EarthRenew (ERTH) AI Stock Analysis

• Market Cap: $11.35M
• Dividend Yield: N/A
• Average Volume (3M): 37.38K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.23
• Revenue Growth: -47.01%
• EPS Growth: 95.62%
• Country: CA
• Employees: 19
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Agricultural Inputs
• EPS (TTM): N/A
• Shares Outstanding: 141,883,760
• 10 Day Avg. Volume: 40,444
• 30 Day Avg. Volume: 37,378
• PEG Ratio: <0.01
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -60.67
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: ―

EarthRenew's overall score reflects significant financial struggles, marked by declining revenues and profitability challenges. The technical indicators suggest a bearish trend, and a negative P/E ratio signals ongoing financial difficulties. Without earnings call data or recent corporate events to provide additional insights, the overall outlook remains cautious, necessitating strategic improvements to enhance financial health and stock performance.

EarthRenew Business Overview & Revenue Model

Company Description

EarthRenew Inc. engages in the production and sale of regenerative and organic fertilizer in North America. It operates in two segments, Fertilizer Production and Power Generation. The company also converts natural gas to electricity from an industrial-sized gas turbine and sells electricity to electrical grid and cryptocurrency miners. In addition, it is involved in the sale of agricultural machinery. The company sells it fertilizers to agricultural farmers. EarthRenew Inc. is headquartered in Toronto, Canada.

How the Company Makes Money

EarthRenew makes money through the sale of its organic fertilizers, which are marketed to farmers and agricultural businesses looking to improve crop yields and soil health sustainably. The company's revenue is primarily generated from these sales, complemented by strategic partnerships with agricultural distributors to expand market reach. Additionally, EarthRenew may engage in collaborations with research institutions to develop and refine its technology, potentially opening up new revenue streams through licensing or technology partnerships.

EarthRenew Financial Statement Overview

Summary

EarthRenew faces significant financial challenges with declining revenues, negative profitability, and cash flow constraints. While its balance sheet shows a relatively stable equity position, the ongoing net losses and negative cash flows highlight the need for strategic improvements to achieve financial stability and growth. The company should focus on improving operational efficiency and exploring new revenue streams to enhance its financial health.

Income Statement

EarthRenew has shown declining revenue with a negative growth trend over the past few years. The TTM period reflects a substantial revenue drop and negative gross profit, indicating challenges in covering production costs. The company also struggles with profitability, evident from the negative net profit margin and EBIT margin. While EBITDA is positive in the TTM, suggesting some operational efficiency, overall profitability remains a concern.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, suggesting manageable leverage levels. The equity ratio remains healthy, indicating a strong asset base supported by equity. However, the declining total assets over recent periods and a decrease in cash reserves may limit financial flexibility. The return on equity is negative due to the net loss, underscoring profitability challenges.

Cash Flow

Cash flow analysis shows negative free cash flow, but there is an improvement in operating cash flow compared to previous years. The free cash flow growth rate is negative, raising concerns over the company's ability to generate sufficient cash from operations. Financing activities have been the primary source of cash, which may not be sustainable long term.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
6.90M	13.92M	17.27M	12.30M	506.86K	182.70K
	Gross Profit
89.17K	1.35M	2.15M	3.30M	238.14K	-83.99K
	EBIT
-4.31M	-3.31M	-3.50M	-3.12M	-3.83M	-1.39M
	EBITDA
-2.96M	1.89M	-5.66M	-3.31M	-3.58M	-1.27M
	Net Income Common Stockholders
-4.27M	84.19K	-7.08M	-4.70M	-3.93M	-1.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.15M	1.04M	3.63M	1.27M	953.77K	734.58K
	Total Assets
5.90M	29.41M	38.77M	26.79M	5.64M	5.18M
	Total Debt
307.87K	3.90M	4.15M	3.65M	393.32K	419.28K
	Net Debt
-638.98K	2.87M	521.05K	2.38M	-560.45K	-14.93K
	Total Liabilities
1.18M	14.11M	23.86M	16.26M	954.61K	1.34M
	Stockholders Equity
4.72M	15.29M	14.92M	10.54M	4.68M	3.83M
Cash Flow		Free Cash Flow
-187.09K	-2.20M	-8.70M	-2.38M	-3.75M	-1.03M
	Operating Cash Flow
260.78K	-520.45K	-6.28M	-416.71K	-3.75M	-1.03M
	Investing Cash Flow
-314.01K	-1.21M	-2.32M	-3.85M	0.00	55.00K
	Financing Cash Flow
-864.47K	-862.35K	10.95M	4.59M	4.27M	524.72K

EarthRenew Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ERTH, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.09, and above the 200-day MA of 0.06, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.94 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ERTH.

EarthRenew Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$2.04B	-1.15	-21.37%	3.64%	2.88%	-30.57%
ERTH	40 Underperform	$11.35M	―	-32.32%	―	-47.01%	95.62%
BEE		C$1.02M	―		―	―	―
GROW		C$1.95M	―		―	―	―
NPK	47 Neutral	C$25.54M	―	-32.62%	―	-39.06%	-9.07%
KRN	43 Neutral	C$8.79M	―	-35.90%	―	―	-16.48%
MGROF		$32.01M	―	-201.16%	―	―	―

EarthRenew Corporate Events

Replenish Nutrients Secures Financing for Facility Upgrades and Growth

Replenish Nutrients has secured $1.15 million in debt financing to complete upgrades at its Beiseker granulation facility, enabling production of up to 25,000 metric tonnes of granulated fertilizer annually. The enhancements are set to align with the spring planting season, vital for revenue generation, and are expected to result in positive EBITDA and operating cash flow. The financing reflects confidence in Replenish’s regenerative fertilizer products and supports future projects, including new facilities, furthering its mission to expand in high-demand markets.