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ClearSign Combustion (CLIR)
NASDAQ:CLIR
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ClearSign Combustion
(NASDAQ:CLIR)
Rating:55Neutral
Price Target:
$0.50
▼(-23.08%Downside)
ClearSign Combustion (CLIR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.13M
Dividend YieldN/A
Average Volume (3M)62.63K
Price to Earnings (P/E)―
Beta (1Y)2.17
Revenue Growth10.88%
EPS Growth3.57%
CountryUS
Employees18
SectorIndustrials
Sector Strength93
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-0.04
Shares Outstanding52,422,530
10 Day Avg. Volume61,015
30 Day Avg. Volume62,627
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)3.37
Price to Sales (P/S)0.00
P/FCF Ratio-8.29
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue1.96
Enterprise Value/Gross Profit29.63
Enterprise Value/Ebitda-1.17
Forecast
1Y Price Target
$2.00Price Target Upside207.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
ClearSign Combustion Business Overview & Revenue Model
Company DescriptionClearSign Technologies Corporation (CLIR) is a company focused on improving energy efficiency and emissions control within the combustion industry. Operating primarily in the environmental technology sector, ClearSign develops and markets innovative combustion systems and technologies that enhance the performance of industrial and commercial combustion applications. The company's core products are designed to optimize combustion processes, reduce emissions, and improve overall operational efficiency for various industries, including oil and gas, petrochemical, and power generation.
How the Company Makes MoneyClearSign makes money by selling its proprietary combustion technology solutions and related services to industrial clients across multiple sectors. The company's revenue model primarily relies on the sale and licensing of its technology, which includes the ClearSign Core™ and ClearSign Eye™ systems, designed to enhance the combustion process and reduce harmful emissions. Additionally, ClearSign may generate revenue through partnerships and collaborations with industry leaders, leveraging its technology to create integrated solutions for its clients. The company also benefits from regulatory trends and mandates aimed at reducing industrial emissions, which can drive demand for its products and services.
ClearSign Combustion Earnings Call Summary
Earnings Call Date:May 21, 2025
(Q1-2025)
| % Change Since: -8.45%|
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 shows revenue growth but continues to face significant challenges with profitability and cash flow generation. While the balance sheet remains stable with low leverage, ongoing negative net income and cash flows pose risks to long-term sustainability. The company needs to focus on improving operational efficiency and profitability to leverage its growth potential.Income Statement
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.45
Neutral
Balance Sheet
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.60
Neutral
Cash Flow
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.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.90M | 3.60M | 2.40M | 374.00K | 607.00K | 0.00 | Gross Profit |
| 877.00K | 1.12M | 817.00K | 116.00K | -452.00K | -279.00K | EBIT |
| -7.49M | -6.49M | -5.98M | -5.88M | -8.14M | -6.93M | EBITDA |
| -6.69M | -5.55M | -5.68M | -5.47M | -7.63M | -6.72M | Net Income Common Stockholders |
| -6.27M | -5.30M | -5.19M | -5.40M | -7.89M | -6.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 12.87M | 14.04M | 5.68M | 9.06M | 7.61M | 8.82M | Total Assets |
| 14.53M | 15.92M | 7.62M | 10.93M | 9.36M | 11.12M | Total Debt |
| 166.00K | 188.00K | 243.00K | 359.00K | 555.00K | 669.00K | Net Debt |
| -12.70M | -13.85M | -5.44M | -6.09M | -7.05M | -8.15M | Total Liabilities |
| 2.49M | 2.15M | 2.43M | 1.37M | 1.08M | 1.58M | Stockholders Equity |
| 12.04M | 13.76M | 5.19M | 9.55M | 8.28M | 9.54M |
| Cash Flow | Free Cash Flow | ||||
| -4.67M | -4.59M | -3.43M | -5.16M | -6.92M | -6.16M | Operating Cash Flow |
| -4.48M | -4.37M | -3.23M | -4.99M | -6.71M | -5.96M | Investing Cash Flow |
| -225.00K | -218.00K | 2.49M | -2.69M | -213.00K | -194.00K | Financing Cash Flow |
| 12.95M | 12.95M | -15.00K | 6.54M | 5.69M | 6.43M |
ClearSign Combustion Technical Analysis
Negative
0.65
Price Trends
0.62
Negative
0.81
Negative
0.87
Negative
Market Momentum
<0.01
Positive
47.14
Neutral
44.59
Neutral
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 0.65 is above the 20-day moving average (MA) of 0.63, above the 50-day MA of 0.62, and below the 200-day MA of 0.87, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 44.59 is Neutral, 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 3 New Risks
1.
You may experience future dilution as a result of issuance of the Warrant Shares, future equity offerings by us and other issuances of our common stock or other securities. In addition, the issuance of the Warrant Shares, to the extent the Warrants are exercisable, and future equity offerings and other issuances of our common stock or other securities may adversely affect our common stock price. Q3, 2024
2.
If we fail to comply with Nasdaq's continued minimum closing bid requirements by April 28, 2025 or other requirements for continued listing, including stockholder equity requirements, our common stock may be delisted and the price of our common stock and our ability to access the capital markets could be negatively impacted. Q3, 2024
3.
There may be future sales of our common stock, or a perception that these sales could occur, which events could cause the price of our common stock to decline. Q3, 2024
ClearSign Combustion Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $4.49B | 12.28 | 5.32% | 248.53% | 4.08% | -12.00% | |
65 Neutral | $8.87M | 12.51 | 4.68% | ― | -14.25% | -59.84% | |
56 Neutral | $50.47M | ― | -6.95% | ― | 7.30% | -247.48% | |
55 Neutral | $33.13M | ― | -75.96% | ― | 10.88% | 3.57% | |
48 Neutral | $23.02M | ― | -62.68% | ― | 19.09% | 3.50% | |
47 Neutral | $17.02M | ― | -69.66% | ― | -17.77% | 0.86% | |
39 Underperform | $61.66M | ― | -110.71% | ― | ― | ― |
* Industrials Sector Average
Performance Comparison
CLIR
ClearSign Combustion
0.65
-0.15
-18.75%
CLWT
Euro Tech Holdings Company
1.19
-0.37
-23.72%
FTEK
Fuel Tech
1.74
0.66
61.11%
LIQT
LiqTech International
1.67
-0.89
-34.77%
SCWO
374Water
0.40
-0.80
-66.67%
TOMZ
TOMI Environmental Solutions
1.14
0.20
21.28%
ClearSign Combustion Corporate Events
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.
Business Operations and StrategyFinancial Disclosures
ClearSign Combustion Reports Record Annual Revenue Growth
Positive
Apr 4, 2025
On April 2, 2025, ClearSign Technologies Corporation announced record annual revenue of $3.6 million for the year ended December 31, 2024, driven by significant orders for process and boiler burners. The company is expanding its market presence through collaborations, such as the co-branded burner line with Zeeco, and is actively enhancing its product offerings to increase its market scope. Recent strategic developments include a multi-heater project in Texas, installation of ClearSign Eye sensors in a Gulf Coast refinery, and new burner orders for power generation customers in Oklahoma and Missouri. These achievements are expected to positively impact ClearSign’s future growth and industry positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.