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ADES

Advanced Emissions SolutionsNasdaqGM:ADES Stock Report

Market Cap

US$115.3m

7D

-4.6%

1Y

18.7%

Updated

02 Dec, 2021

Data

Company Financials
ADES fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends0/6

ADES Stock Overview

Advanced Emissions Solutions, Inc., together with its subsidiaries, provides environmental technologies and specialty chemicals in the United States.

Advanced Emissions Solutions Competitors

Balchem

NasdaqGS:BCPC

US$5.1b

American Vanguard

NYSE:AVD

US$439.9m

Midwest Energy Emissions

OTCPK:MEEC

US$61.1m

Price History & Performance

Summary of all time highs, changes and price drops for Advanced Emissions Solutions
Historical stock prices
Current Share PriceUS$6.36
52 Week HighUS$8.41
52 Week LowUS$4.60
Beta0.55
1 Month Change-5.36%
3 Month Change-6.61%
1 Year Change18.66%
3 Year Change-39.54%
5 Year Change-31.83%
Change since IPO324.00%

Recent News & Updates

Nov 08

The Bottom Fishing Club: Advanced Emissions Solutions

Advanced Emissions Solutions could have cash on the balance sheet almost double the current quote by next summer. Pollution-control businesses should ride ESG investment and business sales trends higher over the long term. A better-than-expected sale price for Red River by early 2022 could spark a dramatic stock gain. Technical momentum indicators may be signaling a lack of overhead share supply now exists.

Oct 13

Advanced Emissions Solutions: Balance Sheet Trends Point To Higher Prices

Liquidity ratio continues to grow. Leverage has come down significantly on the balance sheet, paving the way for increased investment. Retained earnings now top $60 million. Sustained investment to lead to strong growth in sales and earnings.

Sep 15

Advanced Emissions Solutions: How To Build The Watch As Opposed To Asking What Time It Is

ADES should have pro-forma year-end cash of $4.50 to $5 per share. Hedge funds and fast money retail traders threw the baby out with the bathwater after Q2 FY 2021 EBITDA margins were weak at ADES' APT segment. There are a number of nuances for these abnormally and surprisingly low margins. I will explain these nuances in this article.

Sep 03

Advanced Emissions Solutions Is Too Cheap To Pass Up

The shares have cratered over the past year, and I want to review the business to see if this is a "hold" or "sell." I think the combination of improving business and cheap stock is too compelling to pass up, and I reiterate my buy recommendation. For those too nervous to buy shares at this point, the options market offers a way to generate 7% from put premia over 6 months.

Shareholder Returns

ADESUS ChemicalsUS Market
7D-4.6%-3.4%-3.5%
1Y18.7%21.3%19.4%

Return vs Industry: ADES matched the US Chemicals industry which returned 18.2% over the past year.

Return vs Market: ADES matched the US Market which returned 17.8% over the past year.

Price Volatility

Is ADES's price volatile compared to industry and market?
ADES volatility
ADES Average Weekly Movement5.2%
Chemicals Industry Average Movement5.5%
Market Average Movement6.1%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: ADES is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ADES's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1996136Greg Markenhttps://www.advancedemissionssolutions.com

Advanced Emissions Solutions, Inc., together with its subsidiaries, provides environmental technologies and specialty chemicals in the United States. It operates through two segments, Refined Coal and Advanced Purification Technologies. The company offers CyClean technology, a pre-combustion coal treatment process to enhance combustion, as well as to reduce emissions of nitrogen oxide and mercury from coals burned in cyclone boilers; and M-45 and M-45-PC technologies, which are pre-combustion coal treatment technologies used to control emissions from circulating fluidized bed boilers and pulverized coal boilers.

Advanced Emissions Solutions Fundamentals Summary

How do Advanced Emissions Solutions's earnings and revenue compare to its market cap?
ADES fundamental statistics
Market CapUS$115.28m
Earnings (TTM)US$55.01m
Revenue (TTM)US$87.94m

2.1x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADES income statement (TTM)
RevenueUS$87.94m
Cost of RevenueUS$50.42m
Gross ProfitUS$37.53m
Expenses-US$17.49m
EarningsUS$55.01m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.01
Gross Margin42.67%
Net Profit Margin62.56%
Debt/Equity Ratio0%

How did ADES perform over the long term?

See historical performance and comparison

Valuation

Is Advanced Emissions 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: ADES ($6.36) is trading below our estimate of fair value ($38.73)

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


Price To Earnings Ratio

PE vs Industry: ADES is good value based on its PE Ratio (2.1x) compared to the US Chemicals industry average (20.6x).

PE vs Market: ADES is good value based on its PE Ratio (2.1x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ADES is good value based on its PB Ratio (0.8x) compared to the US Chemicals industry average (2.4x).


Future Growth

How is Advanced Emissions Solutions forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.2%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Advanced Emissions Solutions has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Advanced Emissions Solutions performed over the past 5 years?

-34.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADES has a high level of non-cash earnings.

Growing Profit Margin: ADES became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ADES's earnings have declined by 34.2% per year over the past 5 years.

Accelerating Growth: ADES has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ADES has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (24.1%).


Return on Equity

High ROE: ADES's Return on Equity (39%) is considered high.


Financial Health

How is Advanced Emissions Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: ADES's short term assets ($101.8M) exceed its short term liabilities ($24.5M).

Long Term Liabilities: ADES's short term assets ($101.8M) exceed its long term liabilities ($16.2M).


Debt to Equity History and Analysis

Debt Level: ADES is debt free.

Reducing Debt: ADES had no debt 5 years ago.

Debt Coverage: ADES has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ADES has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: ADES is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Greg Marken (39 yo)

1.42yrs

Tenure

US$659,324

Compensation

Mr. Greg P. Marken has been President and Chief Executive Officer at Advanced Emissions Solutions, Inc. since November 09, 2021 and served as its Interim President and Interim Chief Executive Officer since...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD659.32K) is about average for companies of similar size in the US market ($USD563.50K).

Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ADES's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: ADES's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Advanced Emissions Solutions, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Advanced Emissions Solutions, Inc.
  • Ticker: ADES
  • Exchange: NasdaqGM
  • Founded: 1996
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$115.278m
  • Shares outstanding: 18.30m
  • Website: https://www.advancedemissionssolutions.com

Number of Employees


Location

  • Advanced Emissions Solutions, Inc.
  • 8051 E. Maplewood Avenue
  • Suite 210
  • Greenwood Village
  • Colorado
  • 80111
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 23:38
End of Day Share Price2021/12/02 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.