Waga Energy SA (WAGA) AI Stock Analysis

• Market Cap: €570.02M
• Dividend Yield: N/A
• Average Volume (3M): 418.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: 27.27%
• EPS Growth: -2.01%
• Country: FR
• Employees: 219
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.48
• Shares Outstanding: 25,676,706
• 10 Day Avg. Volume: 183,064
• 30 Day Avg. Volume: 418,470
• PEG Ratio: 4.20
• Price to Book (P/B): 2.89
• Price to Sales (P/S): 6.80
• P/FCF Ratio: -5.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €25.78
• Price Target Upside: 16.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: €24.00 ▲(8.35% Upside)

The overall stock score of 57 reflects a mixed outlook. The primary strengths lie in the technical analysis, showcasing strong bullish momentum and positive price trends. However, significant financial challenges, including negative profitability and cash flow issues, weigh heavily on the score. The valuation is also concerning, with a negative P/E ratio indicating ongoing losses. Strategic improvements in financial management are critical for enhancing the company's outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective business model, supporting long-term expansion potential.

Proprietary Technology

Proprietary technology like WAGABOX® provides a competitive edge in the renewable energy sector, enabling efficient gas conversion.

Strategic Partnerships

Strategic partnerships enhance operational reach and resource access, crucial for scaling biomethane production and market penetration.

Negative Factors

Profitability Challenges

Persistent losses and cash flow issues can hinder financial stability, requiring strategic improvements for sustainable growth.

Negative Cash Flow

Negative cash flow reflects liquidity strains, potentially limiting investment capacity and operational flexibility in the long term.

Declining Equity Ratio

A declining equity ratio suggests increasing financial risk, potentially affecting the company's ability to secure favorable financing.

Waga Energy SA Business Overview & Revenue Model

Company Description

Waga Energy SA (WAGA) is a French company specializing in the production of renewable natural gas (RNG) from organic waste. The company operates in the renewable energy sector, focusing on the development and implementation of innovative technologies to convert biogas from landfills and wastewater treatment plants into high-quality renewable gas that can be injected into the natural gas grid. WAGA's core services include designing and managing biogas upgrading facilities, as well as providing solutions for sustainable energy production.

How the Company Makes Money

Waga Energy generates revenue primarily through the sale of renewable natural gas produced at its facilities. The company enters into long-term contracts with customers, including utilities and industrial clients, ensuring a steady stream of income from the sale of RNG. Additionally, WAGA earns revenue from the upfront fees associated with the development and construction of biogas upgrading plants, as well as from ongoing operational and maintenance services provided to clients. Significant partnerships with municipalities and waste management companies also enhance its revenue potential by securing a consistent supply of organic waste for gas production.

Waga Energy SA Financial Statement Overview

Summary

Waga Energy SA exhibits strong revenue growth, but profitability and cash flow management present significant challenges. The company faces operational and financial hurdles due to persistent losses and cash outflows. While the balance sheet suggests a reasonable debt position, the declining equity ratio and negative ROE highlight underlying financial instability. Strategic improvements in profitability and cash management are essential for sustained financial health.

Income Statement

Waga Energy SA shows a significant revenue growth over the years, indicating potential for future expansion. However, the company consistently operates at a loss, reflected by negative net profit and gross profit margins. The EBIT and EBITDA margins further accentuate operational inefficiencies, as they remain negative across the periods analyzed. Despite growing revenue, profitability remains a challenge.

Balance Sheet

The balance sheet indicates a moderately leveraged position with a debt-to-equity ratio below 1, suggesting manageable debt levels relative to equity. However, stockholders' equity forms a relatively lower percentage of total assets, indicating potential risk. The company’s equity ratio shows a declining trend, which could impact financial stability if not addressed. Return on Equity (ROE) is negative due to consistent net losses.

Cash Flow

The cash flow situation at Waga Energy SA highlights challenges with negative free cash flow and operating cash flow over the analyzed periods. The negative free cash flow growth rate reflects substantial capital expenditures, which, while potentially beneficial long-term, strain current liquidity. The operating cash flow to net income and free cash flow to net income ratios indicate cash flow management issues, as both remain unfavorable.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.70M	33.26M	19.16M	12.26M	9.46M
Gross Profit	-3.43M	14.32M	11.61M	7.25M	568.00K
EBITDA	-2.88M	-6.64M	-5.36M	-2.36M	1.52M
Net Income	-17.58M	-15.99M	-10.07M	-8.06M	-2.18M
Balance Sheet
Total Assets	295.02M	194.58M	189.17M	169.56M	42.88M
Cash, Cash Equivalents and Short-Term Investments	68.30M	40.27M	91.66M	122.91M	16.00M
Total Debt	115.10M	60.76M	49.55M	38.25M	28.57M
Total Liabilities	160.93M	96.71M	77.15M	51.97M	34.78M
Stockholders Equity	131.23M	95.15M	109.11M	115.91M	6.75M
Cash Flow
Free Cash Flow	-71.21M	-62.08M	-48.33M	-14.02M	-3.23M
Operating Cash Flow	-9.75M	-12.92M	-7.39M	-952.00K	1.57M
Investing Cash Flow	-56.53M	-45.01M	-36.98M	-13.98M	-4.92M
Financing Cash Flow	95.85M	4.97M	13.02M	121.72M	11.79M

Waga Energy SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:WAGA, the sentiment is Positive. The current price of 22.15 is below the 20-day moving average (MA) of 22.20, above the 50-day MA of 21.98, and above the 200-day MA of 18.65, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 51.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:WAGA.

Waga Energy SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WAGA	57 Neutral	€570.02M	-27.12	―	―	27.27%	-2.01%