ERTH.C FERTILIZER CANADIAN FERTILIZER DEMAND INCREASINGPosted byu/jayfoxpox
12 days ago
Why this is still undervalued:
"On a consolidated basis, the total combined revenue of EarthRenew and Replenish for period of January to December 2021 was $15.1 million. Consolidated results since closing of the acquisition of Replenish on May 1, 2021 is $12.2 million in revenue. On this basis, EarthRenew is anticipating positive earnings from operations results for Q4, 2021. "
Consider similar RNG companies. GRN is producing flat earnings and XBC is burning through lots of cash yet both are trading at a 3p/s (ttm) while ERTH is only trading after this small pump is only trading at a 1.6 p.s (ttm). Their Beseiker project is online and running and is expected to sell out again and with this cost of fertilizer going up I expect them to beat their 24 m revenue target. Orders are already happening and they will likely be backlogged again so really they should be trading ATLEAST at a forward 3 p/s , meaning a 3x on today's prices. That target can easily go up as sentiment changes in GRN and XBC as well so the target is not fixed.
When Bethune comes online in 2023 rev should expect to be 100m with higher margins as they formed a special partnership with K+S . This should bring them to at least a 300m marketcap in the future.