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Enwave Corp (TSE:ENW)
:ENW

Enwave Corp (ENW) AI Stock Analysis

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Enwave Corp

(ENW)

Rating:51Neutral
Price Target:
C$0.50
▲(25.00%Upside)
Enwave Corp's overall stock score is primarily impacted by its financial challenges, including declining revenue and profitability issues. While technical analysis suggests a possible positive trend, the valuation indicates significant overvaluation. Corporate events and earnings call insights are positive but not factored into the score.

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

Enwave Corp Business Overview & Revenue Model

Company DescriptionEnwave Corp (ENW) is a technology company that specializes in the development and commercialization of innovative dehydration technologies for the food and pharmaceutical industries. The company's core product, Radiant Energy Vacuum (REV) technology, is designed to deliver superior drying solutions that preserve the quality and nutritional value of products. Enwave's solutions cater to a variety of sectors, including food processing, nutraceuticals, and pharmaceuticals, providing efficient, sustainable, and scalable drying solutions.
How the Company Makes MoneyEnwave Corp makes money primarily through the sale and licensing of its proprietary REV technology. The company generates revenue by selling REV machinery to food and pharmaceutical manufacturers, enabling them to produce high-quality dehydrated products. Additionally, Enwave engages in licensing agreements, granting partners the rights to use its technology in exchange for royalties. These partnerships are significant contributors to the company's earnings, as they provide a recurring revenue stream. Enwave also collaborates with industry leaders to co-develop new products, further bolstering its market presence and financial performance.

Enwave Corp Earnings Call Summary

Earnings Call Date:May 22, 2025
(Q2-2025)
|
% Change Since: 25.00%|
Next Earnings Date:Aug 22, 2025
Earnings Call Sentiment Positive
The earnings call revealed significant revenue growth, improved gross margins, and positive adjusted EBITDA, highlighting a successful quarter. However, the dependency on continuous machine sales and the absence of exclusivity royalties in Q2 are notable challenges.
Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Revenues for Q2 were $3.7 million compared to $0.7 million in Q2 2024, an increase of $3 million or 456%.
Increased Gross Margin
Gross margin for Q2 2025 was 33% compared to negative 25% in the comparative period.
Growth in Third-Party Royalties
Third-party royalties grew to $474,000, up 14% from the prior quarter, marking the largest base royalties for any quarter historically.
Positive Adjusted EBITDA
Reported adjusted EBITDA of $112,000 for Q2 2025, compared to an adjusted EBITDA loss of $1.3 million for Q2 2024, an improvement of $1.4 million.
REV Machine Sales and Partnerships
Sold large scale REV machines to MicroDried and Procescir and signed various agreements including with Solve Solutions of Brazil and Bio Technique of the U.S.
Successful Tax Credit Receipt
Recognized an 836,000 USD tax refund for NutraDried during the quarter, contributing to net income of $764,000.
Negative Updates
Dependency on Machine Sales
EnWave needs to sell and deliver four large scale machines a year to breakeven, highlighting dependency on continuous machine sales.
Exclusivity Royalties Not Received in Q2
No exclusivity-related royalties were paid for Q2, which are typically received in other quarters.
Company Guidance
During the Q2 2025 earnings call, EnWave Corporation reported significant financial metrics, highlighting a marked improvement compared to the previous year. Revenue for the quarter was $3.7 million, representing a substantial 456% increase from Q2 2024, driven by a large-scale machine sale and the commissioning of two small-scale machines. The company achieved a net income of $764,000, largely due to an employee retention tax credit, and reported an adjusted EBITDA of $112,000, a notable improvement from the previous year's loss. Gross margins were strong at 33%, and third-party royalties grew by 14% to $474,000, the highest for any quarter historically. EnWave's strategy focuses on selling and delivering at least four large-scale Radiant Energy Vacuum (REV) machines annually to break even, with each additional sale and increased royalties contributing to profitability. The company also reported a robust sales pipeline, with plans to meet its machine sales targets and expand its presence in international markets.

Enwave Corp Financial Statement Overview

Summary
Enwave Corp's financial statements indicate significant revenue and profitability challenges, with a declining revenue trend and negative profit margins. The company maintains a strong cash position and low leverage, partially offsetting these issues. Mixed cash flow results show some recovery, but operational inefficiencies remain a concern.
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.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue8.10M8.18M11.36M23.70M26.48M32.88M
Gross Profit2.77M2.66M4.24M6.29M7.17M8.77M
EBITDA-780.00K-1.05M-334.00K-1.43M-2.32M-5.20M
Net Income-2.05M-2.40M-6.51M-6.93M-4.13M-4.44M
Balance Sheet
Total Assets12.24M13.15M16.03M25.85M30.64M40.66M
Cash, Cash Equivalents and Short-Term Investments3.99M4.76M4.17M6.20M11.79M14.71M
Total Debt1.95M1.57M1.38M2.43M1.78M2.31M
Total Liabilities3.61M3.73M4.47M8.22M7.65M12.31M
Stockholders Equity8.63M9.42M11.56M17.63M22.99M28.35M
Cash Flow
Free Cash Flow155.00K1.17M-2.56M-4.96M-24.00K-4.94M
Operating Cash Flow203.00K1.39M-2.51M-2.26M2.04M-4.13M
Investing Cash Flow70.00K-116.00K1.36M-2.52M-1.82M-491.00K
Financing Cash Flow-276.00K-692.00K-900.00K-939.00K-2.93M678.00K

Enwave Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.40
Price Trends
50DMA
0.35
Positive
100DMA
0.30
Positive
200DMA
0.27
Positive
Market Momentum
MACD
<0.01
Positive
RSI
57.04
Neutral
STOCH
59.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ENW, the sentiment is Positive. The current price of 0.4 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.35, and above the 200-day MA of 0.27, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.04 is Neutral, neither overbought nor oversold. The STOCH value of 59.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ENW.

Enwave Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$16.52B17.144.47%3.56%4.76%6.13%
TSENW
51
Neutral
C$44.44M363.64-10.19%89.54%
TSPYR
49
Neutral
C$88.68M-5701.32%14.45%76.75%
TSDYA
47
Neutral
C$64.19M-1898.77%408.78%-20.74%
TSNXH
46
Neutral
C$13.06M-525.98%-24.60%-11.26%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ENW
Enwave Corp
0.40
0.17
73.91%
TSE:PYR
PyroGenesis Canada
0.48
-0.37
-43.53%
TSE:DYA
dynaCERT
0.14
-0.06
-30.00%
TSE:NXH
Next Hydrogen Solutions Inc
0.57
<0.01
1.79%

Enwave Corp Corporate Events

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.

Product-Related AnnouncementsBusiness Operations and Strategy
EnWave Secures Key Payment and Agreement with Mexican Agro-Industrial Leader
Positive
Apr 29, 2025

EnWave Corporation has received a second progress payment from Procescir S.A. de C.V. for a 120kW Radiant Energy Vacuum machine, which will be used for commercial production of fruit and vegetable products in Mexico. This development includes a two-year toll drying agreement with a leading American healthy snack company, which is expected to significantly enhance EnWave’s royalty portfolio. The company is also preparing to build an additional large-scale REV™ machine to meet future demand, indicating strong growth prospects and reinforcing its position in the drying technology market.

Product-Related AnnouncementsBusiness Operations and Strategy
EnWave Expands Partnership with MicroDried to Boost Production Capacity
Positive
Apr 22, 2025

EnWave Corporation has signed an Equipment Purchase Agreement and License Amendment with MicroDried®, a leading U.S.-based producer of premium fruit and vegetable ingredients. The agreement involves the acquisition of a 60kW Radiant Energy Vacuum machine to enhance MicroDried’s production capacity, with an option for an additional machine. The amendment grants MicroDried exclusive rights to use EnWave’s technology for apple ingredient production in specific U.S. states, strengthening its position in the fruit processing industry. This move is expected to support MicroDried’s growth and meet increasing demand for its clean-label ingredients.

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 04, 2025