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Anaergia, Inc. (TSE:ANRG)
TSX:ANRG
Canadian Market

Anaergia (ANRG) AI Stock Analysis

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Anaergia

(TSX:ANRG)

49Neutral
Anaergia's stock score is heavily impacted by financial instability, marked by declining revenue and negative equity. While technical analysis provides a neutral to slightly positive outlook, valuation concerns persist due to a lack of profitability. However, the company's strategic partnerships and project expansions offer potential for recovery, although substantial risks remain.

Anaergia (ANRG) vs. S&P 500 (SPY)

Anaergia Business Overview & Revenue Model

Company DescriptionAnaergia, Inc. (ANRG) is a global leader in the renewable energy sector, focusing on the conversion of waste into renewable energy and other useful byproducts. The company offers integrated solutions for waste management, including anaerobic digestion, wastewater treatment, and resource recovery. Anaergia’s core products and services are aimed at transforming organic waste into valuable resources such as biogas, fertilizer, and clean water, thereby contributing to sustainability and energy independence.
How the Company Makes MoneyAnaergia, Inc. generates revenue primarily through the sale of renewable energy solutions and services. The company's key revenue streams include the sale of biogas and electricity generated from the conversion of organic waste, as well as fees for waste treatment and resource recovery services. Anaergia partners with municipalities, agricultural operations, and industrial clients to implement its technologies, which can include long-term service agreements, build-own-operate models, and technology licensing. The company's earnings are also supported by government incentives for renewable energy projects and environmental sustainability initiatives.

Anaergia Financial Statement Overview

Summary
Anaergia, Inc. is encountering significant financial challenges. The income statement reflects declining revenue and profitability, with negative net profit and operational margins. The balance sheet shows financial instability with negative equity and high leverage, posing substantial financial risk. Cash flows are strained, relying heavily on external financing.
Income Statement
30
Negative
The income statement shows declining revenue and profitability with total revenue decreasing from $162.9M in 2022 to $111.6M in the TTM. The gross profit margin for the TTM is approximately 21.9%, which is relatively weak. The net profit margin is negative due to significant net losses, indicating poor profitability. EBIT and EBITDA margins are also negative, reflecting operational challenges.
Balance Sheet
20
Very Negative
The balance sheet indicates financial stress with negative stockholders' equity of $57.6M in the TTM, a concerning indicator of financial instability. The debt-to-equity ratio is not calculable due to negative equity, while total liabilities exceed total assets, indicating high leverage. Furthermore, the equity ratio is negative, pointing to high financial risk.
Cash Flow
25
Negative
The cash flow statement reveals negative free cash flow growth, with free cash flow decreasing from -$130.9M in 2023 to -$42.1M in the TTM. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. Although financing cash flow remains positive, it is driven by external financing rather than operational efficiency.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
111.65M147.22M162.85M153.58M128.04M
Gross Profit
25.63M14.60M28.60M31.63M28.55M
EBIT
-40.04M-85.80M-36.74M-9.49M-4.42M
EBITDA
-38.37M-185.49M-53.59M-11.38M-4.53M
Net Income Common Stockholders
-42.89M-182.60M-74.71M-9.38M-16.82M
Balance SheetCash, Cash Equivalents and Short-Term Investments
30.22M22.11M55.38M79.32M41.16M
Total Assets
233.33M278.67M935.11M703.91M452.23M
Total Debt
71.71M70.89M377.65M221.50M168.63M
Net Debt
41.49M48.77M322.27M142.18M127.47M
Total Liabilities
180.12M205.08M592.97M367.30M326.46M
Stockholders Equity
-57.65M-55.38M208.84M218.02M43.27M
Cash FlowFree Cash Flow
-41.01M-130.87M-152.97M-127.54M-100.57M
Operating Cash Flow
-30.23M-66.76M-30.56M-38.95M26.63M
Investing Cash Flow
10.90M-27.80M-192.50M-149.62M-154.48M
Financing Cash Flow
32.52M64.76M198.13M229.91M153.87M

Anaergia Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.17
Price Trends
50DMA
0.99
Positive
100DMA
1.01
Positive
200DMA
0.86
Positive
Market Momentum
MACD
0.05
Negative
RSI
67.47
Neutral
STOCH
92.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ANRG, the sentiment is Positive. The current price of 1.17 is above the 20-day moving average (MA) of 1.01, above the 50-day MA of 0.99, and above the 200-day MA of 0.86, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 67.47 is Neutral, neither overbought nor oversold. The STOCH value of 92.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ANRG.

Anaergia Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSNPI
76
Outperform
$4.77B17.706.48%6.50%5.08%
TSINE
67
Neutral
C$2.75B267.061.44%2.66%2.60%
64
Neutral
$4.28B11.805.33%250.46%4.10%-9.26%
TSBLX
61
Neutral
C$3.13B86.952.23%2.17%-16.54%-53.85%
TSGRN
58
Neutral
C$14.12M-5.60%-10.37%95.22%
49
Neutral
C$198.71M105.95%-23.78%88.92%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ANRG
Anaergia
1.17
0.87
290.00%
TSE:NPI
Northland Power
18.28
-2.04
-10.03%
TSE:BLX
Boralex Inc Cl A
30.46
1.16
3.96%
TSE:GRN
Greenlane Renewables Inc
0.09
<0.01
12.50%
TSE:INE
Innergex Renewable Energy
13.54
5.12
60.81%

Anaergia Earnings Call Summary

Earnings Call Date:Mar 31, 2025
(Q3-2024)
|
% Change Since: 17.00%|
Next Earnings Date:May 09, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive strategic direction and financial improvements under new leadership. While there is a decline in revenue due to project timing, the company's operational and financial adjustments are yielding positive results. The strategic investments, improved cash position, and ongoing projects suggest a strong foundation for future growth.
Q3-2024 Updates
Positive Updates
Leadership and Strategic Shift
Anaergia introduced new leadership with Assaf Onn as CEO, Greg Wolf as CFO, and Scott Hodgdon as General Counsel. The company is shifting towards a refined sales and project development approach with a focus on a capital-light model.
Improved Financial Performance
Adjusted EBITDA improved by 42% from CAD 11.1 million to CAD 6.4 million this quarter. Loss from operations was substantially reduced year-over-year, and the net loss decreased significantly.
Strong Cash Position
Cash position increased to CAD 40.2 million, primarily due to the strategic investment from Marny, strengthening Anaergia's financial base.
Strategic Investments and Governance Improvements
Closed the Marny investment and completed a share restructuring simplification, converting dual-class shares into a single class to improve governance and align shareholder interests.
Operational Highlights and New Projects
Notable projects include the Riverside water quality control plant upgrade for CAD 13.3 million and the Jeju Island, South Korea project under a letter of intent for CAD 25 million. Anaergia also expanded its presence in Japan and Africa.
Negative Updates
Revenue Decline
Q3 2024 revenues decreased from CAD 34 million in Q3 2023 to CAD 29 million in Q3 2024 due to project completion and delays in new project signings.
Challenges with SB 1383 Adoption
Sluggish rollout of California's Senate Bill 1383, impacting the adoption of Anaergia's solutions in the state.
Company Guidance
During Anaergia's Q3 2024 earnings call, Assaf Onn, the CEO, highlighted several key metrics demonstrating the company's strategic shift towards a capital-light model. Adjusted EBITDA showed a significant improvement of 42%, increasing from CAD 11.1 million to CAD 6.4 million, reflecting operational efficiencies. The company's net loss decreased notably, with a cash position bolstered to CAD 40.2 million due to strategic investments, such as the Marny investment, which also improved the company's financial base. Revenue for Q3 2024 was CAD 29 million, down from CAD 34 million in Q3 2023, primarily due to the completion of Italian Capital Sales projects and delays in new project signings. However, net SG&A expenses decreased by 19.2% compared to the previous year. The company is focusing on sustainable growth, with new projects in California, South Korea, and the U.S., supported by favorable market conditions driven by incentives like the U.S. Inflation Reduction Act and Europe's RePower EU program.

Anaergia Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Anaergia Expands Role in East County Water Purification Project
Positive
Apr 28, 2025

Anaergia Inc. has expanded its project scope with the East County Advanced Water Purification Joint Powers Authority in East San Diego County, California. The change order will see Anaergia providing additional engineering services and equipment, increasing its revenue by C$8.6 million. This development is part of a larger water purification initiative aimed at creating a sustainable and drought-proof drinking water supply for the region. The project will utilize Anaergia’s technology to transform waste into energy, thereby reducing operating costs and benefiting local ratepayers.

Spark’s Take on TSE:ANRG Stock

According to Spark, TipRanks’ AI Analyst, TSE:ANRG is a Neutral.

Anaergia’s overall stock score is impacted by significant financial instability and declining revenue, which are major concerns. However, the company is making strategic moves to improve its operational efficiency and market position. Positive earnings call sentiment and recent corporate partnerships suggest potential recovery, but substantial financial risks remain.

To see Spark’s full report on TSE:ANRG stock, click here.

Business Operations and Strategy
Anaergia and Capwatt Partner for Nine New Biogas Plants in Europe
Positive
Apr 21, 2025

Anaergia Inc. has signed a binding Letter of Intent with Capwatt to design and build nine biomethane facilities in Portugal, Spain, and Italy, expected to generate over C$60 million in revenue. This agreement strengthens Anaergia’s position in the renewable energy sector, enhancing Europe’s green energy infrastructure and accelerating biomethane production, while showcasing Capwatt’s commitment to sustainable energy.

Spark’s Take on TSE:ANRG Stock

According to Spark, TipRanks’ AI Analyst, TSE:ANRG is a Neutral.

Anaergia’s stock score reflects significant financial challenges, with negative equity and declining revenues weighing heavily on its outlook. However, technical analysis offers a neutral perspective, and recent strategic initiatives and partnerships suggest potential recovery. The earnings call and corporate events indicate a shift toward improving operational efficiency and market expansion, but substantial risks remain due to financial instability.

To see Spark’s full report on TSE:ANRG stock, click here.

Business Operations and Strategy
Anaergia and Techbau Partner to Build Biomethane Plants in Italy
Positive
Apr 2, 2025

Anaergia Inc. has finalized a contract with Techbau S.p.A. to build five biomethane production plants in Italy, utilizing Anaergia’s proprietary anaerobic digestion systems. This project aligns with Italy’s sustainability goals and is expected to produce 234,000 MWh of renewable biomethane annually by mid-2026, contributing to the country’s gas pipeline grid and generating over C$27 million in revenue for Anaergia.

Business Operations and StrategyFinancial Disclosures
Anaergia Inc. Reports Positive Financial Outlook Amid Revenue Backlog
Positive
Mar 31, 2025

Anaergia Inc. reported its financial results for the fourth quarter and fiscal year 2024, highlighting a positive outlook supported by a revenue backlog of $103.1 million. Despite a 24.2% decrease in annual revenue due to project completions and delays, the company saw improvements in gross profit and adjusted EBITDA, driven by higher margin contracts and cost management. The net loss improved significantly due to nonrecurring transactions in the prior year, and the company remains confident in its strategic growth plan.

Product-Related AnnouncementsBusiness Operations and Strategy
Anaergia to Develop Biomethane Plants in Italy with QGM Partnership
Positive
Mar 31, 2025

Anaergia Inc., through its subsidiary Anaergia S.r.l., has signed contracts to construct two biomethane production plants in northern Italy, in partnership with QGM S.á.r.l. These facilities will utilize Anaergia’s advanced anaerobic digestion technologies to convert agricultural waste into renewable biomethane, contributing to Italy’s sustainability and decarbonization efforts. The projects, valued at over C$46 million, are expected to be operational by mid-2026, enhancing Italy’s renewable energy supply and reinforcing Anaergia’s position as a leader in the renewable natural gas industry.

Business Operations and Strategy
Anaergia to Build Major Waste Treatment Plant in Fermo, Italy
Positive
Mar 28, 2025

Anaergia Inc., in partnership with Edil Alta S.r.l., has been awarded a contract by the City of Fermo, Italy, to construct a waste treatment plant featuring an anaerobic digestion facility. This facility will process over 35,000 tons of organic waste annually, producing approximately 31,400 MWh of biomethane to be converted into compressed natural gas for vehicle fueling. The project, valued at C$45.5 million, is expected to be completed by mid-2026 and will generate significant revenue for Anaergia, enhancing its position in the renewable energy sector.

Product-Related AnnouncementsBusiness Operations and Strategy
Anaergia to Upgrade UC Davis Anaerobic Digester Facility
Positive
Mar 4, 2025

Anaergia Inc. has entered into agreements to upgrade the Renewable Energy Anaerobic Digester at the University of California, Davis. This facility processes food and grease trap waste into renewable energy, supporting California’s environmental goals. The upgrade, supported by a grant from CalRecycle, will enhance the facility’s efficiency and reliability, generating over C$7 million in revenue for Anaergia. This project highlights Anaergia’s role in advancing renewable energy technology and its commitment to helping institutions like UC Davis achieve carbon neutrality.

Delistings and Listing ChangesBusiness Operations and Strategy
Anaergia Inc. Begins Trading on U.S. OTCQX to Enhance Market Visibility
Positive
Feb 24, 2025

Anaergia Inc. announced that its common shares have begun trading on the OTCQX Best Market in the U.S. under the symbol ANRGF, a move that enhances its visibility and accessibility to U.S. investors. This trading milestone highlights Anaergia’s international appeal and solidifies its status as a global leader in the renewable natural gas industry, potentially attracting more stakeholders and boosting its market presence.

Product-Related AnnouncementsBusiness Operations and Strategy
Anaergia Partners with JGC for Renewable Gas Project in Japan
Positive
Feb 20, 2025

Anaergia Inc. has announced a Letter of Intent with JGC Holdings Corporation for a renewable natural gas project in Japan, where Anaergia will supply technology and equipment. The project will convert agricultural and food waste into biomethane and fertilizer, enhancing Anaergia’s position in the RNG industry and showcasing its capabilities in large-scale infrastructure projects.

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.