Anaergia (TSX:ANRG) Is Up 15.7% After Securing Long-Term Biomethane Deal With PepsiCo Mexico

Simply Wall St · 2d ago
  • Anaergia Inc., through its subsidiary Anaergia Technologies, LLC, previously signed a contract with PepsiCo Mexico Foods' Sabritas unit to supply high-efficiency digestion, biogas conditioning, and upgrading systems that will turn about 50,000 tons of organic residuals a year into carbon-negative biomethane for on-site use at a Mexican food production facility.
  • This collaboration not only showcases Anaergia's end-to-end waste-to-energy capabilities but also underlines how industrial customers are using biomethane projects to cut lifecycle emissions and replace fossil natural gas.
  • Next, we’ll examine how securing a long-term biomethane project with PepsiCo Mexico Foods could reshape Anaergia’s investment narrative and risk profile.

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Anaergia Investment Narrative Recap

To own Anaergia, you have to believe that waste-to-energy and renewable gas will keep attracting large, blue-chip customers and supportive policy, while the company turns strong backlog growth into sustainable profits. The PepsiCo Mexico Foods Sabritas contract reinforces contract momentum and Anaergia’s end-to-end offering, but it does not remove the key short term risk around ongoing net losses, negative adjusted EBITDA, and the financing demands of its capital intensive projects.

The Sabritas deal also sits alongside the CAD 43.8 million East County Advanced Water Purification contract in California, which further builds Anaergia’s backlog and underpins revenue visibility over the next few years. Together, these projects highlight the same core catalyst for the stock: a growing base of contracted work with long-term infrastructure customers that, if executed well, could support the company’s path toward more consistent earnings.

Yet despite the positive headline contracts, investors should be aware that Anaergia still faces...

Read the full narrative on Anaergia (it's free!)

Anaergia’s narrative projects CA$299.7 million revenue and CA$20.0 million earnings by 2028.

Uncover how Anaergia's forecasts yield a CA$5.08 fair value, a 87% upside to its current price.

Exploring Other Perspectives

TSX:ANRG 1-Year Stock Price Chart
TSX:ANRG 1-Year Stock Price Chart

Two fair value estimates from the Simply Wall St Community cluster tightly at CA$5.08 per share, showing some individual investors see Anaergia through a very similar lens. You should weigh these views against the company’s ongoing net losses and capital intensive growth model, which together could shape how effectively new contracts like Sabritas translate into long term shareholder returns.

Explore 2 other fair value estimates on Anaergia - why the stock might be worth just CA$5.08!

Build Your Own Anaergia Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Anaergia research is our analysis highlighting 2 key rewards that could impact your investment decision.
  • Our free Anaergia research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Anaergia's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.