Descripción de la empresa
374Water Inc. operates within the Industrials sector, specifically focusing on the Pollution & Treatment Controls industry, where it provides proprietary technology designed to convert wet wastes into recoverable resources across the United States. The company's operational scope includes the transformation of diverse waste streams such as sewage sludge, biosolids, food waste, hazardous and non-hazardous waste, and so-called forever chemicals, utilizing its AirSCWO systems to treat these waste streams effectively. In terms of scale, the company holds a market capitalization of $46.57M and reported trailing twelve-month revenue of $215,037, though specific employee count data is not currently available in the provided records. These financial figures indicate that 374Water Inc. functions as a micro-cap enterprise with very limited revenue generation relative to its market valuation, suggesting a position in a niche market where the disparity between enterprise value and actual sales flow highlights a significant premium attached to its specific technology and intellectual property rather than current cash flow operations.
Salud financiera
The company reported trailing twelve-month revenue of $215,037, while net income stood at -$20,975,052, creating a substantial gap that reveals a highly distressed cost structure where expenses and losses far exceed revenue generation. EBITDA for the period was -$20,395,038, indicating that even before interest, taxes, depreciation, and amortization, the core operations are generating significant negative cash equivalents. Free cash flow is reported at -$12,566,757, which signifies a severe lack of financial flexibility and an inability to fund operations or capital expenditures from internal cash flows without external financing. The gross margin is listed at 0.0%, while the operating margin is anomalously high at 496.8% and the profit margin is 0.0%, figures that require careful interpretation given the massive negative net income and suggest accounting adjustments or specific cost allocations that distort traditional margin analysis in the presence of significant non-operating losses. The balance sheet holds $3.20M in cash against $1.38M in debt, resulting in a debt-to-equity ratio of 20.58, which indicates a highly leveraged position relative to equity, despite the absolute dollar amount of debt being lower than cash on hand. The current ratio stands at 1.40, suggesting that the company possesses sufficient current assets to cover its current liabilities, yet this liquidity metric does not mitigate the underlying operational cash burn or the high leverage implied by the debt-to-equity structure. Return on Equity is -189.0% and Return on Assets is -86.4%, metrics that reveal management has failed to generate positive returns on the capital invested in the business over the trailing period, indicating ineffective capital allocation or extreme volatility in earnings that erodes shareholder value.
Evaluación de valoración
The trailing P/E ratio is not available due to the negative earnings, whereas the forward P/E is listed at -44.50, a negative multiple that implies the market is pricing in a recovery or turnaround scenario rather than immediate profitability based on current earnings history. The price-to-book ratio is 6.34, indicating that the market values the company at more than six times its net asset value, which suggests a significant premium attached to the company's intangible assets or future growth potential despite current financial losses. The price-to-sales ratio is 216.56, an exceptionally high multiple relative to the $215,037 in revenue, while the EV/EBITDA stands at -2.19, further confirming that traditional valuation multiples are distorted by the company's negative earnings and cash flow profile. The stock has traded between a 52-week low of $1.60 and a 52-week high of $10.90, placing the current valuation in a wide range relative to recent price extremes and highlighting the significant volatility inherent in small-cap industrial stocks with negative earnings. The beta value is not available, which precludes a direct comparison of price volatility relative to the broader market, but the wide swing between the 52-week high and low of $10.90 and $1.60 itself serves as a proxy for the high risk and price sensitivity of the security.
Growth & Income
Revenue growth year-over-year and earnings growth year-over-year are both listed as not available in the current data, preventing a direct comparison of growth rates between sales and earnings, though the massive gap between revenue of $215,037 and net loss of -$20,975,052 implies that earnings are currently decoupled from top-line performance rather than growing faster or slower in a traditional sense. The company does not pay a dividend, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning that instead of distributing income to shareholders, the company retains all earnings, which are currently negative, to fund its operations or potential future expansion. This non-dividend strategy aligns with the profile of a growth-oriented or distressed technology firm that prioritizes capital retention over income distribution, although the current cash burn of -$12,566,757 limits the practical ability to reinvest in organic growth without external equity financing. Overall, the growth and income profile is characterized by a complete absence of dividend income, undefined historical growth rates, and a financial structure that relies heavily on external capital markets rather than internal cash generation or shareholder returns.