Homebiogas (HMGS) AI Stock Analysis

• Market Cap: 39.02M
• Dividend Yield: N/A
• Average Volume (3M): 37.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 69
• Sector: Energy
• Sector Strength: 56
• Industry: Renewable Utilities
• EPS (TTM): -10.10
• Shares Outstanding: 28,336,428
• 10 Day Avg. Volume: 41,652
• 30 Day Avg. Volume: 37,792
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 131.00
• Price Target Upside: -6.16% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: 131.00 ▼(-6.16% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenue and profitability, and a negative cash flow. Technical analysis suggests a neutral to slightly bearish trend, with potential oversold conditions. Valuation metrics are unfavorable due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Business Model Strength

The company's focus on renewable energy and eco-friendly solutions positions it well in a growing industry, appealing to environmentally conscious consumers.

Market Diversification

By catering to residential, agricultural, and small business sectors, Homebiogas reduces dependency on a single market, enhancing resilience against sector-specific downturns.

Debt Management

A low debt-to-equity ratio suggests prudent financial management, providing flexibility to invest in growth opportunities without over-leveraging.

Negative Factors

Revenue Decline

Declining revenue signals challenges in market penetration or product demand, potentially impacting long-term growth and profitability.

Negative Cash Flow

Negative cash flow from operations can strain liquidity, limiting the company's ability to invest in growth initiatives and meet financial obligations.

Profitability Challenges

Operating at a loss with declining margins suggests inefficiencies in cost management and pricing strategies, which could hinder future profitability.

Homebiogas Business Overview & Revenue Model

Company Description

Homebiogas (HMGS) is a company operating in the renewable energy sector, specializing in the development and sale of small-scale biogas systems. These systems convert organic waste into clean energy and biofertilizer, offering sustainable solutions for households, farms, and small businesses. Homebiogas focuses on providing an eco-friendly alternative to traditional waste disposal and energy generation methods, thereby promoting environmental sustainability and reducing carbon footprints.

How the Company Makes Money

Homebiogas generates revenue primarily through the sale of its biogas systems, which are designed for various customer segments including residential users, farmers, and small business owners. The company offers different models of its biogas systems tailored to the needs of these diverse segments, thereby broadening its market reach. Additionally, Homebiogas may engage in partnerships with governmental and non-governmental organizations to promote clean energy solutions, which can also contribute to its revenue streams. The company might also earn money by offering maintenance services, system upgrades, and accessories for its biogas units. Furthermore, Homebiogas could explore educational and training services related to sustainable energy practices, adding another potential source of income.

Homebiogas Financial Statement Overview

Summary

Homebiogas is facing financial challenges with declining revenue and profitability, alongside a weakening balance sheet and negative cash flow. The company needs to focus on improving its revenue generation and cost efficiency to stabilize its financial position and ensure long-term sustainability.

Income Statement

Homebiogas has experienced a decline in revenue from 2023 to 2024, indicating a negative growth trend. The gross profit margin has also decreased, and the company is currently operating at a loss, as evidenced by negative net profit and EBIT margins. These factors suggest challenges in achieving profitability and effective cost management.

Balance Sheet

The company's debt-to-equity ratio is relatively low, indicating a conservative use of debt. However, a significant decline in total assets and stockholders' equity from 2023 to 2024 suggests a weakening balance sheet. The equity ratio remains moderate but reflects the need for improved asset utilization and equity management.

Cash Flow

Homebiogas has shown a negative operating cash flow, indicating challenges in generating cash from operations. The free cash flow remains negative, though slightly improved from the previous year. The cash flow management needs to be enhanced to support sustainable growth and financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.96M	2.63M	4.83M	4.70M	2.48M	1.02M
Gross Profit	518.00K	384.00K	1.55M	1.34M	234.00K	-488.00K
EBITDA	-9.09M	-8.23M	-9.91M	-14.00M	-7.64M	-4.08M
Net Income	-10.03M	-9.42M	-11.34M	-15.16M	-8.31M	-4.22M
Balance Sheet
Total Assets	14.42M	8.21M	19.43M	19.62M	33.58M	8.94M
Cash, Cash Equivalents and Short-Term Investments	4.70M	2.84M	9.14M	11.20M	26.05M	6.77M
Total Debt	1.60M	470.00K	1.95M	1.64M	1.99M	260.00K
Total Liabilities	4.52M	3.23M	5.39M	5.23M	5.49M	2.59M
Stockholders Equity	9.90M	4.93M	14.04M	14.39M	28.09M	6.36M
Cash Flow
Free Cash Flow	-9.12M	-5.54M	-11.13M	-12.77M	-10.72M	-3.66M
Operating Cash Flow	-8.53M	-4.51M	-10.58M	-11.57M	-8.33M	-3.56M
Investing Cash Flow	-1.08M	-847.00K	-571.00K	-1.13M	-2.49M	492.00K
Financing Cash Flow	-706.00K	-639.00K	9.28M	-419.00K	28.77M	9.23M

Homebiogas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 139.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:HMGS, the sentiment is Positive. The current price of 139.6 is above the 20-day moving average (MA) of 137.05, above the 50-day MA of 139.08, and below the 200-day MA of 142.46, indicating a neutral trend. The MACD of 1.03 indicates Negative momentum. The RSI at 54.91 is Neutral, neither overbought nor oversold. The STOCH value of 47.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:HMGS.

Homebiogas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.27B	7.60	4.09%	5.25%	4.03%	-61.87%
HMGS	45 Neutral	39.02M	―		―	―	―
SNFL	―	328.57M	29.57		―	―	―
GPGB.M	―	188.11M	―		―	―	―
TOEN	―	415.22M	25.22		5.51%	―	―
PRIM	―	538.67M	―		―	―	―
TURB	―	345.34M	―		―	―	―

Homebiogas Corporate Events

Homebiogas Announces Employee Options Grant, Increasing Securities

Homebiogas Ltd announced a change in the number and register of its securities holders due to the granting of options to employees, which resulted in an increase of 224,500 securities. These options, granted without consideration, can be exercised from January 2026 over a ten-year period, generating an additional exercise amount of 336,750 NIS. The securities will not be registered for trading, impacting the company’s available securities and potentially influencing its market positioning.

Homebiogas Corrects Option Allocation Report

Homebiogas Ltd has announced a corrective report related to the allocation of options to its chairman, initially reported incorrectly due to a human error. The company specified changes to its securities register, particularly distinguishing unregistered options into separate series, affecting the balance of registered holders like Altshuler Shaham Trusts Ltd. The adjustments involve granting options without consideration, with securities exercisable from January 2026 over a ten-year period, and are part of a continuation from a previous private offering.