Perma-Fix (PESI) AI Stock Analysis

• Market Cap: $225.58M
• Dividend Yield: N/A
• Average Volume (3M): 119.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -28.62%
• EPS Growth: -543.45%
• Country: US
• Employees: 293
• Sector: Industrials
• Sector Strength: 94
• Industry: Waste Management
• EPS (TTM): -0.19
• Shares Outstanding: 18,444,572
• 10 Day Avg. Volume: 125,375
• 30 Day Avg. Volume: 119,465
• PEG Ratio: -1.98
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.38
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 151.32
• Enterprise Value/Ebitda: -4.57
• 1Y Price Target: $10.00
• Price Target Upside: -18.37% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• 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 Business Overview & Revenue Model

Company Description

Perma-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 Money

Perma-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 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

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

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

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.

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
EBITDA	-12.83M	3.83M	-1.30M	-864.00K	4.95M
Net Income	-19.98M	485.00K	-3.82M	835.00K	2.86M
Balance Sheet
Total Assets	97.25M	78.75M	70.90M	77.30M	78.92M
Cash, Cash Equivalents and Short-Term Investments	28.98M	7.50M	1.87M	4.44M	7.92M
Total Debt	4.86M	5.87M	3.51M	4.64M	10.26M
Total Liabilities	34.86M	39.37M	33.37M	36.72M	46.47M
Stockholders Equity	62.39M	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

• Technical Analysis Sentiment: Positive
• Last Price: 12.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLH	78 Outperform	$12.32B	31.85	16.02%	―	8.52%	4.51%
CWST	72 Outperform	$6.85B	491.93	1.00%	―	21.63%	-30.27%
MEG	68 Neutral	$775.68M	―	-14.32%	―	10.92%	-57.13%
Sector *	58 Neutral	HK$14.94B	4.62	-2.78%	5.07%	3.80%	-54.55%
PESI	53 Neutral	$225.58M	―	-41.10%	―	-28.62%	-543.45%
QRHC	46 Neutral	$43.43M	―	-44.84%	―	-0.91%	-305.99%
AMBI	―	$257.75M	―		―	―	―

Perma-Fix Corporate Events

Perma-Fix Approves COO Employment Agreement

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.