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ClearSign Combustion (CLIR)
NASDAQ:CLIR
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ClearSign Combustion (CLIR) AI Stock Analysis

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CLIR

ClearSign Combustion

(NASDAQ:CLIR)

Rating:52Neutral
Price Target:
$0.50
▼(-9.09%Downside)
ClearSign Combustion's stock score reflects the company's revenue growth and strategic initiatives, which are overshadowed by profitability challenges and valuation concerns. The strong cash position and increased proposal pipeline provide a positive outlook, but the negative P/E ratio and ongoing net losses weigh heavily on the overall assessment.

ClearSign Combustion (CLIR) vs. SPDR S&P 500 ETF (SPY)

ClearSign Combustion Business Overview & Revenue Model

Company DescriptionClearSign Technologies Corporation designs and develops products and technologies to enhance operational performance, energy efficiency, emission reduction, safety, and overall cost-effectiveness of industrial and commercial systems in the United States and the People's Republic of China. Its ClearSign Core Burner Technology consists of an industrial burner body and a downstream porous ceramic structure or metal flame stabilizing device; ClearSign Core Plug & Play technology provides direct burner replacement for traditional refinery process heaters; and ClearSign Eye Flame Sensor, an electrical flame sensor for industrial applications. The company also provides ClearSign Core Boiler Burner; and ClearSign Core Flaring Burners technologies. It serves energy, institutional, commercial and industrial boiler, chemical, and petrochemical industries. The company was formerly known as ClearSign Combustion Corporation and changed its name ClearSign Technologies Corporation in November 2019. ClearSign Technologies Corporation was incorporated in 2008 and is headquartered in Tulsa, Oklahoma.
How the Company Makes MoneyClearSign Combustion makes money by selling its proprietary combustion and emissions control technologies to industrial clients who require enhanced performance and regulatory compliance in their combustion processes. The company generates revenue through direct sales of its systems, as well as through licensing agreements and partnerships with manufacturers and service providers. ClearSign may also engage in joint ventures or collaborative projects that leverage its technology in new markets or applications. Revenue is influenced by factors such as regulatory changes, demand for cleaner industrial processes, and the adoption of its technology across various industries.

ClearSign Combustion Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q1-2025)
|
% Change Since: -22.54%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted ClearSign's strong cash position and increased proposal pipeline, which indicates a promising future. However, the decline in revenue and increased net loss due to legal costs pose significant challenges. The company's strategic partnerships and product deployments offer potential for recovery and growth.
Q1-2025 Updates
Positive Updates
Strong Cash Position
ClearSign Technologies ended the first quarter of 2025 with approximately $12.8 million in cash and cash equivalents, providing a solid foundation for future operations and growth.
Increased Proposal Pipeline
The number of quotations provided in 2025 has doubled compared to the same period in 2024, and the total value of proposals has increased nearly fivefold.
Promising Orders and Partnerships
ClearSign secured a repeat flare order in the range of $250,000 to $300,000 and is seeing increased traction with Zeeco for co-branding and expanded sales channels.
Process Burner Installations
Two major installations are planned for 2025, including 20 burners at a Los Angeles refinery and 26 burners for a Gulf Coast Chemicals company, marking significant milestones for the company.
ClearSign Eye Sensor Developments
The ClearSign Eye Sensors are set for deployment at a prominent Gulf Coast refinery, with expectations of quick adoption due to their disruptive technology.
Negative Updates
Revenue Decline
The company recognized approximately $400,000 in revenues for the first quarter of 2025 compared to $1.1 million for the same period in 2024, largely due to a decrease in process burner shipments.
Increased Legal Costs
ClearSign incurred $581,000 in legal fees for the first quarter of 2025 related to a regulatory inquiry by the SEC and a board special committee response to stockholder submissions.
Net Loss Increase
The net loss increased by approximately $1 million compared to the same quarter in 2024, driven by decreased sales volume and legal expenses.
Company Guidance
During the ClearSign Technologies first quarter 2025 conference call, the company provided several updates on their financial performance and strategic initiatives. The company reported a decrease in revenues to approximately $400,000 compared to $1.1 million for the same period in 2024, largely due to a drop in process burner shipments. The net loss increased by about $1 million, influenced by decreased sales volume and $581,000 in legal fees. Operating cash usage remained relatively stable, with $1.1 million used in the first quarter. ClearSign ended the quarter with $12.8 million in cash and cash equivalents. The company also discussed their strategic focus on expanding their market presence through diversification of product lines and sales channels, including a new order for flare burners valued between $250,000 and $300,000, and ongoing collaboration with Zeeco to enhance their sales reach. The pipeline of sales proposals showed strong growth, with the total value up nearly five times compared to last year. Additionally, the company is actively engaged in expanding their M-series burners for midstream applications and increasing the commercialization of their ClearSign Eye sensors.

ClearSign Combustion Financial Statement Overview

Summary
ClearSign Combustion demonstrates revenue growth but struggles with profitability and cash flow. The balance sheet is stable with low leverage, but negative net income and cash flows pose risks.
Income Statement
45
Neutral
ClearSign Combustion has shown some improvement in revenue growth over the past year, increasing from $2.4 million to $3.6 million. However, the company continues to face significant challenges with negative EBIT and net income, reflecting ongoing profitability issues. The gross profit margin is positive, but the net profit margin remains negative, indicating that the company is struggling to turn revenue growth into profit.
Balance Sheet
60
Neutral
The company maintains a relatively strong equity position with an equity ratio of roughly 86.5%. The debt-to-equity ratio is low, suggesting conservative leverage. However, the negative net income impacts return on equity negatively, which remains a concern for profitability. Overall, the balance sheet shows stability with manageable debt levels.
Cash Flow
50
Neutral
Operating cash flow remains negative, raising concerns about the company's ability to generate sufficient cash from operations. Free cash flow is also negative, despite positive financing cash flow. The free cash flow to net income ratio is unfavorable, indicating ongoing cash flow challenges despite revenue growth.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.60M2.40M374.00K607.00K0.00
Gross Profit1.12M817.00K116.00K-452.00K-279.00K
EBITDA-5.55M-4.77M-5.47M-7.63M-6.72M
Net Income-5.30M-5.19M-5.40M-7.89M-6.84M
Balance Sheet
Total Assets15.92M7.62M10.93M9.36M11.12M
Cash, Cash Equivalents and Short-Term Investments14.04M5.68M9.06M7.61M8.82M
Total Debt188.00K243.00K359.00K555.00K669.00K
Total Liabilities2.15M2.43M1.37M1.08M1.58M
Stockholders Equity13.76M5.19M9.55M8.28M9.54M
Cash Flow
Free Cash Flow-4.59M-3.43M-5.16M-6.92M-6.16M
Operating Cash Flow-4.37M-3.23M-4.99M-6.71M-5.96M
Investing Cash Flow-218.00K2.49M-2.69M-213.00K-194.00K
Financing Cash Flow12.95M-15.00K6.54M5.69M6.43M

ClearSign Combustion Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.55
Price Trends
50DMA
0.59
Negative
100DMA
0.62
Negative
200DMA
0.83
Negative
Market Momentum
MACD
<0.01
Negative
RSI
43.25
Neutral
STOCH
6.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLIR, the sentiment is Negative. The current price of 0.55 is below the 20-day moving average (MA) of 0.56, below the 50-day MA of 0.59, and below the 200-day MA of 0.83, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 43.25 is Neutral, neither overbought nor oversold. The STOCH value of 6.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLIR.

ClearSign Combustion Risk Analysis

ClearSign Combustion disclosed 37 risk factors in its most recent earnings report. ClearSign Combustion reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

ClearSign Combustion Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$9.25M12.784.68%-14.25%-59.84%
64
Neutral
$10.61B16.566.55%2.15%2.87%-30.79%
58
Neutral
$19.12M-69.66%-17.77%0.86%
55
Neutral
$79.10M-6.95%7.30%-247.48%
52
Neutral
$28.57M-75.96%10.88%3.57%
42
Neutral
$19.48M-62.68%19.09%3.50%
39
Underperform
$27.20M-110.71%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CLIR
ClearSign Combustion
0.55
-0.19
-25.68%
CLWT
Euro Tech Holdings Company
1.22
-0.27
-18.12%
FTEK
Fuel Tech
2.80
1.83
188.66%
LIQT
LiqTech International
1.98
-0.38
-16.10%
SCWO
374Water
0.22
-0.87
-79.82%
TOMZ
TOMI Environmental Solutions
0.97
0.29
42.65%

ClearSign Combustion Corporate Events

Executive/Board ChangesShareholder Meetings
ClearSign Combustion Holds Annual Stockholders Meeting
Neutral
Jul 28, 2025

On July 25, 2025, ClearSign Technologies Corporation held its annual meeting of stockholders where 70.82% of the voting power was represented. During the meeting, all six nominees for the board of directors were re-elected, and the board size was reduced from seven to six following the decision of former director David M. Maley not to stand for re-election. Additionally, stockholders approved the appointment of BPM CPA LLP as the independent registered public accounting firm for 2025 and endorsed the compensation for the company’s named executive officers.

The most recent analyst rating on (CLIR) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on ClearSign Combustion stock, see the CLIR Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
ClearSign Combustion Enters New ATM Offering Agreement
Neutral
Jul 18, 2025

On July 17, 2025, ClearSign Technologies Corporation entered into an At The Market Offering Agreement with H.C. Wainwright & Co., LLC, allowing the company to sell shares of its common stock up to $10,390,000. The proceeds from this offering are intended for working capital, research and development, marketing, sales, and general corporate purposes. This move follows the termination of a previous agreement with Virtu Americas LLC on July 12, 2025, which had a similar purpose but a lower aggregate offering price of $8,700,000.

The most recent analyst rating on (CLIR) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on ClearSign Combustion stock, see the CLIR Stock Forecast page.

Executive/Board Changes
ClearSign Combustion Updates Board Committees
Neutral
Jul 11, 2025

ClearSign Technologies Corporation has announced changes in the composition of its board committees, effective June 27, 2025. These changes involve the appointment of new members to the Audit and Risk Committee, Human Capital and Compensation Committee, and Nominating and Corporate Governance Committee, which may impact the company’s governance and strategic direction.

The most recent analyst rating on (CLIR) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on ClearSign Combustion stock, see the CLIR Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
ClearSign Combustion Expands Board with New Appointments
Positive
May 27, 2025

On May 22, 2025, ClearSign Technologies Corporation entered into cooperation agreements with Richard D. Clarkson and Anthony DiGiandomenico, leading to the withdrawal of previous director nomination notices and the expansion of the company’s board from five to seven members. This strategic move, announced on May 27, 2025, aims to strengthen ClearSign’s board with the appointment of Anthony DiGiandomenico and Lou Basenese, who bring extensive experience in capital markets and industry connections, enhancing the company’s governance and strategic direction. Additionally, board member David M. Maley announced he will not seek re-election, leaving the board to decide on a potential replacement.

The most recent analyst rating on (CLIR) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on ClearSign Combustion stock, see the CLIR Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
ClearSign Combustion Reports Q1 2025 Results and Innovations
Positive
May 23, 2025

On May 21, 2025, ClearSign Technologies Corporation announced its first-quarter 2025 operational results, highlighting significant developments such as the launch of co-branded process burner lines with Zeeco and the introduction of the M Series burners for the midstream market. The company also secured commitments for the first commercial installation of its ‘ClearSign Eye’ Sensor at a major refinery and received an engineering order for a low emissions flare burner in California. These advancements indicate ClearSign’s strategic expansion in product offerings and market presence, potentially strengthening its industry positioning and stakeholder interest.

The most recent analyst rating on (CLIR) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on ClearSign Combustion stock, see the CLIR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2025