Company Overview
Smart Powerr Corp. operates within the waste energy recycling industry in China, providing energy saving and recovery facilities for various energy-intensive industries as well as waste energy recycling systems specifically designed for nonferrous metal plants. The company focuses on clean-technology and energy solutions, positioning itself within the Utilities sector and the Utilities - Renewable industry, which generally involves the generation and distribution of power from renewable sources or the management of waste-derived energy streams. This entity currently maintains a market capitalization of $4.66M and employs 14 individuals to support its operational scope. The combination of a market cap under $5 million and annual revenue of $173,659 indicates that Smart Powerr Corp. is a micro-cap enterprise with a relatively small operational footprint compared to larger utility peers.
Financial Health
The company reported a revenue of $173,659 for the trailing twelve months, yet it recorded a net income of $-3,036,377 and an EBITDA of $-2,722,341, revealing a significant structural gap where operating costs and expenses far exceed total revenue generation. This disparity suggests that the cost structure is heavily weighted toward fixed costs or one-time expenses that are not covered by current sales volumes, resulting in a loss of over three million dollars despite modest revenue. Despite the net losses, the company reports a free cash flow of $70.38M, which provides substantial financial flexibility to fund operations, invest in technology, or service debt obligations without immediate reliance on external equity financing. The gross margin stands at 45.9%, indicating that the company retains a significant portion of revenue after direct production costs, whereas the operating margin is -235.1%, highlighting that overhead expenses are consuming more than double the revenue. The profit margin is listed at 0.0%, which aligns with the net loss position where the bottom line remains deeply negative. Regarding liquidity and leverage, the company holds $131.88M in cash against a debt load of $3.12M, resulting in a debt-to-equity ratio of 2.64. While the cash position is robust, the debt-to-equity ratio suggests a leveraged balance sheet structure relative to equity, though the massive cash reserve significantly mitigates immediate solvency risks. The current ratio is 8.97, indicating an exceptionally strong short-term liquidity position where current assets are nearly nine times greater than current liabilities. Furthermore, the return on equity is -2.7% and the return on assets is -1.3%, metrics that reveal that management has not yet generated positive returns on the capital invested in the business, a common characteristic in early-stage or highly capital-intensive utility projects.
Valuation Assessment
The trailing twelve-month P/E ratio is N/A and the forward P/E is also N/A, implying that traditional earnings-based valuation multiples cannot be applied due to the company's persistent net losses and lack of positive earnings growth. Consequently, the market values the company based on asset backing, as evidenced by a price-to-book ratio of 0.01, which indicates that the market capitalizes the company at a fraction of its book value. This low price-to-book ratio suggests that investors are not assigning a significant premium over book value, potentially reflecting concerns about future earnings potential or asset quality. Alternative valuation metrics provide further insight, with a price-to-sales ratio of 26.84 and an EV/EBITDA of 45.58, suggesting that the market is pricing in high expectations for future recovery or that the valuation is heavily weighted toward asset value rather than current profitability. The stock has experienced extreme volatility, with a 52-week high of $14.70 and a 52-week low of $0.20. Given the current market capitalization and the wide range between the high and low, the security is trading significantly below its recent peak, though the current price relative to the low suggests a wide trading band typical of low-float micro-cap securities. The beta is 0.33, which indicates that the stock's price volatility is less than half that of the broader market, suggesting it behaves as a defensive asset or is less sensitive to general market movements compared to large-cap equities.
Growth & Income
The revenue growth year-over-year is N/A and the earnings growth year-over-year is N/A, indicating that there is no available historical data to determine a growth trajectory or to assess whether earnings are growing faster or slower than revenue. Since the company does not currently pay dividends, the dividend yield is N/A and the payout ratio is 0.0%, meaning the company does not distribute earnings to shareholders and instead retains all cash flow for operational reinvestment or to cover losses. The absence of a dividend payout ratio is consistent with a net loss position, where retaining cash is a necessity rather than a discretionary choice for income distribution. The overall growth and income profile for Smart Powerr Corp. is characterized by a lack of historical growth metrics and a complete absence of dividend income, reflecting a high-risk, capital-reinvestment strategy typical of early-stage renewable energy ventures.