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AFC Energy PLC (GB:AFC)
LSE:AFC
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AFC Energy (AFC) AI Stock Analysis

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GB:AFC

AFC Energy

(LSE:AFC)

Rating:45Neutral
Price Target:
10.50p
▲(3.75%Upside)
AFC Energy's stock is currently rated at the lower end due to financial performance challenges and technical weaknesses. However, corporate events provide some optimism with successful fundraising and strategic shifts potentially enhancing future prospects.

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

AFC Energy Business Overview & Revenue Model

Company DescriptionAFC Energy (AFC) is a leading UK-based company specializing in the development and production of alkaline fuel cells. These fuel cells are designed for use in various industries, including transportation, stationary power, and off-grid applications. The company focuses on providing clean energy solutions that are both sustainable and efficient, leveraging hydrogen as a primary energy source to generate electricity with minimal environmental impact.
How the Company Makes MoneyAFC Energy generates revenue primarily through the sale and licensing of its alkaline fuel cell technology. The company earns income by providing its fuel cell systems to industries seeking to reduce carbon emissions and improve energy efficiency. Additionally, AFC Energy engages in partnerships and collaborations with companies across different sectors to integrate its technology into larger projects. These collaborations often lead to joint ventures or contractual agreements that provide additional revenue streams. The company's R&D efforts and proprietary technology also position it to benefit from government incentives and grants aimed at fostering renewable energy innovations.

AFC Energy Earnings Call Summary

Earnings Call Date:Jul 16, 2025
(Q4-2024)
|
% Change Since: -32.26%|
Next Earnings Date:Mar 04, 2026
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 struggles 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
Negative
Last Price10.12
Price Trends
50DMA
13.05
Negative
100DMA
10.00
Positive
200DMA
9.67
Positive
Market Momentum
MACD
-0.83
Positive
RSI
33.19
Neutral
STOCH
5.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AFC, the sentiment is Negative. The current price of 10.12 is below the 20-day moving average (MA) of 14.07, below the 50-day MA of 13.05, and above the 200-day MA of 9.67, indicating a neutral trend. The MACD of -0.83 indicates Positive momentum. The RSI at 33.19 is Neutral, neither overbought nor oversold. The STOCH value of 5.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AFC.

AFC Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$11.08B15.705.19%2.15%3.13%-24.94%
63
Neutral
£194.00M-16.93%132.44%47.77%
50
Neutral
£82.45M-31.45%113.89%25.14%
45
Neutral
£95.36M-86.37%732.03%12.60%
41
Neutral
£15.68M-36.75%20.98%17.29%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AFC
AFC Energy
10.12
-5.08
-33.42%
GB:EAAS
eEnergy Group
4.05
-1.29
-24.16%
GB:CWR
Ceres Power Holdings
99.85
-115.75
-53.69%
GB:IKA
Ilika plc
45.60
18.60
68.89%

AFC Energy Corporate Events

Private Placements and FinancingShareholder MeetingsBusiness Operations and Strategy
AFC Energy Raises £27.5 Million in Successful Fundraising Effort
Positive
Jul 21, 2025

AFC Energy has successfully closed its RetailBook Offer, raising £4.5 million through the issuance of new shares. This is part of a larger fundraising effort totaling approximately £27.5 million, which includes a Firm Placing and Subscription. The funds are intended to support the company’s operations and strategic initiatives, with the next steps contingent on shareholder approval at a General Meeting scheduled for August 7, 2025.

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.

Business Operations and Strategy
AFC Energy Announces Investor Update Presentation
Positive
Jul 18, 2025

AFC Energy announced an upcoming Investor Update presentation to be held on July 22, 2025, featuring CEO John Wilson and CFO Karl Bostock. The presentation, accessible to current and potential shareholders, will be conducted via the Investor Meet Company platform, allowing participants to submit questions beforehand or during the live event. This initiative underscores AFC Energy’s commitment to transparency and engagement with its stakeholders, potentially enhancing investor confidence and interest in the company’s innovative hydrogen power solutions.

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.

Private Placements and FinancingShareholder Meetings
AFC Energy Secures £23 Million in Oversubscribed Fundraising
Positive
Jul 17, 2025

AFC Energy has successfully raised £23 million through an oversubscribed placing and subscription of new ordinary shares, with an additional £5 million expected from a RetailBook Offer. This fundraising effort, which includes participation from directors and retail investors, aims to support the company’s focus on near-term revenue opportunities and shareholder value enhancement. The new shares will be admitted to trading on AIM, contingent on shareholder approval at an upcoming General Meeting. This financial boost is expected to strengthen AFC Energy’s market position and facilitate the expansion of its product suite.

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 StrategyFinancial Disclosures
AFC Energy Accelerates Hydrogen Technology Commercialization with Strategic Partnerships
Positive
Jul 16, 2025

AFC Energy announced its interim results for the half year ending April 30, 2025, highlighting a strategic shift towards accelerating the commercialization of its hydrogen technology. The company has achieved an 85% cost reduction in its hydrogen fuel cell generators and launched the HY-5 unit under a new ‘Fuel as a Service’ model. Strategic partnerships, including a Joint Development Agreement with an S&P 500 company and a joint venture with Industrial Chemicals Group, are set to enhance AFC Energy’s market positioning. The company is focused on delivering cost-effective hydrogen solutions by 2026, aiming for cost parity with diesel without government subsidies, which could significantly impact its operations and stakeholder interests.

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.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
AFC Energy Reports Interim Results and Strategic Advancements in Hydrogen Technology
Positive
Jul 16, 2025

AFC Energy has announced its interim results for the half year ending April 2025, highlighting significant strides in reducing costs and advancing its hydrogen power generation technology. The company has achieved an 85% cost reduction in its hydrogen fuel cell generators and introduced a new Fuel as a Service (FaaS) model with its Hy-5 units, which produce hydrogen by cracking ammonia on-site. Strategic partnerships, including a Joint Development Agreement with an S&P 500 company and a joint venture with Industrial Chemicals Group, are set to accelerate commercial delivery and market disruption. The company is focused on achieving cost parity with diesel for offsite power applications by 2026, without government subsidies, and has launched a £20m fundraise to support its growth initiatives.

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.

Private Placements and FinancingBusiness Operations and Strategy
AFC Energy Announces £25 Million Fundraising to Boost Hydrogen Power Initiatives
Positive
Jul 16, 2025

AFC Energy has announced a proposed fundraising initiative to raise approximately £20 million through a placing of new Ordinary Shares and direct subscription with certain directors, alongside a RetailBook Offer of up to £5 million. This strategic move follows leadership changes and a shift to a market-led growth strategy, aiming to reduce production costs and focus on projects that deliver near-term shareholder value. The funds will be used to advance the commercialisation of their Hy-5 ammonia crackers and low-cost fuel cell generators, with the goal of establishing AFC Energy as a leader in zero-emission power generation.

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.

Private Placements and FinancingBusiness Operations and Strategy
AFC Energy Launches Retail Share Offer to Boost Corporate Funds
Neutral
Jul 16, 2025

AFC Energy plc has announced a conditional retail offer of new ordinary shares through RetailBook at a discounted price, aiming to raise funds for general corporate purposes. This offer is part of a broader fundraising initiative that includes a placing of shares to institutional investors and a direct subscription with certain directors. The RetailBook Offer is available to both existing shareholders and new investors, with applications open through a network of participating investment platforms and brokers. The initiative underscores AFC Energy’s commitment to involving retail investors and enhancing shareholder value, while also aiming to strengthen its financial position to support ongoing operations and strategic goals.

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 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.

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: Jul 22, 2025