NasdaqGM:ADES

Stock Analysis Report

Advanced Emissions Solutions

Executive Summary

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

Snowflake

Fundamentals

Undervalued with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.5%

ADES

2.0%

US Chemicals

1.0%

US Market


1 Year Return

31.3%

ADES

-5.9%

US Chemicals

6.7%

US Market

Return vs Industry: ADES exceeded the US Chemicals industry which returned -5.9% over the past year.

Return vs Market: ADES exceeded the US Market which returned 6.7% over the past year.


Share holder returns

ADESIndustryMarket
7 Day3.5%2.0%1.0%
30 Day-5.8%-2.8%-1.8%
90 Day5.8%-2.6%-1.8%
1 Year43.3%31.3%8.1%-5.9%9.1%6.7%
3 Year109.9%66.0%43.4%17.3%46.1%36.6%
5 Year-11.6%-30.1%46.1%14.8%66.9%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Advanced Emissions Solutions undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: ADES ($13.66) is trading below our estimate of fair value ($140.22)

Significantly Undervalued: ADES is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: ADES is good value based on its PE Ratio (7.4x) compared to the Chemicals industry average (19.4x).

PE vs Market: ADES is good value based on its PE Ratio (7.4x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: ADES is good value based on its PEG Ratio (0.2x)


Price Based on Value of Assets

PB vs Industry: ADES is overvalued based on its PB Ratio (2.3x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

How is Advanced Emissions Solutions expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

38.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ADES's forecast earnings growth (38.6% per year) is above the savings rate (2.7%).

Earnings vs Market: ADES's earnings (38.6% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ADES's revenue (29.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ADES's revenue (29.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if ADES's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

41.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ADES has become profitable over the past 5 years, growing earnings by 41.6% per year.

Accelerating Growth: ADES's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ADES had negative earnings growth (-1.9%) over the past year, making it difficult to compare to the Chemicals industry average (-2%).


Return on Equity

High ROE: ADES's Return on Equity (32.5%) is considered high.


Return on Assets

ROA vs Industry: ADES has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: ADES's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Advanced Emissions Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: ADES's short term assets ($48.6M) exceeds its short term liabilities ($39.7M)

Long Term Liabilities: ADES's short term assets (48.6M) exceeds its long term liabilities (39.7M)


Debt to Equity History and Analysis

Debt Level: ADES's debt to equity ratio (47.1%) is considered high

Reducing Debt: ADES had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: ADES's debt is well covered by operating cash flow (47.5%).

Interest Coverage: ADES's interest payments on its debt are not well covered by EBIT (0.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: ADES's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

7.32%

Current Dividend Yield


Dividend Yield vs Market

company7.3%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: ADES's dividend (7.32%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: ADES's dividend (7.32%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: Whilst dividend payments have been stable, ADES has been paying a dividend for less than 10 years.

Growing Dividend: ADES has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54%), ADES's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

L. Sampson (48yo)

4.5yrs

Tenure

US$1,600,702

Compensation

Mr. L. Heath Sampson has been the Chief Executive Officer and President of Advanced Emissions Solutions, Inc. since April 1, 2015. Mr. Sampson served as Treasurer of Advanced Emissions Solutions, Inc. from ...


CEO Compensation Analysis

Compensation vs. Market: L.'s total compensation ($USD1.60M) is about average for companies of similar size in the US market ($USD1.17M).

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


Management Age and Tenure

1.0yrs

Average Tenure

42yo

Average Age

Experienced Management: ADES's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

3.3yrs

Average Tenure

50yo

Average Age

Experienced Board: ADES's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$620,04405 Sep 19
Alta Fundamental Advisers, LLC
EntityCompany
Shares50,200
Max PriceUS$12.47
BuyUS$312,20829 Aug 19
Alta Fundamental Advisers, LLC
EntityCompany
Shares25,000
Max PriceUS$12.49
BuyUS$320,18127 Aug 19
Alta Fundamental Advisers, LLC
EntityCompany
Shares25,747
Max PriceUS$12.44
BuyUS$345,31723 Aug 19
Alta Fundamental Advisers, LLC
EntityCompany
Shares28,200
Max PriceUS$12.64
BuyUS$670,46021 Aug 19
Alta Fundamental Advisers, LLC
EntityCompany
Shares56,243
Max PriceUS$12.04
BuyUS$568,79403 Jan 19
Alta Fundamental Advisers, LLC
EntityCompany
Shares55,000
Max PriceUS$10.34
SellUS$462,74003 Jan 19
Alta Fundamental Advisers, LLC
EntityCompany
Shares45,000
Max PriceUS$10.28
BuyUS$647,84331 Dec 18
Alta Fundamental Advisers, LLC
EntityCompany
Shares65,000
Max PriceUS$9.99
SellUS$496,98031 Dec 18
Alta Fundamental Advisers, LLC
EntityCompany
Shares50,000
Max PriceUS$9.94

Ownership Breakdown


Management Team

  • L. Sampson (48yo)

    CEO, President & Director

    • Tenure: 4.5yrs
    • Compensation: US$1.60m
  • Joe Wong

    Chief Technology Officer

    • Tenure: 0.5yrs
  • Greg Marken (37yo)

    CFO, Secretary & Treasurer

    • Tenure: 1.6yrs
    • Compensation: US$669.02k
  • Ted Sanders (42yo)

    General Counsel

    • Tenure: 2.7yrs
    • Compensation: US$494.20k
  • Lorraine Lang

    Vice President of Human Resources

    • Tenure: 0.5yrs
  • Audra Shine

    Chief of Staff

    • Tenure: 0.5yrs

Board Members

  • J. Simonton (75yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: US$177.01k
  • Carol Eicher (60yo)

    Director

    • Tenure: 0.5yrs
  • Brian Leen (50yo)

    Director

    • Tenure: 0.7yrs
  • R. Pate (64yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$170.76k
  • L. Sampson (48yo)

    CEO, President & Director

    • Tenure: 4.5yrs
    • Compensation: US$1.60m
  • Louis Wells (49yo)

    Chairman of the Board

    • Tenure: 3.5yrs
    • Compensation: US$206.18k
  • Gilbert Li (41yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$250.01k

Company Information

Advanced Emissions Solutions, Inc.'s company bio, 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$247.587m
  • Shares outstanding: 18.12m
  • Website: https://www.advancedemissionssolutions.com

Number of Employees


Location

  • Advanced Emissions Solutions, Inc.
  • 640 Plaza Drive
  • Suite 270
  • Highlands Ranch
  • Colorado
  • 80129
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADESNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDOct 2003
OXQ1DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2003

Biography

Advanced Emissions Solutions, Inc., together with its subsidiaries, provides emission reduction technologies and specialty chemicals in the United States. It operates through two segments, Refined Coal; an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:44
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.

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