AFC Energy (AFC) AI Stock Analysis

• Market Cap: £130.06M
• Dividend Yield: N/A
• Average Volume (3M): 5.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: 732.03%
• EPS Growth: 12.60%
• Country: UK
• Employees: 136
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.01
• Shares Outstanding: 1,132,966,900
• 10 Day Avg. Volume: 5,283,526
• 30 Day Avg. Volume: 5,324,297
• PEG Ratio: 0.62
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 16.00
• P/FCF Ratio: -2.43
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: 11.00p ▲(7.84% Upside)

AFC Energy's stock score is primarily impacted by its financial performance challenges, particularly in profitability and cash flow. The technical analysis shows positive momentum, but valuation concerns due to a negative P/E ratio and lack of dividend yield weigh on the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for AFC's products, suggesting potential for future market expansion and increased sales.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability, enabling AFC to invest in growth opportunities without excessive risk.

Industry Position

Positioning in the clean energy sector aligns with global trends towards sustainability, offering long-term growth potential as demand for renewable energy solutions increases.

Negative Factors

Profitability Challenges

Ongoing profitability issues indicate operational inefficiencies, which could hinder AFC's ability to reinvest in the business and sustain growth.

Cash Flow Issues

Negative cash flow limits AFC's financial flexibility, potentially impacting its ability to fund operations and invest in future growth initiatives.

Operational Inefficiencies

Negative EBIT and EBITDA margins suggest inefficiencies in operations, which could affect AFC's competitiveness and long-term profitability.

AFC Energy Business Overview & Revenue Model

Company Description

AFC Energy plc engages in the development of alkaline fuel cell technology and allied equipment for the generation of clean energy in the United Kingdom. The company offers HydroX-Cell(L), an alkaline fuel cell module; HydroX-Cell(S); and AlkaMem, an anionic exchange membrane technology for alkaline water electrolysis, alkaline fuel cells, fuel synthesis, electrodialysis, desalination, acid remediation, salt water batteries, and REDOX flow batteries applications. It also provides auxiliary equipment, such as ammonia crackers, water electrolyzes, invertors, battery and fuel storage products, and battery management systems. The company sells its products for industrial applications, such as mobility, construction and temporary power, maritime, data centres, and rail. The company was incorporated in 2006 and is headquartered in Cranleigh, the United Kingdom.

How the Company Makes Money

AFC Energy generates revenue primarily through the sale and licensing of its fuel cell technology and systems. The company offers its products to a range of sectors, including transportation, industrial, and commercial markets. Key revenue streams include product sales, long-term contracts for fuel cell installations, and partnerships with companies involved in hydrogen production and distribution. Additionally, AFC may benefit from government grants and incentives aimed at promoting clean energy technologies, which can further enhance its financial performance. Strategic collaborations with industry partners also play a significant role in expanding AFC's market reach and driving revenue growth.

AFC Energy Financial Statement Overview

Summary

AFC Energy is experiencing revenue growth but continues to struggle with profitability and cash flow generation. The balance sheet is strong with low leverage, but the inability to convert revenues into profit and cash poses a significant challenge.

Income Statement

AFC Energy's revenue growth is notable, with a significant increase from the previous year, although it remains relatively low overall. However, the company continues to experience negative gross and net profit margins, indicating ongoing profitability challenges. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company maintains a strong equity position, evidenced by a high equity ratio, which suggests financial stability. However, the negative return on equity indicates that the company is not effectively generating profit from its equity base. The debt-to-equity ratio is low, which is a positive sign, indicating low financial leverage.

Cash Flow

AFC Energy faces challenges in its cash flow, with negative free cash flow and operating cash flow, which are both deteriorating year over year. The operating cash flow to net income ratio is also negative, highlighting inefficiencies in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.61M	4.00M	227.00K	582.00K	592.80K	0.00
Gross Profit	-6.01M	-1.87M	-67.00K	-1.51M	-777.97K	-397.37K
EBITDA	-18.38M	-16.66M	-17.82M	-17.60M	-9.51M	-4.20M
Net Income	-19.25M	-17.42M	-17.48M	-16.45M	-9.38M	-4.22M
Balance Sheet
Total Assets	27.70M	36.57M	36.24M	50.68M	63.14M	34.82M
Cash, Cash Equivalents and Short-Term Investments	4.26M	15.37M	27.37M	40.22M	55.99M	31.30M
Total Debt	415.00K	664.00K	1.12M	996.00K	906.13K	259.80K
Total Liabilities	6.35M	6.30M	5.15M	4.94M	3.26M	1.80M
Stockholders Equity	21.34M	30.27M	31.09M	45.74M	59.89M	33.02M
Cash Flow
Free Cash Flow	-17.05M	-26.31M	-14.81M	-15.35M	-10.34M	-4.14M
Operating Cash Flow	-15.16M	-18.91M	-13.14M	-12.63M	-8.44M	-3.25M
Investing Cash Flow	-7.77M	-7.70M	-1.24M	-2.72M	-1.90M	-809.65K
Financing Cash Flow	14.81M	14.62M	1.53M	197.00K	34.76M	34.04M

AFC Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AFC, the sentiment is Positive. The current price of 10.2 is below the 20-day moving average (MA) of 10.58, above the 50-day MA of 9.83, and above the 200-day MA of 10.03, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 56.51 is Neutral, neither overbought nor oversold. The STOCH value of 61.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AFC.

AFC Energy 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%
AFC	51 Neutral	£130.06M	-5.01	-86.37%	―	732.03%	12.60%
CWR	51 Neutral	£486.74M	-13.70	-23.26%	―	12.58%	12.39%
IKA	51 Neutral	£66.91M	-10.48	-31.45%	―	265.67%	-16.50%
GELN	46 Neutral	£50.47M	-5.39	―	―	―	―

AFC Energy Corporate Events

AFC Energy Announces Share Admission to AIM

AFC Energy has announced the admission of 1,404,554 ordinary shares to the London Stock Exchange’s AIM to satisfy discretionary bonuses for certain leadership team members. This move will increase the company’s total voting shares to 1,132,966,953, allowing shareholders to assess their interests under the FCA’s rules, highlighting AFC Energy’s strategic financial maneuvers to support its leadership and operational goals.

The most recent analyst rating on (GB:AFC) stock is a Hold with a £11.00 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

AFC Energy Reports Strategic Progress and Market Opportunities in Hydrogen Sector

AFC Energy announced a trading update for the year ending October 31, 2025, highlighting strategic progress and developmental achievements. The company reported multiple fuel cell generator deployments and successful completion of the first phase of a Joint Development Agreement with an S&P 500 partner. AFC Energy is on track to deliver its next-generation fuel cell generators at significantly reduced costs and expects to produce low-cost hydrogen for commercial use by mid-2026. The company has undergone a strategic restructuring to align with its objectives, resulting in cost reductions and a strengthened leadership team. The hydrogen market’s growth, particularly in the US, presents a significant opportunity for AFC Energy’s technologies, especially in data centers, which are increasingly integrating fuel cell systems.

The most recent analyst rating on (GB:AFC) stock is a Hold with a £9.50 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

AFC Energy Updates Share Capital and Voting Rights

AFC Energy has announced that as of October 31, 2025, its issued and outstanding share capital consists of 1,131,542,399 ordinary shares, each with voting rights. This update is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules, indicating the company’s commitment to transparency and regulatory compliance.

The most recent analyst rating on (GB:AFC) stock is a Hold with a £9.50 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

AFC Energy’s CTO to Lead New UK Ammonia Alliance

AFC Energy announced that its Chief Technology Officer, Dr. Mike Rendall, has been appointed as the inaugural Chair of the UK Ammonia Alliance (UKAA), a new industry group aimed at accelerating the growth of the UK’s ammonia industry. The UKAA, comprising of several leading companies, seeks to promote low-carbon ammonia technologies to support decarbonization, energy security, and economic growth. The Alliance will host its first public event in Parliament, advocating for supportive government policies to harness the benefits of the hydrogen market. This initiative underscores AFC Energy’s commitment to advancing clean ammonia imports and hydrogen accessibility in the UK, potentially influencing policy changes to bolster market growth and energy resilience.

The most recent analyst rating on (GB:AFC) stock is a Hold with a £9.50 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

AFC Energy CEO’s Spouse Acquires Significant Shareholding

AFC Energy announced that Sophie Wilson, the spouse of CEO John Wilson, purchased 450,000 ordinary shares in the company. This transaction increases Mr. Wilson’s interest to 7,000,000 shares, representing 0.62% of the company’s issued share capital. This move may indicate confidence in the company’s future prospects and could potentially impact stakeholder perceptions positively.

The most recent analyst rating on (GB:AFC) stock is a Hold with a £9.50 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

AFC Energy Updates on AGM Vote and Broker Change

AFC Energy recently updated its shareholders on the outcome of its Annual General Meeting, where Resolution 8 concerning the 2024 remuneration report was passed with 77.09% approval. Despite the majority vote, the company acknowledged the significant minority opposition and engaged with major shareholders to understand their concerns, ultimately affirming the resolution’s alignment with shareholder value creation. Additionally, AFC Energy announced a change in its brokerage arrangements, with RBC Europe Limited stepping down as Joint Broker and Zeus and Peel Hunt continuing in their roles.

The most recent analyst rating on (GB:AFC) stock is a Sell with a £9.00 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.