Enwave Corp (ENW) AI Stock Analysis

• Market Cap: C$43.25M
• Dividend Yield: N/A
• Average Volume (3M): 54.10K
• Price to Earnings (P/E): 381.8
• Beta (1Y): 0.47
• Revenue Growth: 87.28%
• EPS Growth: 72.44%
• Country: CA
• Employees: 25
• Sector: Services
• Sector Strength: N/A
• Industry: Industrial - Machinery
• EPS (TTM): -0.01
• Shares Outstanding: 118,494,225
• 10 Day Avg. Volume: 43,709
• 30 Day Avg. Volume: 54,096
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.65
• Price Target Upside: 80.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 50 Neutral
• Price Target: C$0.50 ▲(38.89% Upside)

Enwave Corp's overall stock score is driven by financial performance challenges, including declining revenue and negative profit margins. While the earnings call provided some optimism with increased revenue and capital raising, technical analysis and valuation metrics remain weak. The stock's long-term potential is supported by strategic expansions and negotiations for large-scale machine sales.

Enwave Corp Business Overview & Revenue Model

Company Description

EnWave 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 Money

Enwave 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.24M	8.18M	11.36M	23.70M	26.48M	32.88M
Gross Profit	3.53M	2.66M	4.24M	6.29M	7.17M	8.77M
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 Assets	13.12M	13.15M	16.03M	25.85M	30.64M	40.66M
Cash, Cash Equivalents and Short-Term Investments	4.64M	4.76M	4.17M	6.20M	11.79M	14.71M
Total Debt	1.34M	1.57M	1.38M	2.43M	1.78M	2.31M
Total Liabilities	4.69M	3.73M	4.47M	8.22M	7.65M	12.31M
Stockholders Equity	8.44M	9.42M	11.56M	17.63M	22.99M	28.35M
Cash Flow
Free Cash Flow	1.24M	1.17M	-2.56M	-4.96M	-24.00K	-4.94M
Operating Cash Flow	1.26M	1.39M	-2.51M	-2.26M	2.04M	-4.13M
Investing Cash Flow	77.00K	-116.00K	1.36M	-2.52M	-1.82M	-491.00K
Financing Cash Flow	-283.00K	-692.00K	-900.00K	-939.00K	-2.93M	678.00K

Enwave Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.37, below the 50-day MA of 0.41, and above the 200-day MA of 0.32, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.44 is Neutral, neither overbought nor oversold. The STOCH value of 56.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ENW.

Enwave Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENW	50 Neutral	C$43.25M	381.82	-21.72%	―	87.28%	72.44%
DYA	44 Neutral	C$68.62M	-5.25	452.77%	―	15.28%	-24.76%
PYR	41 Neutral	C$43.13M	-3.95	192.72%	―	0.58%	45.10%
NXH	41 Neutral	C$10.31M	-0.83	174.36%	―	-57.69%	4.44%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Enwave Corp Corporate Events

EnWave to Announce Q3 2025 Financial Results and Host Investor Call

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.

EnWave Corp Announces $3 Million Private Placement to Boost Production Capacity

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.

EnWave Expands Partnership with Dairy Concepts Irl for Enhanced Dairy Snack Production

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.

EnWave Expands Partnership with MicroDried® and Boosts REV™ Capacity

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.

EnWave Expands Partnership with Procescir, Boosting Market Presence

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.

EnWave Corporation Reports Strong Q2 2025 Financial Results and Strategic Expansions

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.

EnWave Expands Pet Treat Market with Creations Foods License Amendment

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.

EnWave to Announce Q2 2025 Financial Results and Host Investor Call

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.