A Fresh Look at Enviri’s Valuation After Strategic Review of Clean Earth and Lowered Earnings Guidance

Enviri (NYSE:NVRI) announced its third-quarter earnings with flat revenue and a deeper net loss, prompting management to lower full-year adjusted EPS and EBITDA guidance. The company also highlighted record results in its Clean Earth division, which is now under strategic review.

See our latest analysis for Enviri.

Despite a rocky year for earnings, Enviri’s stock price has staged a notable recovery, with a 34% gain over the past three months and a year-to-date share price return of nearly 59%. This hints at renewed investor confidence amid asset sale speculation and ongoing restructuring. The 1-year total shareholder return stands out even more at nearly 87%, showing that longer-term investors who’ve weathered past volatility have been well rewarded. However, the five-year return is still negative, reflecting the deeper challenges faced by the company over the longer haul.

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The question now is whether Enviri’s robust recent rally presents an undervalued opportunity for investors, or if the current share price already reflects all the upside from a potential Clean Earth sale and future turnaround plans.

Most Popular Narrative: 16.1% Undervalued

Enviri's most followed narrative puts its fair value at $15.67, notably higher than the last close of $13.14. That gap is drawing attention from those tracking a recovery and weighing whether the market is still behind the curve on the turnaround thesis.

"Expanding sustainability and recycling services, along with operational improvements, are expected to drive revenue growth, stable cash flows, and improved profitability. Strategic review, including a potential business divestiture, aims to enhance capital allocation and accelerate financial performance improvements."

Read the complete narrative.

Curious why analysts believe Enviri’s upside is just getting started? The most popular narrative conceals key assumptions about future growth, profit margins, and a bold capital allocation strategy. Signals of a shakeup can be found in the numbers behind this value assessment. Only a detailed analysis uncovers the full financial story in play.

Result: Fair Value of $15.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in global steel demand or delays in strategic alternatives could undermine Enviri’s earnings recovery and limit recent optimism.

Find out about the key risks to this Enviri narrative.

Build Your Own Enviri Narrative

Don’t just take these perspectives at face value; you can examine the latest figures firsthand and shape your own view on Enviri’s story in just a few minutes. Do it your way

A great starting point for your Enviri research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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