Company Overview
Greenwave Technology Solutions, Inc. operates metal recycling facilities across Virginia, North Carolina, and Ohio through its subsidiary, Empire Services, Inc., providing services in the Scrap Metal Recycling, Hauling, and Other segments. The company functions within the Industrials sector, specifically the Waste Management industry, where it focuses on collecting, classifying, and processing appliances and other scrap materials. As of the latest data, the company holds a market capitalization of $2.82M and generates annual revenue of $39.47M while employing 180 individuals. These valuation and revenue figures indicate that the company is a micro-cap entity with a relatively small market presence compared to larger peers in the waste management space. The low market cap combined with the specific geographic footprint suggests a highly localized operation rather than a diversified national utility, which often impacts liquidity and analyst coverage. The scale of the business, evidenced by the employee count and revenue, reflects a mid-sized operational capability within the niche metal recycling market.
Financial Health
The company reported revenue of $39.47M over the trailing twelve months, yet it recorded a net income of $-36,241,480 and an EBITDA of $-10,421,474, highlighting a significant divergence between top-line activity and bottom-line profitability. The substantial gap between the $39.47M revenue and the negative net income reveals a cost structure where operating expenses and losses far exceed the gross profits generated from sales. Free cash flow stands at $-8,379,901, which indicates that the company is currently burning cash and lacks the immediate financial flexibility to fund growth or weather downturns without external capital injection. Profitability is further eroded by a profit margin of -84.2%, while the gross margin sits at 19.5%, suggesting that cost of goods sold absorbs most revenue before other expenses are applied. The operating margin of -41.2% demonstrates that core business operations are unprofitable, a critical signal for investors assessing operational efficiency. On the balance sheet, the company holds $1.45M in cash against $14.06M in debt, resulting in a debt-to-equity ratio of 43.02, which signifies a highly leveraged position reliant on creditor support. The current ratio of 0.34 further underscores severe short-term liquidity constraints, indicating that current assets are insufficient to cover current liabilities without refinancing or asset liquidation. Return on Equity is reported at -79.2% and Return on Assets at -18.3%, metrics that reveal management has been ineffective at generating positive returns on the capital invested by shareholders and creditors.
Valuation Assessment
The trailing P/E ratio is listed as 0.02, while the forward P/E is N/A, implying that the market cannot value future earnings based on current financial performance due to significant losses. A price-to-book ratio of 0.07 indicates that the stock trades at a substantial discount to its book value, often a characteristic of distressed or turnaround situations where the market assigns little value to the company's assets. The price-to-sales ratio is also 0.07, and the EV/EBITDA stands at -1.48, suggesting that traditional multiple-based valuation models are less applicable given the negative earnings and the specific nature of the company's financial distress. The stock has traded between a 52-week high of $34.43 and a 52-week low of $3.24, meaning the current price sits significantly below the recent highs, reflecting a prolonged period of underperformance. With a beta of 0.03, the stock exhibits extremely low volatility relative to the broader market, behaving almost like a risk-free asset in terms of price movement despite its fundamental financial struggles. This low beta suggests that the stock price is decoupled from general market swings, likely due to the limited float and lack of institutional ownership common in micro-cap distressed stocks.
Growth & Income
Revenue growth year-over-year is reported at 49.0%, whereas earnings growth is N/A due to the company's consistent net losses, indicating that top-line expansion is not yet translating into profitability. Since the company does not pay dividends, the dividend yield is N/A and the payout ratio is 0.0%, meaning the company reinvests its limited cash flow into operations rather than distributing income to shareholders. The revenue growth rate of 49.0% suggests that the underlying demand for scrap metal recycling services is increasing, potentially driven by macroeconomic factors or regulatory changes in the waste management sector. Overall, the growth and income profile presents a dichotomy of strong top-line expansion paired with deep structural losses and no income generation for investors.