Investment Thesis
ENVIRI exhibits severe financial distress with zero interest coverage (unable to service debt from operations), negative free cash flow despite modest operating cash generation, and deteriorating profitability. The 6.68x debt-to-equity ratio combined with stagnant revenue growth and negative net margins creates acute solvency and sustainability risks.
Strengths
- Maintains positive operating cash flow of 21.5M despite unprofitability
- Retains 105.7M in cash reserves providing near-term operational liquidity
- Large revenue base of 549.8M provides operational scale and market presence
Risks
- Interest coverage of 0.0x—operating income cannot cover debt service obligations, indicating imminent financial stress
- Negative free cash flow of -12.2M demonstrates unsustainable cash burn despite positive OCF
- Debt-to-equity ratio of 6.68x with 1.6B long-term debt creates extreme leverage vulnerability
- Net loss of 10.7M with deteriorating EPS (-28.4% YoY) signals operational collapse
- Quick ratio of 0.86x indicates insufficient liquid assets to cover short-term liabilities
- Zero revenue growth (0.0% YoY) with razor-thin 0.1% operating margin leaves no margin for error
Key Metrics to Watch
- Interest Coverage Ratio trajectory (critical—currently insolvent at 0.0x)
- Free Cash Flow quarterly trend (must return to positive to avoid cash depletion)
- Debt reduction progress and refinancing ability
- Revenue growth acceleration and operating margin expansion
- Cash balance depletion rate against burn rate
Financial Metrics
Revenue
549.8M
Net Income
-10.7M
EPS (Diluted)
$-0.13
Free Cash Flow
-12.2M
Total Assets
2.7B
Cash
105.7M
Profitability Ratios
Gross Margin
14.5%
Operating Margin
0.1%
Net Margin
-1.9%
ROE
-4.6%
ROA
-0.4%
FCF Margin
-2.2%
Balance Sheet & Liquidity
Current Ratio
1.13x
Quick Ratio
0.86x
Debt/Equity
6.68x
Debt/Assets
89.8%
Interest Coverage
0.03x
Long-term Debt
1.6B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-12T08:04:22.673633 |
Data as of: 2026-03-31 |
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