Perma-Fix (PESI) AI Stock Analysis

• Market Cap: $184.33M
• Dividend Yield: N/A
• Average Volume (3M): 281.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -16.87%
• EPS Growth: -124.96%
• Country: US
• Employees: 293
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -0.14
• Shares Outstanding: 18,470,201
• 10 Day Avg. Volume: 134,712
• 30 Day Avg. Volume: 281,424
• 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: 0.95
• Enterprise Value/Revenue: 2.93
• Enterprise Value/Gross Profit: 43.07
• Enterprise Value/Ebitda: -18.47
• 1Y Price Target: $10.00
• Price Target Upside: -0.10% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: $10.00 ▼(-0.10% Downside)

Perma-Fix's overall stock score is primarily impacted by its financial challenges, including declining revenues and negative profit margins. Technical analysis suggests a lack of strong momentum, while valuation metrics are unattractive due to a negative P/E ratio. However, the earnings call provides a more optimistic outlook with potential revenue growth and significant contracts, slightly offsetting the negative aspects.

Positive Factors

Revenue Growth

The company's ability to achieve sequential and year-over-year revenue growth, particularly with a 37% increase in the Treatment segment, indicates strong market demand and effective business strategies, which are crucial for long-term financial health.

Significant Contracts

Securing a position on significant contracts like the Navy's RADMAC III IDIQ enhances revenue visibility and stability, providing a strong foundation for future growth and reinforcing the company's competitive position in the industry.

International Expansion

International expansion, evidenced by contracts like the EUR 50 million deal in Italy, diversifies revenue streams and reduces reliance on domestic markets, enhancing long-term growth prospects and resilience against local economic fluctuations.

Negative Factors

Declining Revenue

The significant decline in revenue reflects challenges in maintaining market share and operational efficiency, which could hinder the company's ability to invest in growth opportunities and sustain long-term profitability.

Negative Profit Margins

Sustained negative profit margins indicate operational inefficiencies and pricing pressures, which can erode shareholder value and limit the company's ability to reinvest in business development and innovation.

Cash Flow Issues

Negative free cash flow suggests difficulties in funding operations and growth initiatives internally, potentially leading to increased reliance on external financing, which could strain the balance sheet and impact financial flexibility.

Perma-Fix Business Overview & Revenue Model

Company Description

Perma-Fix Environmental Services, Inc., through its subsidiaries, operates as an environmental and technology know-how company in the United States. It operates in three segments: Treatment, Services, and Medical. The Treatment segment offers nuclear, low-level radioactive, mixed waste, hazardous and non-hazardous waste treatment, and processing and disposal services through treatment and storage facilities. This segment is also involved in the research and development activities to identify, develop, and implement waste processing techniques for problematic waste streams. The Services segment provides technical services, including professional radiological measurement and site survey of government and commercial installations; integrated occupational safety and health services; and consulting, engineering, project and waste management, environmental, decontamination and decommissioning (D&D) field, technical, on-site waste management services, and management personnel and services. This segment also offers nuclear services, including technology-based services comprising engineering, D&D, specialty, construction, logistics, transportation, processing, and disposal; offers remediation of nuclear licensed and federal facilities, as well as cleanup of nuclear legacy sites; and owns an equipment calibration and maintenance laboratory that services, maintains, calibrates, and sources health physics, industrial hygiene, and customized nuclear, environmental, and occupational safety and health instrumentation. The Medical segment is involved in the research and development of medical isotope production technology. The company provides its services to research institutions, commercial companies, public utilities, and governmental agencies through direct sales to customers or through intermediaries. Perma-Fix Environmental Services, Inc. was incorporated in 1990 and is based in Atlanta, Georgia.

How the Company Makes Money

Perma-Fix generates revenue through multiple key streams, primarily by providing waste management and environmental services to government agencies, nuclear facilities, and industrial clients. The company charges fees for its waste disposal and treatment services based on the volume and type of waste processed. Additionally, PESI benefits from long-term contracts with government entities and private sector clients, which provide a stable revenue base. Strategic partnerships with regulatory bodies and other companies in the environmental sector further enhance its market position and profitability. Factors such as increasing regulatory requirements for waste management and a growing emphasis on environmental sustainability contribute to PESI's earnings potential.

Perma-Fix Financial Statement Overview

Summary

Perma-Fix faces substantial financial challenges, with declining revenues, negative profit margins, and cash flow difficulties. While the balance sheet shows some stability through a manageable debt level and strong equity ratio, the company's profitability and cash generation remain weak. Addressing operational inefficiencies and improving revenue growth are critical for future financial health.

Income Statement

Perma-Fix's income statement reveals significant challenges with profitability and revenue growth. The TTM (Trailing-Twelve-Months) shows a gross profit margin of 2.07% and a negative net profit margin of -33.65%, indicating difficulties in maintaining profitability. Revenue has decreased from $89.74 million in 2023 to $59.42 million TTM, marking a substantial decline of approximately 33.8%. The EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The balance sheet of Perma-Fix shows a relatively stable equity position with a debt-to-equity ratio of 0.05 and an equity ratio of 63.75% TTM. However, the return on equity is negative at -33.77%, pointing to issues in generating returns for shareholders. The company's total assets have decreased slightly, but the stockholders' equity remains strong, indicating potential for recovery if profitability improves.

Cash Flow

Perma-Fix's cash flow statement highlights negative free cash flow, with a TTM operating cash flow of -$12.26 million and free cash flow of -$14.51 million. The free cash flow to net income ratio is negative, and the operating cash flow to net income ratio indicates cash flow issues relative to earnings. Financing activities have provided some relief, but the overall cash flow situation remains concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.02M	59.12M	89.73M	70.60M	72.19M	105.43M
Gross Profit	4.08M	2.00K	16.37M	9.61M	6.82M	15.89M
EBITDA	-9.52M	-12.83M	3.83M	-1.30M	-864.00K	4.95M
Net Income	-18.76M	-19.98M	485.00K	-3.82M	835.00K	2.86M
Balance Sheet
Total Assets	0.00	97.25M	78.75M	70.90M	77.30M	78.92M
Cash, Cash Equivalents and Short-Term Investments	0.00	28.98M	7.50M	1.87M	4.44M	7.92M
Total Debt	2.91M	4.86M	5.87M	3.51M	4.64M	10.26M
Total Liabilities	12.71M	34.86M	39.37M	33.37M	36.72M	46.47M
Stockholders Equity	56.83M	62.39M	39.38M	37.53M	40.58M	34.19M
Cash Flow
Free Cash Flow	-13.78M	-18.82M	4.43M	-1.58M	-8.41M	5.65M
Operating Cash Flow	-9.05M	-14.74M	6.15M	-553.00K	-6.84M	7.37M
Investing Cash Flow	-4.73M	-4.13M	-1.71M	-997.00K	-1.56M	-1.59M
Financing Cash Flow	22.83M	40.95M	1.70M	-921.00K	4.94M	1.89M

Perma-Fix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.01
• 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 PESI, the sentiment is Positive. The current price of 10.01 is above the 20-day moving average (MA) of 9.49, below the 50-day MA of 10.71, and above the 200-day MA of 9.81, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 59.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PESI.

Perma-Fix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLH	76 Outperform	$12.46B	32.58	14.93%	―	5.49%	-1.66%
MEG	70 Outperform	$1.01B	―	-7.61%	―	17.78%	2.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CWST	57 Neutral	$5.83B	507.13	0.85%	―	20.35%	-45.38%
PESI	52 Neutral	$184.33M	―	-34.16%	―	-16.87%	-124.96%
QRHC	46 Neutral	$30.86M	―	-46.57%	―	-5.20%	-275.34%