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Perma-Fix Environmental Services (PESI)
NASDAQ:PESI
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Perma-Fix (PESI) AI Stock Analysis

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PESI

Perma-Fix

(NASDAQ:PESI)

Rating:53Neutral
Price Target:
$12.00
▼(-2.04%Downside)
Perma-Fix's overall stock score is primarily impacted by its financial challenges, including declining revenues and negative profit margins. However, the stock's technical indicators suggest a bullish trend, which partially offsets the financial weaknesses. The earnings call highlights some positive operational developments, though ongoing financial difficulties remain a concern. Valuation metrics are unattractive due to consistent losses.
Positive Factors
Growth Opportunities
Perma-Fix is preparing for substantial growth ahead from multiple large opportunities, signaling a positive outlook for the company's expansion.
Revenue Growth
Revenue grew year-over-year for the first time in five quarters, with expectations of continued growth as waste receipts and backlog increase.
Negative Factors
Government Uncertainty
Increased uncertainty on the timing of waste procurements and services activity is noted due to Department of Government Efficiency initiatives and an upcoming government budget deadline.
Project Delays
Revenue trailed estimates due to continued delays of project starts in Services and lower volumes in waste receipts in Treatment.

Perma-Fix (PESI) vs. SPDR S&P 500 ETF (SPY)

Perma-Fix Business Overview & Revenue Model

Company DescriptionPerma-Fix Environmental Services, Inc., through its subsidiaries, operates as an environmental and technology know-how company in the United States. It operates in three segments: Treatment, Services, and Medical. The Treatment segment offers nuclear, low-level radioactive, mixed waste, hazardous and non-hazardous waste treatment, and processing and disposal services through treatment and storage facilities. This segment is also involved in the research and development activities to identify, develop, and implement waste processing techniques for problematic waste streams. The Services segment provides technical services, including professional radiological measurement and site survey of government and commercial installations; integrated occupational safety and health services; and consulting, engineering, project and waste management, environmental, decontamination and decommissioning (D&D) field, technical, on-site waste management services, and management personnel and services. This segment also offers nuclear services, including technology-based services comprising engineering, D&D, specialty, construction, logistics, transportation, processing, and disposal; offers remediation of nuclear licensed and federal facilities, as well as cleanup of nuclear legacy sites; and owns an equipment calibration and maintenance laboratory that services, maintains, calibrates, and sources health physics, industrial hygiene, and customized nuclear, environmental, and occupational safety and health instrumentation. The Medical segment is involved in the research and development of medical isotope production technology. The company provides its services to research institutions, commercial companies, public utilities, and governmental agencies through direct sales to customers or through intermediaries. Perma-Fix Environmental Services, Inc. was incorporated in 1990 and is based in Atlanta, Georgia.
How the Company Makes MoneyPerma-Fix generates revenue through a variety of waste management services, primarily focused on the treatment and disposal of hazardous and radioactive wastes. Key revenue streams include contracts with government entities such as the U.S. Department of Energy and the Department of Defense, as well as commercial clients in industries that produce or manage hazardous materials. The company also earns income from its environmental consulting services and remediation projects, leveraging its expertise in managing complex waste challenges. Significant partnerships with governmental and commercial clients, along with compliance with regulatory standards, play a crucial role in sustaining and growing the company's earnings.

Perma-Fix Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 38.42%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments, such as increased backlog, gross profit improvement, and advancements in the PFAS program, alongside challenges like delays in federal procurement and higher SG&A costs. While there are promising signs of growth and operational improvements, the consistent net loss and ongoing financial challenges balance the sentiment.
Q1-2025 Updates
Positive Updates
Increased Waste Treatment Backlog
The company's waste treatment backlog grew to more than $10 million by quarter end, up approximately 30% from 2024.
Improvement in Gross Profit
Gross profit for the quarter was $657,000 compared to a gross loss of $620,000 in Q1 of 2024, indicating a significant improvement.
PFAS Program Progress
The PFAS program received its first commercial shipments from the federal government and made upgrades to reduce costs and improve efficiencies. The Gen 2 unit is on track for Q4 deployment, expanding processing capacity by at least three times.
International Expansion
Improved international activity with $7 million worth of waste received from Canada, Mexico, and Germany over the past two months.
Positive Financial Indicators
Total revenue for the quarter increased slightly by 2.2% year-over-year, and EBITDA from continuing operations improved from a negative $4 million to a negative $3.3 million.
Negative Updates
Delays in Federal Procurement
Revenue in the Services segment was down slightly due to delays in federal procurement activity, particularly in early stage projects.
Higher SG&A Costs
SG&A costs for the quarter were $4 million, higher by $471,000 compared to the prior year, due to higher labor costs and legal expenses.
Net Loss Consistent with Previous Year
The net loss for the quarter was $3.6 million, consistent with the previous year's loss, indicating ongoing financial challenges.
Company Guidance
In the Perma-Fix Fiscal First Quarter 2025 Earnings Conference Call, Mark Duff, President and CEO, highlighted several key metrics and strategic initiatives. The company saw a modest year-over-year revenue increase despite challenges from delays in procurement and project activities. The Treatment segment's revenue grew modestly, contributing to a backlog exceeding $10 million, up by approximately 30% from 2024. Gross profit improved due to higher waste volumes and efficiency initiatives. In the Services segment, revenue decreased slightly, yet gross margins improved significantly. The PFAS program advanced, receiving its first commercial shipments and achieving cost reductions with new system upgrades. The Generation 2 unit is on track for Q4 deployment, expected to triple processing capacity. Internationally, Perma-Fix received around $7 million worth of waste from Canada, Mexico, and Germany. The company remains focused on maintaining flexibility in cost management while supporting large project opportunities, with an optimistic outlook for stronger performance in the latter half of 2025.

Perma-Fix Financial Statement Overview

Summary
Perma-Fix faces substantial financial challenges, with declining revenues, negative profit margins, and cash flow difficulties. While the balance sheet shows some stability through a manageable debt level and strong equity ratio, the company's profitability and cash generation remain weak. Addressing operational inefficiencies and improving revenue growth are critical for future financial health.
Income Statement
42
Neutral
Perma-Fix's income statement reveals significant challenges with profitability and revenue growth. The TTM (Trailing-Twelve-Months) shows a gross profit margin of 2.07% and a negative net profit margin of -33.65%, indicating difficulties in maintaining profitability. Revenue has decreased from $89.74 million in 2023 to $59.42 million TTM, marking a substantial decline of approximately 33.8%. The EBIT and EBITDA margins are also negative, reflecting operational challenges.
Balance Sheet
60
Neutral
The balance sheet of Perma-Fix shows a relatively stable equity position with a debt-to-equity ratio of 0.05 and an equity ratio of 63.75% TTM. However, the return on equity is negative at -33.77%, pointing to issues in generating returns for shareholders. The company's total assets have decreased slightly, but the stockholders' equity remains strong, indicating potential for recovery if profitability improves.
Cash Flow
45
Neutral
Perma-Fix's cash flow statement highlights negative free cash flow, with a TTM operating cash flow of -$12.26 million and free cash flow of -$14.51 million. The free cash flow to net income ratio is negative, and the operating cash flow to net income ratio indicates cash flow issues relative to earnings. Financing activities have provided some relief, but the overall cash flow situation remains concerning.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue59.12M89.73M70.60M72.19M105.43M
Gross Profit2.00K16.37M9.61M6.82M15.89M
EBITDA-12.83M3.83M-1.30M-864.00K4.95M
Net Income-19.98M485.00K-3.82M835.00K2.86M
Balance Sheet
Total Assets97.25M78.75M70.90M77.30M78.92M
Cash, Cash Equivalents and Short-Term Investments28.98M7.50M1.87M4.44M7.92M
Total Debt4.86M5.87M3.51M4.64M10.26M
Total Liabilities34.86M39.37M33.37M36.72M46.47M
Stockholders Equity62.39M39.38M37.53M40.58M34.19M
Cash Flow
Free Cash Flow-18.82M4.43M-1.58M-8.41M5.65M
Operating Cash Flow-14.74M6.15M-553.00K-6.84M7.37M
Investing Cash Flow-4.13M-1.71M-997.00K-1.56M-1.59M
Financing Cash Flow40.95M1.70M-921.00K4.94M1.89M

Perma-Fix Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.25
Price Trends
50DMA
10.65
Positive
100DMA
9.21
Positive
200DMA
10.55
Positive
Market Momentum
MACD
0.46
Negative
RSI
71.87
Negative
STOCH
80.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PESI, the sentiment is Positive. The current price of 12.25 is above the 20-day moving average (MA) of 11.31, above the 50-day MA of 10.65, and above the 200-day MA of 10.55, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 71.87 is Negative, neither overbought nor oversold. The STOCH value of 80.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$12.32B31.8516.02%8.52%4.51%
72
Outperform
$6.85B491.931.00%21.63%-30.27%
68
Neutral
$775.68M-14.32%10.92%-57.13%
58
Neutral
HK$14.94B4.62-2.78%5.07%3.80%-54.55%
53
Neutral
$225.58M-41.10%-28.62%-543.45%
46
Neutral
$43.43M-44.84%-0.91%-305.99%
$257.75M
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PESI
Perma-Fix
12.25
-0.15
-1.21%
CWST
Casella Waste
108.79
7.02
6.90%
CLH
Clean Harbors
230.93
8.56
3.85%
QRHC
Quest Resource
2.10
-6.59
-75.83%
MEG
Montrose Environmental Group
23.12
-7.90
-25.47%
AMBI
Ambipar Emergency Response
4.65
1.07
29.89%

Perma-Fix Corporate Events

Executive/Board ChangesShareholder Meetings
Perma-Fix Approves COO Employment Agreement
Neutral
Apr 21, 2025

On April 17, 2025, Perma-Fix Environmental Services, Inc. approved an employment agreement with COO Troy Eshleman, effective through April 20, 2026. The agreement includes a base salary of $320,000 with potential increases, participation in benefit plans, and performance-based compensation. It also outlines terms for termination, including compensation for various scenarios. Additionally, the company scheduled its Annual Meeting of Stockholders for July 24, 2025, with a record date of June 2, 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 08, 2025