Verditek Plc (EARN) AI Stock Analysis

• Market Cap: £6.76M
• Dividend Yield: N/A
• Average Volume (3M): 175.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: 1998.76%
• EPS Growth: 91.06%
• Country: UK
• Employees: 11
• Sector: Financial
• Sector Strength: 70
• Industry: Solar
• EPS (TTM): >-0.01
• Shares Outstanding: 133,908,360
• 10 Day Avg. Volume: 157,741
• 30 Day Avg. Volume: 175,853
• PEG Ratio: 0.01
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 1.29
• P/FCF Ratio: -1.08
• 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: 38 Underperform
• Price Target: 4.50p ▼(-5.26% Downside)

The overall stock score is primarily impacted by poor financial performance and valuation metrics, reflecting significant challenges in profitability and cash flow management. Technical analysis further indicates bearish sentiment. Positive corporate events provide some optimism but are insufficient to offset the financial and technical weaknesses.

Positive Factors

Strong reported revenue growth

A near-2000% reported revenue increase signals meaningful expansion in sales or contract wins, implying growing market traction. If sustained, this supports scaling opportunities, better unit economics, and stronger bargaining power with suppliers and customers over the medium term.

Active corporate growth initiatives

Securing contracts, employee schemes and targeted acquisitions indicate management is executing a strategic growth agenda. These durable moves can expand addressable markets, improve retention and integrate capabilities, strengthening long-term competitive positioning.

Improving leverage metrics

An improving debt-to-equity trend and recovery in shareholders' equity reduce refinancing and solvency risk. Better leverage provides more flexibility to invest in operations or weather cycles, supporting sustainability of the business model over the coming quarters.

Negative Factors

Consistent operating losses

Persistently negative operating results indicate the company has not reached sustainable profitability. Continued operating losses erode capital and require external financing or dilution, making long-term viability dependent on rapid margin improvement or ongoing funding.

Negative free cash flow

Ongoing negative free cash flow shows the business is burning cash from operations and investments. This undermines the ability to self-fund growth, increases reliance on external capital, and raises execution risk if financing conditions tighten over the medium term.

Weak margins and profitability metrics

Low gross margins and negative EBIT/EBITDA highlight structural cost or pricing issues. Without durable margin recovery, revenue growth may not translate to profitability, constraining cash generation and limiting reinvestment potential over multiple quarters.

Verditek Plc Business Overview & Revenue Model

Company Description

EARNZ plc operates as a clean technology company in the United Kingdom, Italy, and rest of Europe. It manufactures and commercializes solar technologies, and lightweight flexible solar panels. The company's solar modules are used in various applications, such as transportation, real estate, consumer retail, and telecom sectors, as well as in caravans and holiday homes, solar carports and electric vehicle charging, and hotel, safari, glamping, and corporate events; and military, disaster relief, and construction camps. The company was formerly known as Verditek PLC and changed its name to EARNZ plc in March 2024. EARNZ plc was incorporated in 2016 and is based in London, the United Kingdom.

How the Company Makes Money

Verditek generates revenue primarily through the sale of its solar panels and related technologies. The company's revenue model is based on direct sales to commercial clients, partnerships with distributors, and licensing agreements for its proprietary technologies. Key revenue streams include the manufacturing and sale of lightweight solar panels, which are designed for specific applications in various industries, including construction, transportation, and renewable energy projects. Additionally, Verditek has established significant partnerships with other companies in the renewable energy sector, enabling it to expand its market reach and enhance its product offerings. These collaborations, along with an increasing demand for sustainable energy solutions, contribute to the company's overall earnings.

Verditek Plc Financial Statement Overview

Summary

Verditek Plc faces significant financial challenges. Despite some revenue and equity improvements, the company struggles with profitability and cash flow management. Consistent operating losses and negative cash flows pose risks to its financial stability.

Income Statement

Verditek Plc's income statement reflects significant challenges. The company has consistently operated at a net loss over the years, with a negative net profit margin. Despite a substantial revenue increase in 2024, the net income remains negative, indicating profitability issues. Gross profit margin is also low, highlighting cost management issues. The EBIT and EBITDA margins are negative, suggesting operational difficulties.

Balance Sheet

The balance sheet shows mixed signals. On the positive side, the company's debt-to-equity ratio has improved over time, indicating better leverage management. However, the stockholders' equity has been negative in prior years, though it appears to have recovered recently. The equity ratio is low, and the continued losses suggest a potential risk of financial instability if not addressed.

Cash Flow

Verditek Plc's cash flow position is concerning. The company has consistently experienced negative free cash flow, indicating that it is burning cash at an unsustainable rate. Operating cash flow is also negative, reflecting underlying operational challenges. The free cash flow to net income ratio is low, suggesting inefficiencies in converting earnings to cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.37M	2.64M	606.26K	417.46K	107.63K	21.52K
Gross Profit	1.40M	348.00K	-257.81K	-191.61K	-561.12K	-276.55K
EBITDA	-1.89M	-2.70M	-1.80M	-1.57M	-729.92K	-2.11M
Net Income	-2.14M	-2.82M	-2.09M	-1.82M	-988.48K	-2.23M
Balance Sheet
Total Assets	9.11M	8.94M	1.05M	2.33M	2.72M	3.59M
Cash, Cash Equivalents and Short-Term Investments	1.23M	1.38M	53.92K	842.63K	237.61K	1.71M
Total Debt	1.29M	1.62M	830.81K	339.99K	437.50K	264.93K
Total Liabilities	4.48M	4.96M	1.14M	629.98K	848.72K	850.29K
Stockholders Equity	4.63M	3.98M	-97.77K	1.70M	1.98M	2.86M
Cash Flow
Free Cash Flow	-3.01M	-3.15M	-1.26M	-1.12M	-1.69M	-2.95M
Operating Cash Flow	-2.93M	-3.08M	-1.26M	-1.10M	-1.68M	-2.92M
Investing Cash Flow	-833.34K	-976.00K	-2.04K	288.19K	-4.95K	-33.22K
Financing Cash Flow	2.59M	5.93M	465.42K	1.39M	231.30K	4.39M

Verditek Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.75
• 50DMA: Positive
• 100DMA: Negative
• 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:EARN, the sentiment is Positive. The current price of 4.75 is above the 20-day moving average (MA) of 4.46, above the 50-day MA of 4.66, and above the 200-day MA of 4.69, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 77.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:EARN.

Verditek Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TIDE	58 Neutral	£5.26M	―	―	―	―	―
AIQ	41 Neutral	£2.27M	-7.14	―	―	-47.47%	12.50%
RDT	39 Underperform	£2.44M	-0.34	-213.44%	―	5.29%	72.50%
EARN	38 Underperform	£6.76M	-2.28	-56.69%	―	1998.76%	91.06%

Verditek Plc Corporate Events

EARNZ Delivers In-Line First Full-Year Results as Buy-and-Build Strategy Gains Traction

EARNZ plc reported that its results for the first full year of trading to 31 December 2025 are in line with expectations, marking a successful 18 months since its inception in 2024 and the implementation of its buy-and-build strategy. The company has integrated the 2024 acquisitions of Cosgrove & Drew and South West Heating Services, both of which outperformed consolidated forecasts in 2025, and the 2025 acquisition of A&D Carbon Solutions, which is delivering a major retrofit and renewables contract in Bradford and expanding into commercial solar projects. EARNZ also launched National Retrofit Solutions and Warm Low Living to target insurance-related retrofit insulation and regional public-sector retrofit work, respectively, and has recently secured additional public sector awards in Dorset and Leeds that are expected to underpin long-term profitable growth, despite significant capital outlays on acquisitions and new subsidiaries since listing in August 2024.

The most recent analyst rating on (GB:EARN) stock is a Sell with a £3.50 price target. To see the full list of analyst forecasts on Verditek Plc stock, see the GB:EARN Stock Forecast page.

EARNZ Chairman Increases Stake, Signaling Confidence in Decarbonization Strategy

EARNZ plc announced that Bob Holt, its Non-Executive Chairman, has acquired 200,000 ordinary shares at 4.17 pence per share, increasing his stake to 12,600,000 shares, which represents approximately 9.41% of the company’s issued share capital. This move signifies confidence in the company’s strategic direction and could potentially strengthen its market position as it continues to focus on energy services aligned with global decarbonization efforts.

The most recent analyst rating on (GB:EARN) stock is a Sell with a £3.50 price target. To see the full list of analyst forecasts on Verditek Plc stock, see the GB:EARN Stock Forecast page.

EARNZ Unaffected by Termination of ECO Scheme

EARNZ plc has announced that the termination of the UK Government’s Energy Company Obligation (ECO) scheme, as outlined in the recent Autumn Budget, will not impact its operations or growth strategy. The scheme, which was set to end in March 2026, contributes less than 1% to EARNZ’s annual turnover. The company remains optimistic about future government initiatives, particularly the anticipated Warm Homes Plan, and continues to engage with the government to enhance community housing and energy efficiency.

The most recent analyst rating on (GB:EARN) stock is a Sell with a £4.50 price target. To see the full list of analyst forecasts on Verditek Plc stock, see the GB:EARN Stock Forecast page.

EARNZ plc Launches 2025 SAYE Scheme for Employees

EARNZ plc has launched its 2025 Save As You Earn Scheme (SAYE) for eligible employees, offering options over ordinary shares at a discounted exercise price. With 15 employees participating, the scheme grants options over 1,338,327 shares, representing 1% of the company’s issued share capital, potentially enhancing employee engagement and aligning interests with company performance.

The most recent analyst rating on (GB:EARN) stock is a Hold with a £5.50 price target. To see the full list of analyst forecasts on Verditek Plc stock, see the GB:EARN Stock Forecast page.

EARNZ plc Launches 2025 SAYE Scheme and Adjusts LTIP Awards

EARNZ plc has launched the 2025 Save As You Earn (SAYE) share scheme for eligible UK-based employees, allowing them to make monthly salary deductions over three years in exchange for options on the company’s shares. Additionally, the company has granted Long Term Incentive Plan (LTIP) awards to its CEO and CFO, with changes made to the option terms to simplify share incentives.

The most recent analyst rating on (GB:EARN) stock is a Sell with a £4.50 price target. To see the full list of analyst forecasts on Verditek Plc stock, see the GB:EARN Stock Forecast page.