It's been a great afternoon session for Eos Energy Enterprises investors, who saw their shares rise 5.9% to a price of $15.05 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
The Market May Be Overvaluing Eos Energy Enterprises's Earnings and Assets:
Eos Energy Enterprises, Inc. designs, develops, manufactures, and markets energy storage solutions for utility-scale, microgrid, and commercial and industrial applications in the United States. The company belongs to the Industrials sector, which has an average price to earnings (P/E) ratio of 24.03. In contrast, Eos Energy Enterprises has a trailing 12 month P/E ratio of -1.8 based on its earnings per share of $-8.31.
Eos Energy Enterprises has moved 381.7% over the last year compared to 12.9% for the S&P 500 -- a difference of 368.8%. Eos Energy Enterprises has a 52 week high of $19.86 and a 52 week low of $2.73.
The Firm Has Negative Equity Levels:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $496 | $219 | $4,598 | $17,924 | $16,378 | $15,606 |
| Net Margins | -16025% | -32257% | -2702% | -1282% | -1401% | -4395% |
| Net Income (k) | -$79,483 | -$70,643 | -$124,216 | -$229,813 | -$229,506 | -$685,870 |
| Net Interest Expense (k) | $2 | -$115 | -$604 | -$7,915 | -$1,795 | $4,395 |
| Depreciation & Amort. (k) | $2,083 | $1,558 | $2,613 | $6,814 | $9,751 | $7,809 |
| Diluted Shares (k) | 3,930 | 9,409 | 52,664 | 62,440 | 126,968 | 212,040 |
| Earnings Per Share | -$20.22 | -$7.51 | -$2.36 | -$3.68 | -$1.81 | -$4.55 |
| EPS Growth | n/a | 62.86% | 68.58% | -55.93% | 50.82% | -151.38% |
| Free Cash Flow (k) | -$26,133 | -$30,164 | -$131,736 | -$216,929 | -$174,341 | -$187,088 |
| CAPEX (k) | $2,299 | $3,605 | $15,589 | $20,072 | $29,323 | $33,152 |
| Total Debt (k) | $76,559 | $2,422 | $110,858 | $178,703 | $207,191 | $318,910 |
| Current Ratio | 0.07 | 9.38 | 4.77 | 0.91 | 2.01 | 2.77 |
Eos Energy Enterprises has rapidly growing revenues and increasing reinvestment in the business, an excellent current ratio of 2.77, and a strong EPS growth trend. However, the firm has negative cash flows.
