Research Notes: Figuring Out Enviva

The ESG farce that shipped its way to an all-time low

Highlights:

• Outside of volatile sectors like biotechnology and regional banking, there are few stocks with the boom-or-bust potential of Enviva (EVA).

• The producer of wood pellets was called an ESG farce and the stock has plunged 88% from May 2022 highs.

• Short sellers continue to take aim. The combination of a leveraged balance sheet and “greenwashing” claims suggest a potential path to zero.

• Yet regulators seem unmoved, and demand isn’t going anywhere.

• Management and execution are clear risks, but EVA could be a ten-bagger if investor confidence returns...