- Even after completing their corporate restructuring during late 2021, it disappointingly seems that the dividends of Enviva are still unsustainable and thus very risky.
- They saw a cash burn just to operate their company during the first quarter of 2022, even after removing the impacts of their temporary working capital movements.
- Even if looking elsewhere, their dividend payments were still more than double their accrual-based distributable cash flow, with their full-year guidance still not sufficient to provide adequate coverage.
- Due to their immense cash outflows, they have to keep issuing equity, but this only makes their oversized dividend payments even more burdensome and thus unsustainable.
- Regardless of how the situation is viewed, their numbers are still not stacking up for their dividends, and thus, I believe that maintaining my sell rating is appropriate.
For further details see:
Enviva: The Numbers Are Still Not Stacking Up For Their Dividends