ADES Intrinsic Stock Value – Advanced Emissions Solutions Q1 Results Increase Risk Of Near-Term Dilution: Sell
June 16, 2023
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Advanced Emissions Solutions ($NASDAQ:ADES) (AES) recently reported its Q1 results which revealed that the company has a high risk of near-term dilution due to its weak performance. AES is an innovative air pollution control technology company that has developed solutions for industrial, utility and municipal customers to reduce emissions from stationary sources. AES offers efficient and cost-effective solutions, including advanced emission reduction technologies, advanced control systems, and integrated aftermarket services. The Q1 results showed a marked drop in sales numbers due to the pandemic and an increase in operating expenses which added to the company’s financial burden. This weak performance has put AES at risk of dilution since increasing share float could reduce shareholder value.
Due to the high-risk of near-term dilution, it is recommended to sell AES shares and start looking for alternative investments. AES may be able to turn things around in the long term, but the near-term risk of dilution makes it a risky investment. Investors should be cautious and consider the potential downside before investing in AES shares.
Stock Price
Advanced Emission Solutions, Inc. released its first quarter results on Thursday, showing a significant increase in risk of near-term dilution. The stock opened on Thursday at $1.5 and closed at the same price. The results indicate that the company may need to raise additional funds through equity offerings with the potential for diluting existing shares. The increased risk of dilution is likely to pressure the stock price further and has prompted sell recommendations from analysts watching the company.
Advanced Emission Solutions must act quickly to mitigate further downside risk. Failure to do so could result in further losses for shareholders and continued downward pressure on the stock price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ADES. More…
| Total Revenues | Net Income | Net Margin |
| 97.39 | -13.39 | -15.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ADES. More…
| Operations | Investing | Financing |
| -25.86 | -7.07 | 22.21 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ADES. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 233.95 | 72.74 | 4.95 |
Key Ratios Snapshot
Some of the financial key ratios for ADES are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.6% | – | -12.8% |
| FCF Margin | ROE | ROA |
| -38.0% | -5.2% | -3.3% |
Analysis – ADES Intrinsic Stock Value
At GoodWhale, we recently conducted an analysis of ADVANCED EMISSIONS SOLUTIONS’s wellbeing. After careful evaluation, we believe the intrinsic value of ADVANCED EMISSIONS SOLUTIONS share to be around $3.9. This figure was calculated by our proprietary Valuation Line, which takes into account a variety of financial metrics such as earnings, dividends, and cash flow. At the moment, ADVANCED EMISSIONS SOLUTIONS stock is traded at $1.5, which is significantly lower than its estimated true value and represents a 61.7% discount for potential investors. As such, we consider ADVANCED EMISSIONS SOLUTIONS to be an attractive opportunity for a long-term investment. More…
Peers
The company’s products and services are used by utilities and power plant operators around the world to reduce emissions of sulfur dioxide (SO2), nitrogen oxides (NOx), and mercury (Hg). Advanced Emissions Solutions Inc’s competitors include Clean Coal Technologies Inc, Dalrymple Bay Infrastructure Ltd, and Resources Global Development Ltd.
– Clean Coal Technologies Inc ($OTCPK:CCTC)
Coal is an abundant natural resource that can be used to generate electricity, but it is also a major source of pollution. Burning coal releases emissions that contribute to climate change, acid rain, and smog. Clean Coal Technologies Inc is a company that is working on developing new technologies to make coal cleaner and more efficient. The company has a market cap of 1.65M and a ROE of 7.65%.
– Dalrymple Bay Infrastructure Ltd ($ASX:DBI)
Dalrymple Bay Infrastructure Ltd is an Australian company that owns and operates the Dalrymple Bay Coal Terminal, one of the largest coal export terminals in the world. The company has a market cap of 2.49 billion as of 2022 and a return on equity of 8.79%. The company’s main business is operating the Dalrymple Bay Coal Terminal, which is responsible for exporting coal from Australia to countries around the world. The company also owns and operates a number of other infrastructure assets in Australia, including a port and a railway.
– Resources Global Development Ltd ($SGX:QSD)
The company’s market cap is 106.2M as of 2022 and its ROE is 41.4%. The company is involved in the development of global resources and provides services to clients in a variety of industries.
Summary
Advanced Emissions Solutions reported weak first quarter results, raising the risk of near-term dilution. Decline in volume and pricing pressure were the primary factors behind the weak financial performance. Additionally, the balance sheet showed a decrease in cash and cash equivalents, indicating potential liquidity issues. Investors should look for evidence of a turnaround before considering an investment in Advanced Emissions Solutions.
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