Gencell (GNCL) AI Stock Analysis

• Market Cap: 28.99M
• Dividend Yield: N/A
• Average Volume (3M): 89.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: 110.02%
• EPS Growth: 26.70%
• Country: IL
• Employees: 105
• Sector: Technology
• Sector Strength: 88
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.66
• Shares Outstanding: 22,286,217
• 10 Day Avg. Volume: 93,638
• 30 Day Avg. Volume: 89,462
• PEG Ratio: 0.03
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 1.73
• P/FCF Ratio: -0.86
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: 94.00 ▲(2.40% Upside)

Gencell's overall stock score is primarily impacted by its poor financial performance, characterized by negative profitability and cash flow issues. Technical analysis further supports a bearish outlook, with the stock trading below key moving averages and showing oversold conditions. The negative P/E ratio and lack of dividend yield also contribute to a weak valuation.

Positive Factors

Revenue Growth

Gencell's impressive revenue growth indicates strong market demand and successful product adoption, supporting long-term business expansion.

Low Leverage

Low leverage provides Gencell with financial flexibility and reduces risk, allowing for strategic investments and resilience in downturns.

Recurring Income

Recurring income from service agreements enhances revenue stability, providing a reliable cash flow that supports operational and strategic initiatives.

Negative Factors

Negative Profitability

Ongoing negative profitability indicates challenges in cost management and operational efficiency, threatening long-term financial health.

Cash Flow Issues

Negative cash flows suggest liquidity challenges, potentially limiting Gencell's ability to fund growth initiatives and meet financial obligations.

Operational Inefficiencies

Operational inefficiencies hinder profitability and growth, requiring strategic improvements to enhance productivity and financial stability.

Gencell Business Overview & Revenue Model

Company Description

Gencell (GNCL) is a pioneering company in the renewable energy sector, specializing in the development and production of advanced fuel cell technology. The company focuses on providing clean and efficient energy solutions for various applications, including backup power systems, grid support, and off-grid energy generation. By leveraging its proprietary technology, Gencell aims to reduce reliance on traditional fossil fuels and contribute to a sustainable energy future.

How the Company Makes Money

Gencell generates revenue primarily through the sale of its fuel cell systems and related services. The company offers a range of products designed for commercial, industrial, and residential applications, which are sold directly to customers and through strategic partnerships with energy providers and distributors. Additionally, Gencell benefits from ongoing service agreements and maintenance contracts, ensuring a steady stream of recurring income. The company may also explore opportunities in government contracts or grants that support renewable energy initiatives, further enhancing its revenue potential.

Gencell Financial Statement Overview

Summary

Gencell faces significant financial challenges with negative profitability and cash flow issues. Despite low leverage, the company struggles with operational inefficiencies and liquidity risks, as indicated by negative margins and cash flows.

Income Statement

Gencell's income statement reveals significant challenges with profitability. The company has consistently reported negative gross and net profit margins, indicating that it is not generating enough revenue to cover its costs. Despite a slight revenue growth in the TTM period, the margins remain deeply negative, suggesting ongoing operational inefficiencies and cost management issues.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio, which suggests conservative leverage. However, the return on equity is negative, indicating that the company is not generating returns on its shareholders' investments. The equity ratio is moderate, but the negative ROE highlights the company's struggle to convert equity into profit.

Cash Flow

Gencell's cash flow statement indicates negative operating and free cash flows, reflecting cash outflows from operations. The free cash flow to net income ratio is slightly above 1, suggesting that the company is managing to maintain cash flow relative to its net losses. However, the negative growth in free cash flow and operating cash flow coverage ratio highlight liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.99M	9.55M	4.86M	7.40M	5.54M	324.00K
Gross Profit	-2.05M	-947.00K	-5.17M	-2.65M	-2.96M	-1.56M
EBITDA	-16.67M	-17.61M	-29.19M	-35.20M	-19.20M	-18.30M
Net Income	-19.17M	-19.43M	-28.30M	-36.68M	-21.09M	-19.05M
Balance Sheet
Total Assets	16.22M	31.79M	55.45M	83.98M	80.65M	75.72M
Cash, Cash Equivalents and Short-Term Investments	1.09M	12.33M	4.79M	10.57M	11.88M	33.09M
Total Debt	139.00K	3.06M	7.25M	8.04M	8.72M	4.89M
Total Liabilities	4.38M	8.58M	13.13M	17.04M	14.43M	8.37M
Stockholders Equity	11.84M	23.21M	42.32M	66.93M	66.22M	67.35M
Cash Flow
Free Cash Flow	-12.87M	-19.08M	-27.36M	-29.27M	-18.37M	-10.86M
Operating Cash Flow	-12.39M	-18.26M	-25.47M	-21.98M	-10.79M	-9.94M
Investing Cash Flow	11.26M	26.93M	20.90M	-12.40M	-24.39M	-30.99M
Financing Cash Flow	-1.29M	-1.13M	-1.30M	33.28M	13.21M	72.51M

Gencell Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 91.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:GNCL, the sentiment is Negative. The current price of 91.8 is below the 20-day moving average (MA) of 110.98, below the 50-day MA of 123.76, and below the 200-day MA of 142.12, indicating a bearish trend. The MACD of -9.13 indicates Positive momentum. The RSI at 24.39 is Positive, neither overbought nor oversold. The STOCH value of 5.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:GNCL.

Gencell Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENLT	77 Outperform	$15.42B	33.46	8.71%	―	21.55%	139.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ELLO	58 Neutral	$891.13M	―	-3.99%	―	-6.85%	1.72%
APLP	48 Neutral	252.25M	-2.44	―	―	-23.79%	6.81%
GNCL	39 Underperform	28.99M	-0.38	―	―	110.02%	26.70%