Gencell (GNCL) AI Stock Analysis

• Market Cap: ₪68.62M
• 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): -37.00
• Shares Outstanding: 45,502,796
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: 180.00 ▲(81.63% Upside)

The score is held back primarily by weak financial performance (ongoing losses and negative operating/free cash flow), partially offset by strong technical momentum (price above key moving averages with positive MACD). Valuation is constrained by a negative P/E and no dividend yield data.

Positive Factors

Proprietary fuel cell technology

Owning proprietary fuel‑cell technology and focusing on backup, grid support and off‑grid uses creates durable competitive differentiation. This supports licensing, long‑term contracts and recurring service revenue streams as electrification and decarbonization trends persist.

Strong revenue growth

Double‑digit top‑line expansion indicates product adoption and distribution traction. Sustained revenue growth provides a pathway to scale fixed costs, improve unit economics, and fund incremental R&D or service deployments that can materially improve margins over the medium term.

Conservative leverage

A low debt burden gives the company financial flexibility while it transitions to profitability. Conservatively leveraged balance sheets reduce refinancing risk, preserve capacity to fund product development or inventory build for sales growth, and withstand cyclical weakness.

Negative Factors

Persistent negative margins

Ongoing negative gross and net margins point to structural cost or pricing gaps versus revenue. Without durable margin improvement through scale, product redesign, or cost control, the business will struggle to convert growing revenues into sustainable profits over the next several quarters.

Negative operating and free cash flow

Continued negative operating and free cash flow creates persistent funding needs. Over a multi‑month horizon this can force dilutive equity raises or constrain capital spending for manufacturing and service capacity, limiting the firm's ability to scale and capitalize on demand.

Negative return on equity

A negative ROE indicates shareholders' capital is not producing returns, signaling operational inefficiency or heavy investment without payback. Persisting negative ROE undermines investor confidence and makes it harder to attract non‑dilutive capital for long‑term growth.

Gencell Business Overview & Revenue Model

Company Description

GenCell Ltd. engages in the development and production of fuel cell-based energy systems. It offers GenCell BOX, a long-duration backup power solution that provides source of 5kW backup power for telecom and critical communications applications; GenCell REX, a utility backup power solution that produces 5kW of emission-free electricity for substations during power outages; and GenCell FOX, an off-grid power solution for telecom, schools, homes, hospital, border protection, CCTV, water purification and pumps, and heating. The company also provides GENCELL EVOX, a grid independent EV charging station; and GenCell IoT Remote Manager, a backup power solution for utilities, telecom, homeland security, healthcare, and other industrial applications. It operates in Israel, Mexico, the United States, Romania, Germany, Italy, and Canada. GenCell Ltd. was incorporated in 2011 and is headquartered in Petah Tikva, Israel.

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

Weak profitability and cash generation drive the score: persistent negative gross and net margins plus negative operating and free cash flow indicate operational inefficiency and liquidity risk. The balance sheet is helped by relatively low leverage, but negative ROE shows shareholder capital is not producing returns.

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: Positive
• Last Price: 99.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:GNCL, the sentiment is Positive. The current price of 99.1 is below the 20-day moving average (MA) of 133.14, below the 50-day MA of 109.97, and below the 200-day MA of 124.60, indicating a bullish trend. The MACD of 16.83 indicates Negative momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 34.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:GNCL.

Gencell Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENLT	73 Outperform	₪23.96B	51.80	8.71%	―	21.55%	139.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GNCL	54 Neutral	₪68.62M	-0.50	―	―	110.02%	26.70%
ELLO	51 Neutral	₪1.13B	-163.52	-3.99%	―	-6.85%	1.72%
APLP	48 Neutral	₪379.55M	-3.47	―	―	-23.79%	6.81%