Homebiogas (HMGS) AI Stock Analysis

• Market Cap: ₪31.20M
• Dividend Yield: N/A
• Average Volume (3M): 182.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -4.02%
• EPS Growth: 44.85%
• Country: IL
• Employees: 69
• Sector: Energy
• Sector Strength: 52
• Industry: Renewable Utilities
• EPS (TTM): -10.10
• Shares Outstanding: 28,336,428
• 10 Day Avg. Volume: 222,381
• 30 Day Avg. Volume: 182,002
• PEG Ratio: 0.10
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 7.25
• P/FCF Ratio: -3.44
• 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: 40 Underperform
• Price Target: 105.00 ▼(-23.02% Downside)

The score is primarily constrained by weak financial performance (declining revenue, losses, and negative operating/free cash flow) and a weakening balance sheet despite low leverage. Technicals are bearish with the price below major moving averages, though oversold signals provide only limited support. Valuation is also pressured by the negative P/E, reflecting unprofitable operations.

Positive Factors

Decentralized waste-to-energy product

HomeBiogas's core product converts organic waste into usable biogas and fertilizer for residential, agricultural, humanitarian and off-grid customers. That product-market fit targets persistent structural needs—clean cooking, fertilizer and energy access—supporting steady demand across diverse end markets.

Conservative capital structure (low leverage)

Low debt-to-equity means the company carries limited financial leverage, reducing solvency risk and interest burden. This conservative capital structure gives management flexibility to pursue product development or distribution expansion without immediate refinancing pressure, a durable balance-sheet advantage.

Improving EPS and cash flow trend

A notable year-over-year EPS improvement and a slight improvement in free cash flow signal early operational leverage and progress on cost or pricing execution. If continued, these trends support a path to profitability and self-funded growth over the medium term rather than persistent capital raises.

Negative Factors

Declining revenue trend

A falling top line reduces scale benefits and makes fixed-cost absorption harder, pressuring margins and unit economics. Persistent revenue decline limits reinvestment capacity, weakens negotiating leverage with distributors, and can slow adoption in target off-grid and institutional channels over several months.

Negative operating and free cash flow

Negative operating and free cash flow means the business burns cash to run operations and growth. This reduces runway, forces reliance on external financing or equity raises, and constrains investments in distribution, inventory and product development—creating a structural growth headwind.

Weakening balance sheet (falling assets & equity)

Material declines in assets and equity erode the balance-sheet buffer that absorbs operational shocks and supports borrowing. A weaker equity base limits capacity to finance working capital or larger humanitarian/project sales, increasing vulnerability to demand or supply interruptions in the medium term.

Homebiogas Business Overview & Revenue Model

Company Description

HomeBiogas LTD develops, produces, and markets biogas systems for treatment of organic waste into clean energy for households, farmers, businesses, and communities worldwide. The company offers HomeBiogas 2, a biogas system that recycles food scraps into free clean cooking gas and fertilizers, as well as creates renewable energy; HomeBiogas 4, recycles organic waste into renewable energy; and HomeBiogas 7, which converts manure into renewable energy and liquid fertilizers. It also provides additional products, such as countertop biogas stoves, maintenance kits, sink covers, built-in biogas stoves, filter kits, probiotic tablets, bio-toilet kits, and gas bags. The company also operates an online shop for its products. HomeBiogas LTD was incorporated in 2012 and is headquartered in Beit Yanai, Israel.

How the Company Makes Money

Homebiogas generates revenue through the sale of its biogas systems, which include both residential and commercial units designed for converting organic waste into biogas and fertilizer. The company offers various models tailored to different customer needs, including sizes suitable for single households to larger operations. Additionally, HMGS may earn income through installation services, maintenance contracts, and educational programs that promote sustainable practices. Strategic partnerships with environmental organizations, government agencies, and renewable energy initiatives further enhance its market presence and can lead to collaborative projects that provide additional funding or subsidies, contributing to overall earnings.

Homebiogas Financial Statement Overview

Summary

Income statement and cash flow are weak: revenue declined from 2023 to 2024, margins deteriorated, and the company is operating at a loss with negative operating and free cash flow. The balance sheet is mixed—low debt-to-equity helps, but total assets and equity fell meaningfully year over year, signaling a weakening financial position.

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	2.92M	2.63M	4.83M	4.70M	2.48M	1.02M
Gross Profit	697.00K	384.00K	1.55M	1.34M	234.00K	-488.00K
EBITDA	-3.79M	-8.23M	-9.91M	-14.00M	-7.64M	-4.08M
Net Income	-5.66M	-9.42M	-11.34M	-15.16M	-8.31M	-4.22M
Balance Sheet
Total Assets	7.03M	8.21M	19.43M	19.62M	33.58M	8.94M
Cash, Cash Equivalents and Short-Term Investments	2.57M	2.84M	9.14M	11.20M	26.05M	6.77M
Total Debt	434.00K	470.00K	1.95M	1.64M	1.99M	260.00K
Total Liabilities	2.20M	3.23M	5.39M	5.23M	5.49M	2.59M
Stockholders Equity	4.77M	4.93M	14.04M	14.39M	28.09M	6.36M
Cash Flow
Free Cash Flow	-1.62M	-5.54M	-11.13M	-12.77M	-10.72M	-3.66M
Operating Cash Flow	-1.61M	-4.51M	-10.58M	-11.57M	-8.33M	-3.56M
Investing Cash Flow	32.00K	-847.00K	-571.00K	-1.13M	-2.49M	492.00K
Financing Cash Flow	39.00K	-639.00K	9.28M	-419.00K	28.77M	9.23M

Homebiogas Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 136.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:HMGS, the sentiment is Negative. The current price of 136.4 is above the 20-day moving average (MA) of 125.20, above the 50-day MA of 130.77, and above the 200-day MA of 135.23, indicating a bearish trend. The MACD of -4.85 indicates Positive momentum. The RSI at 34.72 is Neutral, neither overbought nor oversold. The STOCH value of 9.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TOEN	59 Neutral	₪468.22M	36.02	―	5.36%	―	―
HMGS	40 Underperform	₪31.20M	-1.30	―	―	-4.02%	44.85%