Charah Story

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CHRA -- USA Stock  

USD 3.94  0.14  3.43%

The upcoming quarterly report is expected on the 25th of March 2021. The stock is undergoing an active upward rally. Charah Solutions Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 2.16 Million. The current year Free Cash Flow is expected to grow to about 65.6 M, whereas Average Assets are forecasted to decline to about 464.7 M. As many millenniums are trying to avoid industrials space, it makes sense to go over Charah Solutions a little further and try to understand its current market patterns. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over a month ago
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How much will Charah Solutions owe in February?
This firm currently holds 213.55 M in liabilities with Debt to Equity (D/E) ratio of 3.76, implying the firm greatly relies on financing operations through barrowing. The company has a current ratio of 1.14, suggesting that it is in a questionable position to pay out its financial obligations when due.
Charah Solutions financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Charah Solutions, including all of Charah Solutions's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Charah Solutions assets, the company is considered highly leveraged. Understanding the composition and structure of overall Charah Solutions debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Charah Total Debt

Charah Solutions liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Charah Solutions has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Charah Solutions balance sheet include debt obligations and money owed to different Charah Solutions vendors, workers, and loan providers. Below is the chart of Charah main long-term debt accounts currently reported on its balance sheet.
You can use Charah Solutions financial leverage analysis tool to get a better grip on understanding its financial position

How important is Charah Solutions's Liquidity

Charah Solutions financial leverage refers to using borrowed capital as a funding source to finance Charah Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Charah Solutions financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Charah Solutions's total debt and its cash.

Purchase by Sewell Scott Andrew of 5000 shares of Charah Solutions

Legal trades by Charah Solutions insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Charah insider trading alert for perchase of common stock by Sewell Scott Andrew, President and CEO, on 17th of December 2020. This event was filed by Charah Solutions Inc with SEC on 2020-12-17. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Charah Solutions Indicators

The current price rise of Charah Solutions could raise concerns from investors as the firm it trading at a share price of 3.85 on very low momentum in volume. The company management teams may have good odds in positioning the firm resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 5.74. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Charah Solutions partners.

Asset Breakdown

283.6 M
Assets Non Current
176.3 M
131.6 M
Current Assets
Total Assets415.23 Million
Current Assets131.63 Million
Assets Non Current283.6 Million
Goodwill176.25 Million
Tax Assets1.52 Million

Will Charah Solutions growth be reasonable after the rise?

The potential upside is down to 3.09 as of today. Charah Solutions currently demonstrates below-verage downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.48. However, we do advice investors to further question Charah Solutions expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Current Takeaway on Charah Solutions Investment

Whereas many other companies under the waste management industry are still a bit expensive, Charah Solutions may offer a potential longer-term growth to investors. The bottom line, as of the 16th of January 2021, we believe that Charah Solutions is currently fairly valued with below average probability of distress in the next two years. Our overall 30 days advice on the company is Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Charah Solutions. Please refer to our Terms of Use for any information regarding our disclosure principles.

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