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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)

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Neutral 41 (OpenAI - 4o)
Rating:41Neutral
Price Target:
8.50p
▼(-10.53% Downside)
The overall stock score is primarily influenced by financial performance challenges, including ongoing profitability and cash flow issues. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to negative earnings. The absence of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Revenue Growth
AFC Energy's significant revenue growth indicates strong market demand for its hydrogen fuel cell technology, suggesting potential for future expansion and increased market share.
Strong Balance Sheet
A strong balance sheet with low financial leverage provides AFC Energy with stability and flexibility to invest in growth opportunities and withstand economic fluctuations.
Industry Trends
The growing global focus on sustainable energy and supportive government policies enhance AFC Energy's long-term growth prospects in the hydrogen fuel cell market.
Negative Factors
Profitability Challenges
Persistent negative profit margins highlight operational inefficiencies and the need for AFC Energy to improve cost management to achieve sustainable profitability.
Cash Flow Issues
Deteriorating cash flow positions may constrain AFC Energy's ability to fund operations and invest in growth, necessitating improved cash management strategies.
Negative Return on Equity
A negative return on equity suggests inefficiencies in capital utilization, which could hinder AFC Energy's ability to deliver shareholder value and attract investment.

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

AFC Energy Business Overview & Revenue Model

Company DescriptionAFC Energy (AFC) is a clean energy technology company focused on the development and commercialization of alkaline fuel cell systems that convert hydrogen into electricity. Operating primarily in the renewable energy sector, AFC aims to provide sustainable energy solutions for various applications, including transportation, stationary power generation, and industrial processes. The company’s core products include its innovative hydrogen fuel cell systems, which are designed to reduce carbon emissions and enhance energy efficiency across multiple industries.
How the Company Makes MoneyAFC 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 Earnings Call Summary

Earnings Call Date:Mar 19, 2025
(Q4-2024)
|
% Change Since: |
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 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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.61M4.00M227.00K582.00K592.80K0.00
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 Assets27.70M36.57M36.24M50.68M63.14M34.82M
Cash, Cash Equivalents and Short-Term Investments4.26M15.37M27.37M40.22M55.99M31.30M
Total Debt415.00K664.00K1.12M996.00K906.13K259.80K
Total Liabilities6.35M6.30M5.15M4.94M3.26M1.80M
Stockholders Equity21.34M30.27M31.09M45.74M59.89M33.02M
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 Flow14.81M14.62M1.53M197.00K34.76M34.04M

AFC Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.50
Price Trends
50DMA
9.30
Positive
100DMA
9.61
Negative
200DMA
9.62
Negative
Market Momentum
MACD
0.11
Negative
RSI
54.76
Neutral
STOCH
78.26
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 9.5 is above the 20-day moving average (MA) of 9.12, above the 50-day MA of 9.30, and below the 200-day MA of 9.62, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 54.76 is Neutral, neither overbought nor oversold. The STOCH value of 78.26 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
£127.24M22.8315.77%-5.73%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
£680.85M-20.32-23.26%12.58%12.39%
43
Neutral
£76.85M-12.04-31.45%265.67%-16.50%
41
Neutral
£98.44M-3.80-86.37%732.03%12.60%
38
Underperform
£19.94M-4.68-36.75%20.98%17.29%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AFC
AFC Energy
9.50
-1.10
-10.38%
GB:EAAS
eEnergy Group
4.45
-0.50
-10.10%
GB:CWR
Ceres Power Holdings
370.80
204.70
123.24%
GB:DIA
Dialight
322.00
221.00
218.81%
GB:IKA
Ilika plc
41.30
20.80
101.46%
GB:GELN
Gelion PLC
20.80
1.80
9.47%

AFC Energy Corporate Events

Business Operations and StrategyProduct-Related Announcements
AFC Energy Reports Strategic Progress and Market Opportunities in Hydrogen Sector
Positive
Nov 6, 2025

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.

Regulatory Filings and Compliance
AFC Energy Updates Share Capital and Voting Rights
Neutral
Oct 31, 2025

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.

Business Operations and StrategyExecutive/Board Changes
AFC Energy’s CTO to Lead New UK Ammonia Alliance
Positive
Oct 21, 2025

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.

Other
AFC Energy CEO’s Spouse Acquires Significant Shareholding
Positive
Oct 15, 2025

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.

Business Operations and StrategyShareholder Meetings
AFC Energy Updates on AGM Vote and Broker Change
Neutral
Oct 10, 2025

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.

Business Operations and StrategyExecutive/Board Changes
AFC Energy Appoints Nick Walker as Chief Strategy Officer to Drive Commercial Growth
Positive
Sep 15, 2025

AFC Energy has appointed Nick Walker as Chief Strategy Officer to lead the commercialization of its ammonia cracker and fuel cell technologies. With over 25 years of experience in hydrogen and clean energy sectors, Walker will enhance commercial partnerships and drive growth, aligning strategic objectives with operational delivery. His role will also involve strengthening stakeholder engagement and investor relations, reflecting AFC Energy’s focus on commercial growth and value creation for shareholders.

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.

Business Operations and Strategy
AFC Energy CEO Increases Stake, Signaling Confidence in Hydrogen Future
Positive
Aug 14, 2025

AFC Energy announced that its CEO, John Wilson, purchased 250,000 ordinary shares in the company, increasing his total shareholding to 6,550,000 shares, which represents 0.58% of the company’s issued share capital. This transaction underscores the CEO’s confidence in AFC Energy’s strategic direction and potential growth in the hydrogen power generation sector, potentially impacting investor sentiment and the company’s market positioning.

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 Chairman Increases Stake, Signaling Confidence in Hydrogen Strategy
Positive
Aug 14, 2025

AFC Energy announced that its Non-Executive Chairman, Gary Bullard, has purchased 100,000 ordinary shares in the company, increasing his stake to 5,705,000 shares, which represents 0.50% of the company’s issued share capital. This transaction reflects confidence in AFC Energy’s strategic direction and its positioning in the hydrogen power generation sector, potentially impacting investor sentiment and stakeholder confidence positively.

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 CEO Increases Stake in Company
Positive
Aug 13, 2025

AFC Energy announced that its CEO, John Wilson, has purchased 228,733 ordinary shares of the company at a price of 8.60 pence per share. This transaction increases his total shareholding to 6,300,000 shares, representing 0.56% of the company’s issued share capital. This move may signal confidence in the company’s strategic direction and potential growth, potentially impacting investor sentiment and market perception.

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.

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: Nov 11, 2025