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AFC Energy PLC (GB:AFC)
LSE:AFC

AFC Energy (AFC) AI Stock Analysis

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GB

AFC Energy

(LSE:AFC)

Rating:58Neutral
Price Target:
15.50p
▲(0.52%Upside)
AFC Energy's overall stock score reflects the mix of promising technical indicators and strategic initiatives against the backdrop of financial and operational challenges. The most significant factors are the positive market momentum and strategic growth plans, tempered by ongoing profitability and cash flow issues.

AFC Energy (AFC) vs. iShares MSCI United Kingdom ETF (EWC)

AFC Energy Business Overview & Revenue Model

Company DescriptionAFC 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 MoneyAFC Energy generates revenue through the sale and licensing of its proprietary hydrogen fuel cell systems and related technology. The company's primary revenue streams include direct sales of fuel cell systems to industries seeking clean energy solutions and licensing agreements with partners who integrate AFC Energy's technology into their own products or services. Additionally, AFC Energy may engage in strategic partnerships and collaborations that involve joint ventures or co-development projects, contributing to its earnings. The company also earns income from providing ongoing maintenance, support, and consulting services to its clients, ensuring optimal performance and efficiency of its installed systems.

AFC Energy Earnings Call Summary

Earnings Call Date:Mar 19, 2025
(Q4-2024)
|
% Change Since: 130.15%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The call highlighted significant revenue growth and strategic advancements, particularly with the launch of the Hy-5 product and a new market-led focus. However, it also reflected challenges such as cash burn, delays in generator deployment, and uncertainty in order commitments.
Q4-2024 Updates
Positive Updates
Significant Increase in Revenue
The company made £4 million in equipment sales in FY '24, up from £400,000 in FY '23, primarily attributed to the joint venture with Speedy Hire.
Launch of Hy-5 Product
The Hy-5, a containerized portable cracking module for hydrogen production, was launched at a disruptive price point of £10 a kilo, significantly lower than competitors.
Strategic Shift to Market-Led Growth
The company has adopted a market-led growth strategy, focusing on reducing manufacturing costs and achieving cost parity with diesel generators for off-grid applications.
Strong Cash Position and Funding
The company had cash reserves of £15.4 million at year-end and secured £3.7 million in U.K. grant funding for FY '25.
Joint Venture Developments
Established a joint venture with Speedy Hire, sold 20 generator units, and built a pipeline with expectations for site deployments.
Negative Updates
Negative Cash Impact from Sales
Despite £4 million in revenue, the cash impact was negative due to VAT payments and timing differences in JV receipts.
Pause in Generator Rollout
Rollout of fuel cell generators paused until manufacturing costs are reduced, impacting immediate revenue generation.
High Cash Burn Rate
Current cash burn rate is approximately £1 million per month, which could pressure the company’s cash reserves.
Market Challenges and Delays
Deployments with Speedy Hire faced certification, safety, and training challenges, delaying market penetration.
Uncertainty Over Order Book
Confusion over the status of a £26 million order book, with only a portion being committed orders.
Company Guidance
In the recent call, AFC Energy provided guidance on several key metrics and strategic initiatives. The company reported £4 million in equipment sales for FY '24, a significant increase from the £400,000 recorded in FY '23. Additionally, they secured £0.5 million in UK grant funding with an expectation of £3.7 million more in FY '25. AFC Energy capitalized £4.4 million of development costs, indicating confidence in the future value of their products. The company ended the fiscal year with a cash balance of £15.4 million and outlined a plan to reduce cash burn to £1 million per month. They aim to achieve cost parity with diesel generators by 2026, pricing hydrogen at £10 per kilo compared to the current £65 per kilo. This strategic shift from technology-led to market-led growth is expected to enhance AFC Energy's competitive positioning and shareholder value.

AFC Energy Financial Statement Overview

Summary
AFC Energy is experiencing revenue growth, but it continues to struggle with profitability and cash flow generation. The company's balance sheet remains strong with low leverage, but the inability to convert revenues into profit and cash poses a significant challenge.
Income Statement
35
Negative
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
40
Negative
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
30
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.00M227.00K582.00K592.80K0.00
Gross Profit-1.87M-67.00K-1.51M-777.97K-397.37K
EBITDA-16.66M-17.82M-17.60M-9.51M-4.20M
Net Income-17.42M-17.48M-16.45M-9.38M-4.22M
Balance Sheet
Total Assets36.57M36.24M50.68M63.14M34.82M
Cash, Cash Equivalents and Short-Term Investments15.37M27.37M40.83M55.99M31.57M
Total Debt664.00K1.12M996.00K906.13K259.80K
Total Liabilities6.30M5.15M4.94M3.26M1.80M
Stockholders Equity30.27M31.09M45.74M59.89M33.02M
Cash Flow
Free Cash Flow-26.31M-14.81M-15.35M-10.34M-4.14M
Operating Cash Flow-18.91M-13.14M-12.63M-8.44M-3.25M
Investing Cash Flow-7.70M-1.24M-2.72M-1.90M-809.65K
Financing Cash Flow14.62M1.53M197.00K34.76M34.04M

AFC Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.42
Price Trends
50DMA
11.39
Positive
100DMA
9.28
Positive
200DMA
9.50
Positive
Market Momentum
MACD
1.18
Positive
RSI
56.97
Neutral
STOCH
23.29
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 15.42 is above the 20-day moving average (MA) of 14.97, above the 50-day MA of 11.39, and above the 200-day MA of 9.50, indicating a bullish trend. The MACD of 1.18 indicates Positive momentum. The RSI at 56.97 is Neutral, neither overbought nor oversold. The STOCH value of 23.29 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

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥255.26B12.938.49%3.09%6.31%12.94%
GBCWR
60
Neutral
£163.77M-16.93%132.44%47.77%
GBAFC
58
Neutral
£132.11M-56.78%1663.00%5.93%
£18.39M-53.36%
GBDIA
£78.42M-21.17%
GBIKA
50
Neutral
£72.32M-20.56%113.89%25.14%
£42.44M-58.83%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AFC
AFC Energy
15.42
-1.00
-6.09%
GB:EAAS
eEnergy Group
4.51
-0.99
-18.00%
GB:CWR
Ceres Power Holdings
84.70
-116.90
-57.99%
GB:DIA
Dialight
196.00
2.50
1.29%
GB:IKA
Ilika plc
40.00
15.00
60.00%
GB:GELN
Gelion PLC
24.00
2.00
9.09%

AFC Energy Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
AFC Energy Achieves Major Cost Reduction in Hydrogen Fuel Cell Generators
Positive
Jun 13, 2025

AFC Energy has announced a significant cost reduction of approximately 85% in the build cost of its 30kW hydrogen fuel cell generators, achieved through low-cost stack technology and value engineering. This reduction is part of their strategy to drive market adoption of hydrogen power without relying on government subsidies. The company has also signed a supply agreement for fuel cell systems and is progressing towards a global strategic manufacturing partnership with Volex Plc to further reduce costs through economies of scale, supporting AFC Energy’s volume growth plans.

The most recent analyst rating on (GB:AFC) stock is a Buy with a £40.00 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
AFC Energy Partners with Global Industrial Leader for Hydrogen Production
Positive
Jun 4, 2025

AFC Energy has entered a Joint Development Agreement with a confidential global industrial S&P 500 company to develop ammonia crackers for hydrogen production using its proprietary technology. This collaboration is expected to generate significant revenues for AFC Energy from 2027 onwards, enhancing its market position in the hydrogen economy and supporting heavy industry decarbonization.

The most recent analyst rating on (GB:AFC) stock is a Buy with a £30.00 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

Regulatory Filings and Compliance
AFC Energy Announces Share Capital Details for Regulatory Compliance
Neutral
May 30, 2025

AFC Energy plc announced that as of May 30, 2025, the company’s issued and outstanding share capital consists of 856,703,146 Ordinary Shares, each with voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules. The announcement underscores the company’s commitment to transparency and regulatory compliance, which is vital for maintaining investor confidence and supporting its strategic initiatives in the hydrogen energy sector.

The most recent analyst rating on (GB:AFC) stock is a Buy with a £40.00 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

Other
AFC Energy Stakeholders Increase Shareholdings, Signaling Confidence
Positive
May 7, 2025

AFC Energy, a prominent player in hydrogen power generation technologies, announced share purchases by key stakeholders. Gary Bullard, the Non-Executive Chairman, acquired 49,343 shares, while Sophie Wilson, the spouse of CEO John Wilson, purchased 304,617 shares. These transactions indicate confidence in the company’s future prospects and may positively impact its market perception and stakeholder trust.

Business Operations and Strategy
AFC Energy Share Purchase Highlights Confidence in Hydrogen Technology Growth
Positive
May 6, 2025

AFC Energy announced that Elaine Sullivan, the spouse of Non-Executive Chairman Gary Bullard, purchased 155,657 ordinary shares in the company at a price of 10.14 pence per share, bringing Mr. Bullard’s total interest to 4,155,657 shares, representing 0.49% of the company’s issued share capital. This transaction underscores confidence in AFC Energy’s market position and potential growth, as the company continues to expand its hydrogen power generation technologies and explore new opportunities in decarbonization across various industries.

Business Operations and Strategy
AFC Energy CEO Increases Stake, Signaling Confidence in Hydrogen Future
Positive
May 6, 2025

AFC Energy has announced that its CEO, John Wilson, and his spouse, Sophie Wilson, have purchased a significant number of ordinary shares in the company. This move increases John Wilson’s total shareholding to 2,438,380 shares, representing 0.29% of the company’s issued share capital. This transaction reflects a strong vote of confidence in the company’s future prospects and its strategic focus on expanding its hydrogen power generation technologies. The purchase of shares by the company’s leadership may positively influence stakeholder perception and market confidence, reinforcing AFC Energy’s commitment to its growth and innovation in the hydrogen energy sector.

Other
AFC Energy CEO Increases Stake in Company
Positive
May 2, 2025

AFC Energy’s CEO, John Wilson, has purchased 491,395 ordinary shares in the company for his minor children, increasing his total shareholding to 2,215,113 shares, which represents 0.26% of the company’s issued share capital. This transaction underscores the CEO’s confidence in the company’s future prospects and may positively influence stakeholder perceptions, reinforcing AFC Energy’s commitment to its growth and market presence in the hydrogen energy sector.

Business Operations and Strategy
AFC Energy CFO Increases Stake, Signaling Confidence in Growth
Positive
May 1, 2025

AFC Energy announced that its Chief Financial Officer, Karl Bostock, has purchased 193,374 ordinary shares in the company, increasing his total shareholding to 443,374 shares, which represents 0.05% of the company’s issued share capital. This transaction underscores the confidence of the company’s leadership in its strategic direction and potential growth, which could positively impact its market position and stakeholder interests.

Other
AFC Energy CEO Increases Stake, Signaling Confidence in Company’s Future
Positive
Apr 23, 2025

AFC Energy’s CEO, John Wilson, and his spouse, Sophie Wilson, have recently purchased a significant number of shares in the company, indicating confidence in the company’s future. This move increases Mr. Wilson’s stake in the company to 0.20% of its issued share capital, potentially impacting shareholder dynamics and reflecting a positive outlook on AFC Energy’s market position and growth potential.

Shareholder MeetingsBusiness Operations and Strategy
AFC Energy Passes All AGM Resolutions Amid Shareholder Concerns
Neutral
Apr 23, 2025

AFC Energy announced that all resolutions at its recent Annual General Meeting were passed by the necessary majority, though a significant minority opposed the remuneration report. The company plans to engage with shareholders to understand their concerns and will provide feedback within six months. This engagement reflects AFC Energy’s commitment to addressing shareholder concerns, potentially impacting its governance and stakeholder relations.

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: Jun 21, 2025