash Flow |
| -4.13M | -1.71M | -997.00K | -1.56M | -1.59M | Financing Cash Flow |
| 40.95M | 1.70M | -921.00K | 4.94M | 1.89M |
Perma-Fix Technical Analysis
Negative
7.17
Price Trends
7.90
Negative
9.73
Negative
10.76
Negative
Market Momentum
-0.21
Negative
46.28
Neutral
78.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PESI, the sentiment is Negative. The current price of 7.17 is below the 20-day moving average (MA) of 7.25, below the 50-day MA of 7.90, and below the 200-day MA of 10.76, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 46.28 is Neutral, neither overbought nor oversold. The STOCH value of 78.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PESI.
Perma-Fix Risk Analysis
Perma-Fix disclosed 40 risk factors in its most recent earnings report. Perma-Fix reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Perma-Fix Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $89.17M | 5.65 | 24.75% | ― | 4.52% | 215.10% | |
63 Neutral | $4.29B | 11.05 | 5.73% | 232.30% | 4.75% | -5.69% | |
58 Neutral | $122.48M | 9.61 | 44.97% | ― | 5.75% | -15.87% | |
48 Neutral | $109.25M | ― | -58.16% | ― | -39.28% | -6578.79% | |
47 Neutral | $99.20M | ― | -283.03% | ― | 46.76% | 19.94% | |
41 Neutral | $135.45M | ― | -38.46% | ― | -34.12% | -3803.38% |
* Industrials Sector Average
Performance Comparison
PESI
Perma-Fix
7.17
-4.03
-35.98%
PPIH
Perma-Pipe International Holdings
11.60
4.30
58.90%
RCMT
Rcm Technologies
16.06
-3.10
-16.18%
TUSK
Mammoth Energy Services
2.57
-0.73
-22.12%
SKYX
SQL Technologies
0.97
0.04
4.30%
Perma-Fix Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -0.97% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were significant achievements and strategic advancements, such as progress in the DF Law program, PFAS technology, and improved financial stability, these were offset by substantial revenue declines, decreased gross profit, and ongoing challenges in the Services segment due to federal budget delays. The company is optimistic about a return to growth and profitability in 2025, yet current financial setbacks pose a challenge.Highlights
Improvement in Waste Treatment Backlog
Waste treatment backlog has strengthened, with expectations of a meaningful increase from Q4 levels, indicating positive momentum for 2025.
DF Law Program at Hanford Progress
The DF Law program at Hanford is on track with DOE reaffirming the legally binding milestone of August 1st for waste treatment activities to commence, marking a major milestone for the industry.
PFAS Destruction Technology Progress
Perma-Fix's PFAS destruction technology has met performance expectations at commercial scale, and a second-generation unit is being developed, expected to triple processing capacity by late Q3 2025.
Strong Executive Leadership
Appointment of Troy Echeman as Chief Operating Officer, bringing extensive experience in nuclear and environmental services, expected to enhance operational efficiency and growth strategy execution.
Solid Financial Position
Cash on the balance sheet increased to $29 million from $7.5 million at year-end 2023, primarily from equity raises, indicating improved financial stability.
Lowlights
Significant Revenue Decline
Total revenue from continuing operations for the fourth quarter was $14.7 million, a decrease of $8 million or 35.2% compared to last year's fourth quarter.
Reduced Gross Profit
Gross profit for the fourth quarter was $594,000 compared to $4.3 million in 2023, affected by lower revenue, higher labor, and regulatory expenses.
Net Loss and EBITDA Decrease
Net loss for the quarter was $3.5 million compared to last year's net income of $81,000, and EBITDA loss was $3 million compared to income of $434,000 last year.
Challenges in Services Segment
Services segment revenue dropped due to a lack of large projects, consistent with a 34.1% decline in annual revenue compared to 2023.
Impact of Federal Budget Delays
Federal budget delays continued to impact procurement cycles, posing challenges for project starts and long-term revenue stability.
Company Guidance
During Perma-Fix Environmental Services, Inc.'s fourth quarter and fiscal 2024 conference call, the company provided guidance indicating a challenging year due to delays in project starts and procurement cycles, affecting revenue. However, CEO Mark Duff emphasized a positive outlook for 2025, expecting growth and profitability driven by initiatives like the DF Law program at Hanford starting in August, with potential to support up to 8,000 cubic meters annually. The PermaFAST PFAS destruction technology is progressing, with a second-generation unit expected to process 2,000 gallons daily by late Q3. The company anticipates key contract wins, including DOE's West Valley project, contributing to a robust growth pipeline. Despite a 35.2% revenue decline in Q4 to $14.7 million, and a $20 million net loss for the year, Perma-Fix remains optimistic about its long-term strategy and market positioning.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.