EarthRenew (ERTH) AI Stock Analysis

• Market Cap: $21.66M
• Dividend Yield: N/A
• Average Volume (3M): 167.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: -29.91%
• EPS Growth: -89.29%
• Country: CA
• Employees: 19
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Independent Power Producers
• EPS (TTM): >-0.01
• Shares Outstanding: 160,441,130
• 10 Day Avg. Volume: 84,808
• 30 Day Avg. Volume: 167,381
• PEG Ratio: <0.01
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.82
• P/FCF Ratio: -41.18
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 2.74
• Enterprise Value/Gross Profit: 28.04
• Enterprise Value/Ebitda: -8.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

EarthRenew's overall stock score is primarily impacted by its challenging financial performance, characterized by negative profitability and liquidity concerns. While technical indicators show bullish momentum, overbought signals suggest caution. The valuation is weak due to a negative P/E ratio and lack of dividends, further weighing down the score.

EarthRenew Business Overview & Revenue Model

Company Description

EarthRenew (ERTH) is a sustainable agriculture company focused on providing innovative solutions for enhancing soil health and improving crop yields. Operating primarily in the agricultural sector, ERTH specializes in the production of natural fertilizers and soil amendments derived from organic materials, including regenerative processes that convert waste into valuable agricultural inputs. The company's core products include soil conditioners and nutrient-rich fertilizers that support sustainable farming practices and promote environmental stewardship.

How the Company Makes Money

EarthRenew generates revenue primarily through the sale of its organic fertilizers and soil amendments to farmers and agricultural businesses. The company benefits from a growing demand for sustainable agricultural products as more farmers seek eco-friendly alternatives to synthetic fertilizers. Key revenue streams include direct sales to agricultural producers, partnerships with distributors, and collaborations with agricultural organizations focused on promoting sustainable farming practices. Additionally, EarthRenew may have opportunities for revenue through research and development projects aimed at enhancing product effectiveness and expanding its product line. The company's commitment to sustainability and innovation positions it favorably within the agricultural sector, contributing to its earnings potential.

EarthRenew Financial Statement Overview

Summary

EarthRenew faces substantial financial challenges across all verticals. The income statement reflects declining revenue and persistent losses, while the balance sheet shows moderate leverage but negative returns on equity. Cash flow issues further exacerbate the company's financial position, indicating a need for strategic improvements to achieve financial stability.

Income Statement

EarthRenew's income statement reveals significant challenges, with declining revenue and negative profit margins. The gross profit margin has decreased over the years, and the company has been unable to achieve positive net income, indicating ongoing profitability issues. The negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio indicates a reasonable level of equity financing, but the overall financial health is weakened by persistent losses.

Cash Flow

Cash flow analysis indicates significant challenges, with negative free cash flow and operating cash flow in recent years. The free cash flow to net income ratio is negative, highlighting cash flow issues. The company struggles with cash generation, which could impact its ability to fund operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.55M	6.90M	13.92M	17.27M	12.30M	506.86K
Gross Profit	640.46K	639.05K	1.35M	2.15M	3.30M	146.83K
EBITDA	-2.05M	-2.96M	1.89M	-5.66M	-3.31M	-3.55M
Net Income	-3.88M	-4.27M	84.19K	-7.08M	-4.70M	-3.88M
Balance Sheet
Total Assets	20.36M	19.65M	29.41M	38.77M	26.79M	5.64M
Cash, Cash Equivalents and Short-Term Investments	492.06K	119.90K	1.04M	3.63M	1.27M	953.77K
Total Debt	5.85M	3.30M	3.90M	4.15M	3.65M	393.32K
Total Liabilities	10.06M	8.47M	14.11M	23.86M	16.26M	954.61K
Stockholders Equity	10.30M	11.18M	15.29M	14.92M	10.54M	4.68M
Cash Flow
Free Cash Flow	-2.68M	-137.83K	-2.20M	-8.70M	-2.38M	-3.75M
Operating Cash Flow	-452.25K	310.05K	-520.45K	-6.28M	-416.71K	-3.75M
Investing Cash Flow	-2.13M	-314.01K	-1.21M	-2.32M	-3.85M	0.00
Financing Cash Flow	3.01M	-913.74K	-862.35K	10.95M	4.59M	4.27M

EarthRenew Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ERTH, the sentiment is Positive. The current price of 0.13 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.10, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 56.42 is Neutral, neither overbought nor oversold. The STOCH value of 50.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ERTH.

EarthRenew Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MGRO	57 Neutral	$41.91M	―	-310.19%	―	49.17%	-1068.82%
ERTH	48 Neutral	$21.66M	―	-32.75%	―	-29.91%	-89.29%
NPK	45 Neutral	C$92.70M	―	-36.07%	―	-36.74%	15.76%
KRN	43 Neutral	C$6.39M	―	-15.71%	―	―	51.79%

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.