Verditek Plc (EARN) AI Stock Analysis

• Market Cap: £7.23M
• Dividend Yield: N/A
• Average Volume (3M): 175.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• 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: 49 Neutral
• Price Target: 5.00p ▲(5.26% Upside)
• Action: Upgraded Date: 02/03/26
• Date: Action: Upgraded 02/03/26

The score is held down primarily by weak financial performance (ongoing losses and negative cash flow). Technical indicators are supportive with improving momentum and price above key moving averages, but valuation remains constrained by the company being loss-making and lacking a dividend yield.

Positive Factors

Strong recent revenue growth

Reported extraordinary revenue growth (≈1999%), and the income statement notes a substantial 2024 revenue increase. Sustained top-line expansion can validate product-market fit, enable scale benefits, and provide a foundation for margin recovery if cost structure is addressed.

Improving leverage metrics

Management has improved the debt-to-equity ratio over time, reducing leverage pressure. Better leverage enhances financial flexibility, lowers default risk, and supports capacity to fund strategic initiatives or acquisitions without immediate dilutive financing, aiding medium-term stability.

Proactive corporate actions

Recent corporate events—new contracts, employee schemes, and acquisitions—signal active strategy to expand revenue channels, retain talent, and add capabilities. These structural moves can increase addressable market and operational scale if integrated and executed effectively over months.

Negative Factors

Persistent operating losses

The company has run persistent net losses and negative profit margins, indicating structural profitability issues. Ongoing unprofitability undermines ability to reinvest, weakens stakeholder confidence, and requires either sustained margin improvement or recurring external funding to survive long term.

Negative free cash flow and cash burn

Consistent negative free cash flow and operating cash flow show the company is burning cash at the operational level. This reduces runway, increases dependency on financing, and constrains investments. Without durable cash generation, growth initiatives may be unsustainable.

Weak equity position and low equity ratio

Prior negative shareholders' equity and a low equity ratio point to a fragile balance sheet and thin capital buffers. This heightens solvency risk in downturns, limits borrowing capacity, and makes the firm more vulnerable to shocks unless profitability and retained earnings improve.

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

Weak fundamentals: persistent net losses with negative EBIT/EBITDA margins and low gross margin, plus consistently negative operating cash flow and free cash flow. Balance sheet leverage has improved, but prior negative equity and ongoing losses still signal elevated financial risk.

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	Jun 2022	Jun 2021
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: Neutral
• Last Price: 4.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 4.75 is below the 20-day moving average (MA) of 5.64, below the 50-day MA of 5.17, and below the 200-day MA of 4.91, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 40.25 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
GSF	65 Neutral	£248.26M	3.37	-6.66%	8.18%	-9.72%	-25.25%
TAN	50 Neutral	£11.00M	-3.70	-3.23%	―	―	―
EARN	49 Neutral	£7.23M	-3.78	-56.69%	―	1998.76%	91.06%
EGT	45 Neutral	£9.40M	-4.39	-22.43%	―	―	―

Verditek Plc Corporate Events

EARNZ Sees Rising Social Housing Orders on Back of UK Warmer Homes Plan

EARNZ plc has welcomed the UK Government’s newly announced Warmer Homes Plan, describing it as a major catalyst for increased demand from the social housing sector. The £15 billion programme, designed to upgrade British homes with solar panels, battery storage and heat pumps and to lift up to one million households out of fuel poverty by 2030, is already driving higher order activity for the company, with funding channeled through existing Warm Homes schemes before being merged into a single initiative, potentially strengthening EARNZ’s pipeline and positioning within the social housing decarbonisation market.

The most recent analyst rating on (GB:EARN) stock is a Hold with a £5.00 price target. To see the full list of analyst forecasts on Verditek Plc stock, see the GB:EARN Stock Forecast page.

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.