DB:7AR

Stock Analysis Report

Executive Summary

Charah Solutions, Inc. provides environmental and maintenance services to the power generation industry in the United States.

Snowflake

Fundamentals

Reasonable growth potential and fair value.

Share Price & News

How has Charah Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 7AR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.4%

7AR

0.4%

DE Commercial Services

0.1%

DE Market


1 Year Return

-72.9%

7AR

-4.0%

DE Commercial Services

8.8%

DE Market

Return vs Industry: 7AR underperformed the German Commercial Services industry which returned -4% over the past year.

Return vs Market: 7AR underperformed the German Market which returned 8.8% over the past year.


Shareholder returns

7ARIndustryMarket
7 Day2.4%0.4%0.1%
30 Day0.7%4.5%5.9%
90 Day-42.4%18.0%15.0%
1 Year-72.9%-72.9%-0.5%-4.0%12.2%8.8%
3 Yearn/a4.5%-4.6%25.5%14.5%
5 Yearn/a-2.3%-15.9%40.1%21.0%

Price Volatility Vs. Market

How volatile is Charah Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Charah Solutions undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 7AR (€1.8) is trading below our estimate of fair value (€5.5)

Significantly Below Fair Value: 7AR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 7AR is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: 7AR is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 7AR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 7AR is good value based on its PB Ratio (0.8x) compared to the DE Commercial Services industry average (2.7x).


Next Steps

Future Growth

How is Charah Solutions forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

116.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7AR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: 7AR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 7AR's is expected to become profitable in the next 3 years.

Revenue vs Market: 7AR's revenue (6.9% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: 7AR's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 7AR's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Charah Solutions performed over the past 5 years?

-31.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 7AR has large one-off items impacting its financial results.

Growing Profit Margin: 7AR's current net profit margins (-3.2%) are lower than last year (-2.1%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 7AR's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare 7AR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 7AR is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (6.1%).


Return on Equity

High ROE: 7AR has a negative Return on Equity (-23.79%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Charah Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: 7AR's short term assets ($111.9M) do not cover its short term liabilities ($156.7M)

Long Term Liabilities: 7AR's short term assets (111.9M) do not cover its long term liabilities (154.2M)


Debt to Equity History and Analysis

Debt Level: 7AR's debt to equity ratio (281%) is considered high

Reducing Debt: Insufficient data to determine if 7AR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 7AR's debt is well covered by operating cash flow (33.6%).

Interest Coverage: 7AR is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: 7AR has a high level of physical assets or inventory.

Debt Coverage by Assets: 7AR's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Charah Solutions's current dividend yield, its reliability and sustainability?

0.13%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years0.1%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 7AR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 7AR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 7AR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 7AR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 7AR's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Charah Solutions's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average management tenure


CEO

Scott Sewell (39yo)

0.8yrs

Tenure

0

Mr. Scott Andrew Sewell has been President, Chief Executive Officer and Director of Charah Solutions, Inc. since January 23, 2019. Mr. Sewell served as Chief Operating Officer of Charah Solutions, Inc. sin ...


Management Age and Tenure

0.7yrs

Average Tenure

53yo

Average Age

Experienced Management: 7AR's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Age and Tenure

1.4yrs

Average Tenure

59yo

Average Age

Experienced Board: 7AR's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 7AR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$33,22116 Sep 19
Scott Sewell
EntityIndividual
Role
Chief Executive Officer
President
Shares14,000
Max PriceUS$2.37
BuyUS$28,20909 Sep 19
Roger Shannon
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares12,000
Max PriceUS$2.35
BuyUS$21,83322 Aug 19
Robert Flexon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,500
Max PriceUS$2.91

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.3%.


Management Team

  • Ron McCall (71yo)

    Senior VP & Director

    • Tenure: 0yrs
    • Compensation: US$1.15m
  • Roger Shannon (53yo)

    CFO & Treasurer

    • Tenure: 0.4yrs
  • Danny Gray

    Executive Vice President of Governmental & Environmental Affairs

    • Tenure: 0yrs
  • Nathan Boone

    Senior Vice President of Business Development

    • Tenure: 0yrs
  • Scott Sewell (39yo)

    President

    • Tenure: 0.8yrs
  • Tony Semak

    Head of Investor Relations

    • Tenure: 0.5yrs
  • Josh Jones

    Vice President of Process & Technology

    • Tenure: 0yrs
  • Jeremy Sochol

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • Steven Brehm

    Vice President of Legal Affairs & Corporate Secretary

    • Tenure: 0yrs

Board Members

  • Bob Flexon (61yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$102.67k
  • Brian Ferraioli (64yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$103.92k
  • Ron McCall (71yo)

    Senior VP & Director

    • Tenure: 0yrs
    • Compensation: US$1.15m
  • Steve Tritch (69yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$131.99k
  • Scott Sewell (39yo)

    President

    • Tenure: 0.8yrs
  • Mignon Clyburn (57yo)

    Independent Director

    • Tenure: 0.7yrs
  • Mark Spender (41yo)

    Independent Director

    • Tenure: 1.8yrs
  • Jack Blossman (54yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$98.92k

Company Information

Charah Solutions, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Charah Solutions, Inc.
  • Ticker: 7AR
  • Exchange: DB
  • Founded: 1987
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$55.918m
  • Listing Market Cap: US$50.818m
  • Shares outstanding: 29.59m
  • Website: https://www.charah.com

Number of Employees


Location

  • Charah Solutions, Inc.
  • 12601 Plantside Drive
  • Louisville
  • Kentucky
  • 40299
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHRANYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2018
7ARDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2018

Biography

Charah Solutions, Inc. provides environmental and maintenance services to the power generation industry in the United States. The company operates through two segments, Environmental Solutions; and Mainten ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 21:38
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.