Enviri Corporation (NVRI): A Bull Case Theory 

We came across a bullish thesis on Enviri Corporation on The Value Road’s Substack. In this article, we will summarize the bulls’ thesis on NVRI. Enviri Corporation’s share was trading at $12.41 as of October 16th. NVRI’s trailing P/E was 143.91 according to Yahoo Finance.

Enviri Inc. (NVRI) has initiated a formal process to explore strategic alternatives aimed at unlocking shareholder value, with a particular focus on its Clean Earth business. While no specific timetable has been set and the company does not plan to provide interim updates, potential options include a tax-efficient sale or spin-off of Clean Earth, a strategic merger with another environmental-services firm, or other value-accretive transactions. These moves are intended to complement, rather than disrupt, the ongoing execution of NVRI’s current business plan.

Enviri’s market capitalization stands at approximately $950 million, with an enterprise value of roughly $2.4 billion, implying an EV/EBITDA multiple of 9.2× and a P/B of 0.8×. A successful separation or sale of Clean Earth could unlock a higher valuation multiple for the business, generate proceeds to reduce leverage, and potentially lift total equity value by 50-100%. Conversely, if the strategic review does not result in a transaction, the company could remain burdened by existing debt levels, leaving valuation largely unchanged.

Overall, NVRI presents a compelling investment case with multiple catalysts: the ongoing review of Clean Earth creates the potential for significant rerating, while the core business continues to generate steady performance. Investors are effectively presented with a risk/reward profile skewed toward upside should management execute a successful divestiture or merger, while downside is limited by the company’s resilient operations and attractive current valuation metrics. The process underscores NVRI’s proactive approach to capital allocation and strategic optimization, positioning the company to capture shareholder value while maintaining operational continuity.

Previously we covered a bullish thesis on Waste Management, Inc. (WM) by Francesco Ferrari in April 2025, which highlighted the company’s consistent alpha generation, low volatility, strong financial performance with 7.2% revenue growth, 9.5% ROIC, and robust margins. The company’s stock price has depreciated approximately by 7.63% since our coverage. The thesis still stands as WM continues to deliver resilient growth and profitability. The Value Road shares a similar approach but emphasizes unlocking shareholder value through strategic alternatives at Enviri Corporation, focusing on divestitures, spin-offs, and mergers to drive rerating.

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Disclosure: None.