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EarthRenew (TSE:ERTH)
:ERTH

EarthRenew (ERTH) AI Stock Analysis

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EarthRenew

(OTC:ERTH)

Rating:40Underperform
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 (ERTH) vs. iShares MSCI Canada ETF (EWC)

EarthRenew Business Overview & Revenue Model

Company DescriptionEarthRenew (ERTH) is a company focused on sustainable agriculture and renewable energy solutions. It operates primarily in the agricultural technology sector, providing innovative products and services that aim to enhance soil health and increase crop yields. The company's core offerings include organic fertilizers produced through a patented thermal technology process that converts livestock waste into nutrient-rich soil amendments.
How the Company Makes MoneyEarthRenew 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
35
Negative
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
50
Neutral
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
45
Neutral
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
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
6.90M13.92M17.27M12.30M506.86K182.70K
Gross Profit
89.17K1.35M2.15M3.30M238.14K-83.99K
EBIT
-4.31M-3.31M-3.50M-3.12M-3.83M-1.39M
EBITDA
-2.96M1.89M-5.66M-3.31M-3.58M-1.27M
Net Income Common Stockholders
-4.27M84.19K-7.08M-4.70M-3.93M-1.37M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.15M1.04M3.63M1.27M953.77K734.58K
Total Assets
5.90M29.41M38.77M26.79M5.64M5.18M
Total Debt
307.87K3.90M4.15M3.65M393.32K419.28K
Net Debt
-638.98K2.87M521.05K2.38M-560.45K-14.93K
Total Liabilities
1.18M14.11M23.86M16.26M954.61K1.34M
Stockholders Equity
4.72M15.29M14.92M10.54M4.68M3.83M
Cash FlowFree 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-3.85M0.0055.00K
Financing Cash Flow
-864.47K-862.35K10.95M4.59M4.27M524.72K

EarthRenew Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.08
Price Trends
50DMA
0.09
Negative
100DMA
0.08
Positive
200DMA
0.06
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
41.94
Neutral
STOCH
33.33
Neutral
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 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ERTH.

EarthRenew Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$391.88M2.4722.02%37.66%782.26%
51
Neutral
$2.02B-1.14-21.36%3.64%2.88%-30.57%
TSNPK
46
Neutral
C$26.33M-32.62%-39.06%-9.07%
40
Underperform
$11.35M-32.32%-47.01%95.62%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ERTH
EarthRenew
0.08
0.03
60.00%
TSE:SOIL
Saturn Oil & Gas
1.99
-0.76
-27.64%
TSE:NPK
Verde Agritech
0.50
-0.47
-48.45%

EarthRenew Corporate Events

Replenish Nutrients Secures Financing for Facility Upgrades and Growth
Jan 16, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.