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Anaergia, Inc. (TSE:ANRG)
TSX:ANRG
Canadian Market

Anaergia (ANRG) AI Stock Analysis

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Anaergia

(TSX:ANRG)

Rating:48Neutral
Price Target:
C$1.50
▲(12.78%Upside)
Anaergia's overall stock score is primarily impacted by significant financial challenges, including declining revenue and high leverage. However, positive corporate events and some technical momentum provide a counterbalance, suggesting potential for future improvement if financial stability is achieved and strategic projects succeed.

Anaergia (ANRG) vs. iShares MSCI Canada ETF (EWC)

Anaergia Business Overview & Revenue Model

Company DescriptionAnaergia Inc., together with its subsidiaries, provides solutions for the generation of renewable energy and conversion of waste to resources. The company operates through three segments: Capital Sales; Services; and Build, Own, and Operate Projects. It offers waste processing solutions that capture and process organic waste contained within mixed municipal solid wastes; anaerobic digestion solution for the production of clean energy, fertilizers, and recycled water from waste streams; membrane-based system to upgrade biogas and create pipeline; liquid treatment for water re-use and nutrient recovery; and residue treatment solutions. The company offers wastewater resource recovery, municipal solid waste, and agri-food solutions. Anaergia Inc. was founded in 2007 and is headquartered in Burlington, Canada.
How the Company Makes MoneyAnaergia, Inc. generates revenue primarily through the sale of renewable energy solutions and services. The company's key revenue streams include the sale of biogas and electricity generated from the conversion of organic waste, as well as fees for waste treatment and resource recovery services. Anaergia partners with municipalities, agricultural operations, and industrial clients to implement its technologies, which can include long-term service agreements, build-own-operate models, and technology licensing. The company's earnings are also supported by government incentives for renewable energy projects and environmental sustainability initiatives.

Anaergia Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q3-2024)
|
% Change Since: 16.67%|
Next Earnings Date:Aug 08, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive strategic direction and financial improvements under new leadership. While there is a decline in revenue due to project timing, the company's operational and financial adjustments are yielding positive results. The strategic investments, improved cash position, and ongoing projects suggest a strong foundation for future growth.
Q3-2024 Updates
Positive Updates
Leadership and Strategic Shift
Anaergia introduced new leadership with Assaf Onn as CEO, Greg Wolf as CFO, and Scott Hodgdon as General Counsel. The company is shifting towards a refined sales and project development approach with a focus on a capital-light model.
Improved Financial Performance
Adjusted EBITDA improved by 42% from CAD 11.1 million to CAD 6.4 million this quarter. Loss from operations was substantially reduced year-over-year, and the net loss decreased significantly.
Strong Cash Position
Cash position increased to CAD 40.2 million, primarily due to the strategic investment from Marny, strengthening Anaergia's financial base.
Strategic Investments and Governance Improvements
Closed the Marny investment and completed a share restructuring simplification, converting dual-class shares into a single class to improve governance and align shareholder interests.
Operational Highlights and New Projects
Notable projects include the Riverside water quality control plant upgrade for CAD 13.3 million and the Jeju Island, South Korea project under a letter of intent for CAD 25 million. Anaergia also expanded its presence in Japan and Africa.
Negative Updates
Revenue Decline
Q3 2024 revenues decreased from CAD 34 million in Q3 2023 to CAD 29 million in Q3 2024 due to project completion and delays in new project signings.
Challenges with SB 1383 Adoption
Sluggish rollout of California's Senate Bill 1383, impacting the adoption of Anaergia's solutions in the state.
Company Guidance
During Anaergia's Q3 2024 earnings call, Assaf Onn, the CEO, highlighted several key metrics demonstrating the company's strategic shift towards a capital-light model. Adjusted EBITDA showed a significant improvement of 42%, increasing from CAD 11.1 million to CAD 6.4 million, reflecting operational efficiencies. The company's net loss decreased notably, with a cash position bolstered to CAD 40.2 million due to strategic investments, such as the Marny investment, which also improved the company's financial base. Revenue for Q3 2024 was CAD 29 million, down from CAD 34 million in Q3 2023, primarily due to the completion of Italian Capital Sales projects and delays in new project signings. However, net SG&A expenses decreased by 19.2% compared to the previous year. The company is focusing on sustainable growth, with new projects in California, South Korea, and the U.S., supported by favorable market conditions driven by incentives like the U.S. Inflation Reduction Act and Europe's RePower EU program.

Anaergia Financial Statement Overview

Summary
Anaergia, Inc. is facing significant financial challenges with declining revenue and negative profit margins. The balance sheet shows negative equity and high leverage, indicating financial instability. Cash flows are under strain with reliance on external financing.
Income Statement
30
Negative
The income statement shows declining revenue and profitability with total revenue decreasing from $162.9M in 2022 to $111.6M in the TTM. The gross profit margin for the TTM is approximately 21.9%, which is relatively weak. The net profit margin is negative due to significant net losses, indicating poor profitability. EBIT and EBITDA margins are also negative, reflecting operational challenges.
Balance Sheet
20
Very Negative
The balance sheet indicates financial stress with negative stockholders' equity of $57.6M in the TTM, a concerning indicator of financial instability. The debt-to-equity ratio is not calculable due to negative equity, while total liabilities exceed total assets, indicating high leverage. Furthermore, the equity ratio is negative, pointing to high financial risk.
Cash Flow
25
Negative
The cash flow statement reveals negative free cash flow growth, with free cash flow decreasing from -$130.9M in 2023 to -$42.1M in the TTM. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. Although financing cash flow remains positive, it is driven by external financing rather than operational efficiency.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue111.65M147.22M162.85M153.58M128.04M
Gross Profit25.63M14.60M28.60M31.63M28.55M
EBITDA-38.37M-185.49M-53.59M-11.38M-4.53M
Net Income-42.89M-182.60M-74.71M-9.38M-16.82M
Balance Sheet
Total Assets233.33M278.67M935.11M703.91M452.23M
Cash, Cash Equivalents and Short-Term Investments30.22M22.11M55.38M79.32M41.16M
Total Debt71.71M70.89M377.65M221.50M168.63M
Total Liabilities180.12M205.08M592.97M367.30M326.46M
Stockholders Equity-57.65M-55.38M208.84M218.02M43.27M
Cash Flow
Free Cash Flow-41.01M-130.87M-152.97M-127.54M-100.57M
Operating Cash Flow-30.23M-66.76M-30.56M-38.95M26.63M
Investing Cash Flow10.90M-27.80M-192.50M-149.62M-154.48M
Financing Cash Flow32.52M64.76M198.13M229.91M153.87M

Anaergia Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.33
Price Trends
50DMA
1.28
Positive
100DMA
1.13
Positive
200DMA
1.04
Positive
Market Momentum
MACD
0.01
Positive
RSI
49.39
Neutral
STOCH
34.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ANRG, the sentiment is Positive. The current price of 1.33 is below the 20-day moving average (MA) of 1.38, above the 50-day MA of 1.28, and above the 200-day MA of 1.04, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 34.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ANRG.

Anaergia Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥252.71B13.078.49%3.07%6.30%13.10%
48
Neutral
C$225.96M105.95%-17.26%91.10%
WCWCN
$46.44B74.407.96%0.70%
TSBLM
47
Neutral
C$49.06M1,885.710.16%49.38%-93.75%
TSBQE
C$69.90M9.8738.06%
GFGFL
$17.60B10.03-10.02%0.13%
TSVTX
C$26.89M-11.65%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ANRG
Anaergia
1.34
1.09
436.00%
WCN
Waste Connections
182.21
5.26
2.97%
TSE:BLM
BluMetric Environmental
1.32
0.92
230.00%
TSE:BQE
BQE Water
54.11
-3.49
-6.06%
GFL
GFL Environmental
47.98
9.32
24.11%
TSE:VTX
Vertex Resource Group Ltd.
0.26
-0.03
-10.34%

Anaergia Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Anaergia to Supply Equipment for Spanish Biomethane Facility Upgrade
Positive
Jul 7, 2025

Anaergia Inc., through its subsidiary Anaergia S.r.l., has signed a contract with PreZero International to supply equipment for upgrading an anaerobic digestion facility in Bizkaia, Spain. The facility will process up to 50,000 tons of source-separated organics annually, converting them into biomethane using Anaergia’s proprietary technologies. This project marks Anaergia’s first plant in Spain and is expected to generate C$7.6 million in revenue. The upgrade will enhance the facility’s efficiency and sustainability, reinforcing Anaergia’s position as a leader in the RNG industry and contributing to environmental protection and sustainable value creation.

The most recent analyst rating on (TSE:ANRG) stock is a Hold with a C$1.30 price target. To see the full list of analyst forecasts on Anaergia stock, see the TSE:ANRG Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Anaergia to Supply Equipment for Italy’s First Co-Digestion Biomethane System
Positive
Jul 2, 2025

Anaergia Inc., through its subsidiary Anaergia S.r.l., has entered into a binding agreement with RDR S.p.A. to supply capital equipment for a co-digestion system at the ASA Livorno wastewater treatment plant in Livorno, Italy. This project, which is the first of its kind in Italy, will combine source-separated organics and wastewater sludge to produce renewable biomethane, with construction expected to be completed by December 2026. The initiative represents a significant step for Anaergia in leveraging its global expertise to turn waste streams into valuable energy resources, thereby advancing sustainable energy solutions.

The most recent analyst rating on (TSE:ANRG) stock is a Hold with a C$1.30 price target. To see the full list of analyst forecasts on Anaergia stock, see the TSE:ANRG Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Anaergia Announces Shareholder Meeting Results and Director Elections
Positive
Jun 17, 2025

Anaergia Inc. announced the results of its annual general meeting of shareholders, where all nominated directors were elected and Deloitte LLP was appointed as the auditor. The meeting saw participation from shareholders holding 76.73% of the company’s common shares, reinforcing Anaergia’s stable governance and commitment to its strategic goals in the renewable energy sector.

The most recent analyst rating on (TSE:ANRG) stock is a Hold with a C$1.30 price target. To see the full list of analyst forecasts on Anaergia stock, see the TSE:ANRG Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Anaergia Expands Biomethane Production in Italy with Techbau Partnership
Positive
Jun 11, 2025

Anaergia Inc., through its subsidiary Anaergia S.r.l., has expanded its collaboration with Techbau S.p.A. to build two additional biomethane production plants in Italy, increasing the total to seven facilities. This expansion supports Italy’s sustainable energy goals and is expected to generate over C$36 million in revenue for Anaergia, highlighting the strong partnership and trust between the two companies.

The most recent analyst rating on (TSE:ANRG) stock is a Hold with a C$1.30 price target. To see the full list of analyst forecasts on Anaergia stock, see the TSE:ANRG Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Anaergia to Build Biogas Facility in South Korea
Positive
Jun 9, 2025

Anaergia Singapore Pte. Ltd., a subsidiary of Anaergia Inc., has signed a conditional contract with New Jeju Bio Co. Ltd. to design and build a biogas facility on Jeju Island, South Korea. This project, valued at approximately C$40 million, marks Anaergia’s first venture in South Korea and is expected to be completed by mid- to late-2027. The facility will convert organic waste into renewable energy, significantly reducing greenhouse gas emissions and promoting waste recycling on Jeju Island. This development enhances Anaergia’s market presence in South Korea and demonstrates its capability to deliver integrated waste-to-energy solutions.

The most recent analyst rating on (TSE:ANRG) stock is a Hold with a C$1.30 price target. To see the full list of analyst forecasts on Anaergia stock, see the TSE:ANRG Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Anaergia and Capwatt Partner to Launch Metanext Biogas Facility in Italy
Positive
May 20, 2025

Anaergia Inc., through its subsidiary Anaergia S.r.l., has signed a C$7.3 million contract with Capwatt Biomethane Unipessoal, Lda to design and construct the Metanext anaerobic digestion facility in Italy. This project is the first of nine planned facilities aimed at enhancing Europe’s green energy infrastructure and accelerating biomethane production, with a total expected revenue of over C$60 million. The Metanext facility will produce 7.6 million cubic meters of biomethane annually, marking a significant step in sustainable energy production and the energy transition in Europe.

The most recent analyst rating on (TSE:ANRG) stock is a Hold with a C$1.30 price target. To see the full list of analyst forecasts on Anaergia stock, see the TSE:ANRG Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Anaergia Inc. Achieves Record Revenue Backlog Amid Strategic Progress
Positive
May 14, 2025

Anaergia Inc. reported a record revenue backlog of $200 million for the first quarter of 2025, marking a 94.1% increase from the previous quarter, driven by capital sales in Italy and North America. Despite a slight decrease in revenue and gross profit, the company improved its adjusted EBITDA loss by 34.5% compared to the previous year, reflecting strategic actions to strengthen its financial foundation and investor confidence.

The most recent analyst rating on (TSE:ANRG) stock is a Hold with a C$1.30 price target. To see the full list of analyst forecasts on Anaergia stock, see the TSE:ANRG Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Anaergia Expands Role in East County Water Purification Project
Positive
Apr 28, 2025

Anaergia Inc. has expanded its project scope with the East County Advanced Water Purification Joint Powers Authority in East San Diego County, California. The change order will see Anaergia providing additional engineering services and equipment, increasing its revenue by C$8.6 million. This development is part of a larger water purification initiative aimed at creating a sustainable and drought-proof drinking water supply for the region. The project will utilize Anaergia’s technology to transform waste into energy, thereby reducing operating costs and benefiting local ratepayers.

Business Operations and Strategy
Anaergia and Capwatt Partner for Nine New Biogas Plants in Europe
Positive
Apr 21, 2025

Anaergia Inc. has signed a binding Letter of Intent with Capwatt to design and build nine biomethane facilities in Portugal, Spain, and Italy, expected to generate over C$60 million in revenue. This agreement strengthens Anaergia’s position in the renewable energy sector, enhancing Europe’s green energy infrastructure and accelerating biomethane production, while showcasing Capwatt’s commitment to sustainable energy.

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