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Enwave Corp (TSE:ENW)
:ENW
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Enwave Corp (ENW) AI Stock Analysis

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TSE:ENW

Enwave Corp

(ENW)

Rating:49Neutral
Price Target:
C$0.50
▲(38.89% Upside)
Enwave Corp's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and negative profit margins. Technical analysis indicates bearish momentum, and valuation metrics are weak with a negative P/E ratio. The earnings call provided some optimism with revenue growth and capital raising, but operational challenges remain significant.

Enwave Corp (ENW) vs. iShares MSCI Canada ETF (EWC)

Enwave Corp Business Overview & Revenue Model

Company DescriptionEnWave Corporation designs, constructs, markets, licenses, installs, and sells vacuum-microwave machinery for the food, cannabis, and biomaterial dehydration industries in Canada and the United States. It offers radiant energy vacuum (REV) dehydration platforms, such as nutraREV and quantaREV to dehydrate fruits, vegetables, herbs, dairy products, ready-to-eat meals, instant baked goods, cannabis products, nutraceuticals, pharmaceuticals, and meats and seafood. The company also provides REV platforms for pharmaceutical industry, including powderREV; and freezeREV for the dehydration of biomaterial and pharmaceutical products. In addition, it manufactures and sells cheddar, gouda, bacon cheddar, parmesan garlic, black pepper, white cheddar, and pepper jack flavors. The company sells its products through various direct customer relationships, brokers, distributors, and retailers; its online store, mooncheese.com; and Amazon.com, Inc. EnWave Corporation was founded in 1999 and is headquartered in Delta, Canada.
How the Company Makes MoneyEnwave Corp makes money primarily through the licensing of its proprietary REV technology to food processors and pharmaceutical companies worldwide. The company generates revenue from upfront licensing fees, ongoing royalties based on the licensees' product sales, and equipment sales to support the REV technology. Additionally, Enwave enters strategic partnerships and collaborations with major industry players to expand its market reach and explore new applications for its technology, contributing to its earnings.

Enwave Corp Earnings Call Summary

Earnings Call Date:Aug 22, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Dec 11, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a cautiously optimistic outlook with notable achievements such as increased revenue, successful capital raising, and expansion with existing partners. However, challenges like decreased gross margins and an adjusted EBITDA loss highlight areas needing attention.
Q3-2025 Updates
Positive Updates
Increase in Revenue
Revenues for Q3 were $2.75 million, up 5% year-over-year, with consistent revenue quarter-to-quarter.
Successful Capital Raise
The company successfully closed a fully subscribed $3 million LIFE Offering, enabling the manufacture of two large-scale REV Machines for their inventory.
Positive Sales Pipeline
The company is negotiating with four counterparties for potential near-term large-scale REV Machine purchases and anticipates superior machine sale performance in fiscal year 2026.
Expansion with Existing Partners
MicroDried and Procescir expanded their production capacity, with MicroDried purchasing two 60-kilowatt machines and Procescir delivering a 120-kilowatt machine for immediate production.
Growth in Royalty Revenue
Third-party royalty revenue increased by 1% in Q3 2025 compared to the previous year, and by 11% for the nine months ended June 30.
Negative Updates
Decreased Gross Margin
Gross margin for Q3 2025 was 19% compared to 44% in the comparative period, primarily due to production sales mix and a bulk discount to MicroDried.
Adjusted EBITDA Loss
The company reported an adjusted EBITDA loss of $570,000 for Q3 2025, compared to an adjusted EBITDA of $85,000 for Q3 2024.
Termination of U.S. Cannabis Partner License
The termination of the license with a U.S. cannabis partner impacted royalty revenue, offset by growth from other partners.
Company Guidance
During the Q3 fiscal 2025 earnings call for EnWave Corporation, CEO Brent Charleton provided guidance indicating a solid performance in Q3 with revenues of $2.75 million, a 5% increase year-over-year. The company is optimistic about further improvements in Q4, driven by potential transactions on large-scale REV machine opportunities, including the fabrication of a 100-kilowatt nutraREV machine and a refurbished 120-kilowatt quantaREV unit. EnWave anticipates completing the commissioning of up to five 10-kilowatt machines before September 30 for their partner, MicroDried. Despite a slight decrease in gross margin due to bulk discounts, future quarters are expected to see margin recovery. The company reported a slight increase in third-party royalty revenue to $431,000, with a continued growth trajectory anticipated through fiscal year 2026. EnWave is actively negotiating with four counterparties for potential large-scale REV machine sales, while also focusing on expanding sales in market verticals such as fruit and vegetables, dairy, and pet food. The recent successful private placement of $3 million will support the manufacture of additional large-scale REV machines, enhancing the company's ability to deploy machinery and accelerate growth.

Enwave Corp Financial Statement Overview

Summary
Enwave Corp's financial performance is challenged by declining revenue and negative profit margins, despite a strong cash position and low leverage. The income statement shows a significant revenue drop and ongoing operational losses, while the balance sheet and cash flow analysis indicate moderate financial stability with some improvement in cash generation.
Income Statement
45
Neutral
Enwave Corp's income statement shows declining revenue and profitability challenges. The TTM (Trailing-Twelve-Months) revenue of $8.1 million represents a significant drop from previous annual figures, with a 28.7% decrease from the prior year. The company is experiencing negative profit margins, with a TTM net profit margin of -25.3% and a negative EBIT margin of -23.1%. These figures indicate ongoing operational losses, although there is a slight improvement in EBITDA margin over recent periods.
Balance Sheet
60
Neutral
The balance sheet reveals a moderate financial position with some strengths. The company's debt-to-equity ratio remains low at 0.23, reflecting prudent leverage. However, the equity ratio has decreased to 70.5%, down from previous years, indicating potential declines in asset management efficiency. Enwave also maintains a healthy cash position, which contributes to a negative net debt, providing some financial stability.
Cash Flow
50
Neutral
Cash flow analysis shows mixed results. The TTM free cash flow is positive at $155,000, recovering from previous negative figures, but overall cash generation is still weak given the ongoing operational losses. The operating cash flow to net income ratio is positive, suggesting some improvement in cash generation efficiency, yet the free cash flow growth rate is highly volatile, indicating inconsistent cash flow management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.24M8.18M11.36M23.70M26.48M32.88M
Gross Profit3.53M2.66M4.24M6.29M7.17M8.77M
EBITDA-444.00K-1.05M-334.00K-1.43M-2.32M-5.20M
Net Income-778.00K-2.40M-6.51M-6.93M-4.13M-4.44M
Balance Sheet
Total Assets13.12M13.15M16.03M25.85M30.64M40.66M
Cash, Cash Equivalents and Short-Term Investments4.64M4.76M4.17M6.20M11.79M14.71M
Total Debt1.34M1.57M1.38M2.43M1.78M2.31M
Total Liabilities4.69M3.73M4.47M8.22M7.65M12.31M
Stockholders Equity8.44M9.42M11.56M17.63M22.99M28.35M
Cash Flow
Free Cash Flow1.24M1.17M-2.56M-4.96M-24.00K-4.94M
Operating Cash Flow1.26M1.39M-2.51M-2.26M2.04M-4.13M
Investing Cash Flow77.00K-116.00K1.36M-2.52M-1.82M-491.00K
Financing Cash Flow-283.00K-692.00K-900.00K-939.00K-2.93M678.00K

Enwave Corp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.36
Price Trends
50DMA
0.42
Negative
100DMA
0.38
Negative
200DMA
0.30
Positive
Market Momentum
MACD
-0.02
Positive
RSI
34.48
Neutral
STOCH
11.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ENW, the sentiment is Negative. The current price of 0.36 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.42, and above the 200-day MA of 0.30, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 34.48 is Neutral, neither overbought nor oversold. The STOCH value of 11.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ENW.

Enwave Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
$13.56B12.8310.03%0.92%7.13%-12.93%
49
Neutral
C$42.07M381.82-21.72%87.28%72.44%
44
Neutral
C$68.62M-1898.77%15.28%-24.76%
44
Neutral
C$11.46M-525.98%-57.69%4.44%
41
Neutral
C$51.57M-5701.32%0.58%45.10%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ENW
Enwave Corp
0.36
0.15
71.43%
TSE:DYA
dynaCERT
0.14
-0.04
-22.22%
TSE:PYR
PyroGenesis Canada
0.28
-0.54
-65.85%
TSE:NXH
Next Hydrogen Solutions Inc
0.50
0.08
19.05%

Enwave Corp Corporate Events

Business Operations and StrategyFinancial Disclosures
EnWave to Announce Q3 2025 Financial Results and Host Investor Call
Neutral
Aug 15, 2025

EnWave Corporation announced it will release its third-quarter financial results for 2025 on August 21, followed by an investor conference call on August 22. The company’s leadership will discuss the financial outcomes and business outlook, which could impact its operational strategy and market positioning. This announcement is significant for stakeholders as it provides insights into EnWave’s performance and future prospects.

Private Placements and FinancingBusiness Operations and Strategy
EnWave Corp Announces $3 Million Private Placement to Boost Production Capacity
Positive
Aug 7, 2025

EnWave Corporation has announced a private placement offering of up to $3 million, led by Clarus Securities Inc., to fund the construction of two large-scale Radiant Energy Vacuum dehydration machines. This strategic investment aims to enhance EnWave’s production capabilities and meet growing demand, positioning the company to fulfill future orders more efficiently. The offering is expected to close by August 21, 2025, subject to necessary approvals, and highlights EnWave’s commitment to expanding its market presence and operational capacity.

Product-Related AnnouncementsBusiness Operations and Strategy
EnWave Expands Partnership with Dairy Concepts Irl for Enhanced Dairy Snack Production
Positive
Jul 30, 2025

EnWave Corporation announced the sale of two additional 10kW Radiant Energy Vacuum machines to Dairy Concepts Irl (DCI), marking the fifth and sixth units acquired by the Irish dairy snack innovator. This expansion supports DCI’s successful market presence in the UK, particularly with its innovative crunchy cheese snacks that have gained traction in major retailers like Marks and Spencer. The acquisition is expected to enhance DCI’s production capabilities and capitalize on new distribution opportunities, further solidifying its position in the European dairy snacks market.

Product-Related AnnouncementsBusiness Operations and Strategy
EnWave Expands Partnership with MicroDried® and Boosts REV™ Capacity
Positive
Jul 3, 2025

EnWave Corporation has expanded its collaboration with MicroDried® by signing a new royalty-bearing license agreement and selling three additional Radiant Energy Vacuum (REV™) machines. This agreement allows MicroDried® exclusive rights to use EnWave’s REV™ technology for producing mochi and Greek yogurt products in North America, along with other dairy applications. The expansion strengthens MicroDried®’s position as a key supplier to major global food brands, enhancing its product portfolio to include clean-label, nutrient-dense dairy and mochi ingredients. With the addition of these machines, MicroDried® now holds the highest REV™ manufacturing capacity globally, positioning itself for significant growth in the food industry.

Product-Related AnnouncementsBusiness Operations and Strategy
EnWave Expands Partnership with Procescir, Boosting Market Presence
Positive
Jun 11, 2025

EnWave Corporation has amended its royalty-bearing license agreement with Procescir S.A. de C.V. to include additional fruit and vegetable products, enhancing Procescir’s ability to capitalize on current and future commercial opportunities. This amendment is accompanied by the sale of a 120kW REV™ machine and auxiliary equipment, enabling Procescir to commence commercial production of fruit snacks for a major American brand. This strategic move is expected to bolster EnWave’s market presence and strengthen its position in the dehydration technology industry.

Business Operations and StrategyFinancial Disclosures
EnWave Corporation Reports Strong Q2 2025 Financial Results and Strategic Expansions
Positive
May 22, 2025

EnWave Corporation reported significant financial growth in its second quarter of 2025, with a substantial increase in revenue driven by machine sales and higher royalty revenues. The company’s gross margin improved significantly due to increased machine sales and royalties, while its adjusted EBITDA turned positive, indicating improved operational efficiency. EnWave also announced several strategic agreements and amendments, expanding its market reach and enhancing its product offerings, which are expected to strengthen its industry positioning and provide new opportunities for growth.

Product-Related AnnouncementsBusiness Operations and Strategy
EnWave Expands Pet Treat Market with Creations Foods License Amendment
Positive
May 20, 2025

EnWave Corporation has amended its license agreement with Creations Foods, allowing the latter to produce dried cheese snacks for pet treat applications in the United States using EnWave’s REV™ technology. This strategic move aims to capitalize on the growing pet food industry, with Creations Foods already having several confirmed pet treat customers. EnWave is also actively seeking new partners in the pet treat and food industry to expand the use of its technology, as demonstrated by its recent participation in the Pet Food Forum in Kansas City.

Business Operations and StrategyFinancial Disclosures
EnWave to Announce Q2 2025 Financial Results and Host Investor Call
Neutral
May 15, 2025

EnWave Corporation announced it will release its second-quarter financial results for 2025 on May 21, followed by an investor conference call on May 22. The announcement highlights EnWave’s continued focus on enhancing its market position through its innovative dehydration technology, which offers significant advantages over traditional drying methods. This release is important for stakeholders as it reflects the company’s ongoing efforts to expand its market reach and improve operational efficiency.

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: Sep 06, 2025