Is Aqua Metals a Good Investment Decision Based on Facts

Aqua Metals is a company that has been gaining attention in the investment world, but is it a good investment decision? Let's take a closer look at the facts.

Aqua Metals' innovative approach to recycling lead is a significant advantage. The company's patented AquaRefine technology allows for the efficient and environmentally friendly recycling of lead, which is a valuable resource.

The company has already made significant progress in its efforts to scale up production, with a lead-acid battery recycling plant in California that has been operational since 2017. This plant has a capacity to process 20 million pounds of lead per year.

Investors are also drawn to Aqua Metals' strong financials, with a revenue growth rate of 50% in 2020.

As of October 17, 2025, Aqua Metals, Inc. had a market capitalization of $20.5 million, ranking it in the 9th percentile of companies in the Commercial Services & Supplies industry.

Aqua Metals, Inc. is struggling with negative earnings over the last 12 trailing months, which makes it difficult to determine a meaningful P/E ratio.

With a trailing 12-month revenue of $0.0 million and no profit margin, Aqua Metals, Inc. is not generating significant revenue or profit.

There are no analysts providing consensus earnings estimates for the current fiscal year, making it hard to predict the company's future performance.

Aqua Metals, Inc. does not currently pay a dividend, which may be a concern for income-seeking investors.

The company's year-over-year quarterly sales growth is not specified, but it's clear that Aqua Metals, Inc. is facing significant challenges in terms of revenue and profitability.

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Aqua Metals' stock value grade is not meaningful, which is a concern for investors looking for undervalued stocks.

Its sector median price-to-sales ratio is 1.43, which is a relatively high number.

Aqua Metals has a very strong momentum score of 95, indicating anomalously high rates of return.

Here are the metrics that contribute to its momentum score:

Aqua Metals' beta against the Dow Jones is 1.16, indicating that its stock price tends to move more than the overall market.

A Momentum Score is a key metric used to identify stocks with anomalously high rates of return. Stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Momentum is based on the price change of a stock over a specified period relative to all other stocks. This means that a stock's price change is compared to the price change of other stocks in the same sector.

Aqua Metals, Inc. has a Momentum Score of 95, which is considered Very Strong. This score is based on the weighted relative strength over the trailing four quarters.

The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40%, and each of the three previous quarters are given a weighting of 20%.

Here's a breakdown of Aqua Metals, Inc.'s Relative Price Strength for each quarter:

Aqua Metals, Inc.'s weighted four-quarter relative strength rank is 95, which is a Very Strong score.

In investment analysis, Greeks are a set of metrics used to measure the sensitivity of an investment's performance to changes in various market factors.

The Alpha over Dow Jones, also known as α, is a measure of an investment's excess return compared to the Dow Jones index. In the case of Aqua Metals, their α is 3.83.

Beta against Dow Jones, or β, measures an investment's volatility relative to the Dow Jones index. Aqua Metals' β is 1.16, indicating that their investment is more volatile than the Dow Jones index.

Overall volatility, denoted by σ, measures the standard deviation of an investment's returns. Aqua Metals' σ is 29.14, indicating a relatively high level of volatility.

The Information Ratio, or Ir, measures an investment's excess return relative to its volatility. Aqua Metals' Ir is 0.13, suggesting that their investment has generated returns that are not entirely justified by its level of risk.

Here's a summary of the Greeks for Aqua Metals:

Aqua Metals' fundamentals are a mixed bag. The company has a negative Return On Equity of -1.83, which is significantly worse than the peer average of -0.31.

Its Current Valuation of $9.42 million is a fraction of the peer average of $16.62 billion, indicating a potentially undervalued stock. However, the company's Shares Outstanding of 2.05 million are also significantly lower than the peer average of 571.82 million, which could make it harder to buy and sell the stock.

Aqua Metals' Price To Earnings ratio is a staggering -3.23, indicating that the company is currently trading at a loss. In contrast, the peer average is a relatively healthy 28.72. This suggests that investors may be expecting a turnaround in the company's fortunes, but it's hard to see how the company could turn things around given its current financials.

Here are some key statistics that highlight the differences between Aqua Metals and its peers:

Overall, while Aqua Metals may be an interesting investment opportunity, its fundamental analysis suggests that it's a high-risk, high-reward play.

Aqua Metals, Inc. has a negative Return On Equity of -1.83, which is lower than the peer average of -0.31.

The company's Current Valuation is $9.42 million, significantly lower than the peer average of $16.62 billion.

Aqua Metals, Inc. has 2.05 million Shares Outstanding, which is much lower than the peer average of 571.82 million.

Insiders own 16.64% of the company's Shares, which is higher than the peer average of 10.09%.

Institutions own 6.30% of the company's Shares, which is lower than the peer average of 39.21%.

The company has 124.96 thousand Shares Shorted, which is much lower than the peer average of 4.71 million.

Aqua Metals, Inc.'s Price To Earning is -3.23, which is significantly lower than the peer average of 28.72.

The company's Price To Book is 2.10, which is lower than the peer average of 9.51.

Aqua Metals, Inc.'s Price To Sales is 865.53, which is much higher than the peer average of 11.42.

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The company's Gross Profit is -$4.13 million, which is significantly lower than the peer average of $27.38 billion.

Aqua Metals, Inc.'s EBITDA is -$22.7 million, which is lower than the peer average of $3.9 billion.

The company's Net Income is -$24.55 million, which is lower than the peer average of $570.98 million.

Aqua Metals, Inc. has $6.42 million in Cash And Equivalents, which is much lower than the peer average of $2.7 billion.

The company's Cash Per Share is $0.08, which is lower than the peer average of $5.01.

Aqua Metals, Inc.'s Total Debt is $4.27 million, which is much lower than the peer average of $5.32 billion.

The company's Debt To Equity is 0.03%, which is lower than the peer average of 48.70%.

Aqua Metals, Inc.'s Current Ratio is 6.86, which is much higher than the peer average of 2.16.

The company's Book Value Per Share is $4.98, which is higher than the peer average of $1.93 thousand.

Aqua Metals, Inc.'s Cash Flow From Operations is -$13.63 million, which is lower than the peer average of $971.22 million.

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The company's Short Ratio is 0.05, which is much lower than the peer average of 4.00.

Aqua Metals, Inc.'s Earnings Per Share is -$35.48, which is significantly lower than the peer average of $3.12.

The company's Price To Earnings To Growth is -0.26, which is lower than the peer average of 4.89.

Aqua Metals, Inc.'s Target Price is $7.0, which is the only value available for this metric.

The company has 11 employees, which is much lower than the peer average of 18.84 thousand.

Aqua Metals, Inc.'s Beta is 0.4, which is higher than the peer average of -0.15.

The company's Market Capitalization is $29.91 million, which is much lower than the peer average of $19.03 billion.

Aqua Metals, Inc.'s Total Asset is $26.36 million, which is lower than the peer average of $29.47 billion.

The company's Retained Earnings is -$247.77 million, which is lower than the peer average of $9.33 billion.

Aqua Metals, Inc.'s Working Capital is -$3.54 million, which is lower than the peer average of $1.48 billion.

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The company's Current Asset is $31.95 million, which is lower than the peer average of $9.34 billion.

Aqua Metals, Inc.'s Current Liabilities is $3.32 million, which is lower than the peer average of $7.9 billion.

The company's Net Asset is $26.36 million, which is the only value available for this metric.

Growth Grade is a crucial aspect of fundamental analysis, as it helps investors identify companies with strong, consistent, and prolonged growth.

A Growth Score is computed by adding three individual components: consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations. These components are then ranked against the entire stock universe to arrive at a company's Growth Score.

The Growth Score is used to assign a letter grade, with companies in the bottom 20% receiving a Growth Grade of F, considered Very Weak, and those in the top 20% receiving an A grade, considered Very Strong.

Aqua Metals, Inc. does not have a meaningful Growth Score, which suggests that the company's growth is not strong or consistent.

In general, a company with a high Growth Score is more likely to have a strong growth potential in the future.

To determine if Aqua Metals, Inc. is a good investment, you should evaluate its grades and compare it to its competitors in the Commercial Services & Supplies industry.

Aqua Metals, Inc. has a Momentum Grade of A, which suggests it has a strong short-term performance. You can review the table below to see how Aqua Metals, Inc. stock stands up against its competitors.

You can use AAII's expansive and robust screening tools, like A+ Investor, to help you whittle down investment decisions and find stocks that meet your needs.

When evaluating whether to buy a stock, it's essential to consider various factors. The grades given to a stock can provide valuable insights. Aqua Metals, Inc. stock has a Momentum Grade of A, which is a strong indicator of its performance.

To make an informed decision, compare the stock to its competitors in the same industry. The table below shows how Aqua Metals, Inc. stock stands up against its competitors in the Commercial Services & Supplies industry.

Reviewing the table, you can see that the market capitalization of Aqua Metals, Inc. is not significantly different from its competitors. However, it's essential to consider other factors such as the company's financial reports and performance metrics.

Be cautious with Aqua Metals as it's considered way too risky for a 90-day horizon.

A high likelihood of financial distress in the next 2 years is a red flag for investors.

Aqua Metals has a net loss of $24.55 million for the year, with a loss before overhead, payroll, taxes, and interest of $4.13 million.

The company has a cash-per-share (CPS) ratio of 0.08, indicating a relatively low cash position.

Aqua Metals has a positive cash flow from operations of $13.63 million, but this is not enough to offset its losses.

About 17.0% of the company shares are held by company insiders, which may be a positive sign.

Here's a summary of Aqua Metals' financial situation:

Companies can invest in growth by allocating a portion of their profits towards expansion. This can include investing in new technologies, hiring more staff, or entering new markets.

A key strategy for growth investing is to focus on high-growth industries, such as the tech sector, where companies like Google and Amazon have seen tremendous growth.

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Investing in research and development is also crucial for growth, as it allows companies to stay ahead of the competition and innovate new products and services.

By investing in growth, companies can increase their revenue and market share, leading to long-term financial stability and success.

For example, companies like Microsoft and Facebook have invested heavily in research and development, leading to significant growth and expansion.

Aqua Metals' financial performance has been a topic of interest for investors. The company has reported negative earnings in most quarters since 2017, with some exceptions.

Their revenue has been relatively steady, with some fluctuations. For instance, in 2020, their revenue was $3 million in the second quarter, $4 million in the third quarter, and $5 million in the fourth quarter.

A closer look at their cash flow reveals some concerning trends. In 2020, their free cash flow was negative, ranging from -22 million to -36 million dollars in different quarters. This suggests that the company may be struggling to generate cash from its operations.

Here's a breakdown of their cash flow for the past few years:

It's worth noting that their cash burn rate has been a concern for investors, with some quarters showing a negative cash flow of over $40 million.

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Returns Distribution Density is a crucial aspect of understanding a company's financial performance. The data provides insights into the potential risks and rewards of investing in a particular stock.

The mean return of Aqua Metals is 3.90, which indicates a relatively stable performance over time. This suggests that the company's financials have been consistent, but not spectacular.

Value At Risk (VaR) is a measure of the potential loss in a portfolio over a specific time period, with Aqua Metals' VaR standing at -12.28. This means that there's a 1% chance of the company's stock price falling by this amount or more in a given year.

The potential upside of Aqua Metals' stock is substantial, with a potential gain of 44.94. This is a significant opportunity for investors, but it also comes with risks.

The standard deviation of Aqua Metals' returns is 29.14, which indicates a high level of volatility. This means that the company's stock price can fluctuate significantly over time, making it a riskier investment.

As we dive into the financial performance of Aqua Metals (NASDAQ:AQMS), let's take a closer look at their company financial status.

Their cash burn rate is a significant concern, with a recent reading of -$14 million. This is based on the company's most recent financial data, which was last updated on October 17, 2025.

The company's revenue has been steadily increasing over the years, with a notable jump from $0 to $4 million between 2018 and 2019. This growth is reflected in their annual earnings, which have also seen an improvement.

Here's a breakdown of their revenue and earnings over the years:

Despite the growth in revenue, the company's free cash flow has been negative in most quarters, with a recent reading of -$32 million. This has raised concerns about their ability to sustain their operations.

Their cash from operations has also been a concern, with a recent reading of -$17 million. This is based on the company's financial data, which was last updated on October 17, 2025.

Overall, Aqua Metals' financial performance is a mixed bag, with some positive trends and significant concerns about their cash burn rate and free cash flow.

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Aqua Metals has made significant progress in developing clean, domestic battery recycling solutions. The company's proprietary Li AquaRefining technology was showcased during a facility tour that attracted over 100 industry leaders.

The event was held in conjunction with the NAATBatt International Recycling Workshop and demonstrated the company's operational pilot facility. Notable attendees included representatives from Ford and General Motors.

Aqua Metals' ability to attract major automotive companies and industry leaders is a testament to the potential of its recycling technology.

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The CFO of Aqua Metals has been quite active, exercising options and selling a significant amount of stock worth US$185k.

This recent stock sale is a notable event, and it's worth noting that the CFO's decision to sell stock is a common practice among executives to diversify their portfolios and manage risk.

The exact date of the stock sale is not specified in the article, but it's clear that it's a significant transaction that affects the company's financials.

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Aqua Metals hosted a facility tour at the NAATBatt Lithium Battery Recycling Workshop VIII, showcasing its proprietary AquaRefining technology.

The tour took place on July 31, 2025, and was part of the Eighth Annual Workshop on Lithium Battery Recycling and Lifecycle Management.

Over 100 industry leaders from major automotive companies, battery manufacturers, and material suppliers attended the event.

Representatives from Ford and General Motors were among the notable attendees.

Aqua Metals' Innovation Center and pilot facility, located in the Tahoe-Reno Industrial Center, were the main attractions of the tour.

The facility has been operational for over two and a half years, with over 4,000 hours of operational runtime accumulated.

Aqua Metals' proprietary AquaRefining technology was showcased as an alternative to traditional hydro-based recycling processes.

This technology aims to deliver improved economics, worker safety, and environmental performance while supporting domestic critical minerals processing.

The tour highlighted Aqua Metals' progress in developing clean, domestic battery recycling solutions.

Aqua Metals' facility tour demonstrated the company's operational pilot facility and its ability to produce battery-grade lithium carbonate, nickel, and cobalt products at commercial pilot scale.

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