Waga Energy SA (WAGA) AI Stock Analysis

• Market Cap: €538.95M
• Dividend Yield: N/A
• Average Volume (3M): 36.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: 67.34%
• EPS Growth: 4.18%
• Country: FR
• Employees: 219
• Sector: Industrials
• Sector Strength: 92
• Industry: Industrial - Machinery
• EPS (TTM): -0.77
• Shares Outstanding: 24,836,576
• 10 Day Avg. Volume: 14,463
• 30 Day Avg. Volume: 36,486
• PEG Ratio: -3.47
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.34
• 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: €23.60
• Price Target Upside: 7.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: €24.00 ▲(9.59%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.

Waga Energy SA Business Overview & Revenue Model

Company Description

Waga Energy SA designs, builds, and operates landfill gas recovery, upgrading, and grid-injection projects. The company develops WAGABOX, a landfill gas upgrading unit that delivers biomethane that can be injected directly into the gas grid or used as fuel for vehicles. The company was founded in 2015 and is based in Meylan, France.

How the Company Makes Money

Waga Energy makes money primarily by selling biomethane produced from landfill gas using its WAGABOX technology. The company generates revenue through long-term contracts with landfill site operators, where they install and operate WAGABOX units. These contracts often include revenue sharing agreements, where Waga Energy receives a portion of the profits from the sale of biomethane. Additionally, Waga Energy may benefit from government incentives or subsidies for producing renewable energy, as well as from selling carbon credits in regions where such markets exist. Partnerships with energy companies and municipalities also play a crucial role in expanding their operations and increasing revenue streams.

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	19.56M	12.64M	9.83M
Gross Profit	-3.43M	14.32M	11.61M	7.25M	6.25M
EBITDA	-2.88M	-6.64M	-5.36M	-2.50M	1.46M
Net Income	-17.58M	-15.99M	-9.68M	-7.72M	-1.91M
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	35.28M	25.25M
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: 21.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 21.9 is above the 20-day moving average (MA) of 21.77, above the 50-day MA of 18.87, and above the 200-day MA of 15.69, indicating a bullish trend. The MACD of 0.78 indicates Positive momentum. The RSI at 70.01 is Negative, neither overbought nor oversold. The STOCH value of 66.67 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 *	58 Neutral	HK$14.15B	4.41	-3.01%	7.30%	3.67%	-54.16%
WAGA	57 Neutral	€538.95M	―		―	67.34%	4.18%
MPHYF		$5.13M	―	-135.70%	―	―	―
7BZ		€20.18M	―	-12.59%	―	―	―