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Montauk Renewables (MNTK)
NASDAQ:MNTK
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Montauk Renewables
(NASDAQ:MNTK)
63Neutral
Montauk Renewables (MNTK) vs. S&P 500 (SPY)
Market Cap
$306.74M
Dividend YieldN/A
Average Volume (3M)211.52K
Price to Earnings (P/E)31.3
Beta (1Y)1.51
Revenue Growth0.48%
EPS Growth-35.01%
CountryUS
Employees166
SectorUtilities
Sector Strength97
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.00
Shares Outstanding143,336,670
10 Day Avg. Volume133,506
30 Day Avg. Volume211,524
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.91
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.33Price Target Upside42.92% Upside
Rating ConsensusHold
Number of Analyst Covering3
Montauk Renewables Business Overview & Revenue Model
Company DescriptionMontauk Renewables, Inc. is a leading company in the renewable energy sector, specializing in the recovery and processing of biogas from landfills and other waste sources into renewable energy products. The company operates mainly in the United States and focuses on the development and operation of renewable natural gas (RNG) projects. Montauk Renewables is committed to sustainable practices and reducing greenhouse gas emissions by transforming waste into valuable clean energy solutions.
How the Company Makes MoneyMontauk Renewables makes money primarily through the production and sale of renewable natural gas (RNG). The company captures methane from landfills and agricultural waste, processes it into RNG, and then sells it to utilities and other customers as a substitute for conventional natural gas. Key revenue streams include long-term purchase agreements with utilities and other end-users, as well as the generation and sale of environmental credits, such as Renewable Identification Numbers (RINs) and Low Carbon Fuel Standard (LCFS) credits. These credits are sold to companies that need to comply with regulatory requirements for renewable energy usage. Strategic partnerships with waste management companies and municipalities also play a significant role in securing feedstock and expanding project portfolios, thereby contributing to the company's earnings.
Montauk Renewables Financial Statement Overview
Summary
Montauk Renewables shows a mix of strengths and challenges. Operational efficiency and financial stability are evident, but the company faces revenue volatility and free cash flow deficits. Low leverage and solid cash flow generation provide stability; however, capital management and revenue growth are critical for future success.Income Statement
Montauk Renewables shows a volatile revenue trend with a sharp decline in 2024, offsetting previous growth. Gross profit margins are unavailable, but EBIT and EBITDA margins improved in 2024, indicating operational efficiency. The net profit margin is positive but has decreased from prior years, suggesting some profitability challenges.―
Balance Sheet
The balance sheet is strong with a low Debt-to-Equity ratio, indicating low leverage and financial stability. ROE is positive but has fluctuated over the years, reflecting varying profitability. The equity ratio shows a high level of equity financing, which is healthy for long-term sustainability.75
Cash Flow
Operating cash flow is robust, consistently covering net income. However, free cash flow is negative in the latest period due to high capital expenditures, which could impact liquidity. The company shows a strong capacity to generate operating cash, but free cash flow trends need monitoring.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 61.00K | 174.90M | 205.56M | 148.13M | 100.38M | Gross Profit |
| 0.00 | 80.28M | 104.13M | 69.97M | 38.64M | EBIT |
| 16.12M | 23.64M | 44.57M | 4.75M | -390.00K | EBITDA |
| 40.97M | 45.12M | 65.73M | 25.43M | 25.06M | Net Income Common Stockholders |
| 9.73M | 14.95M | 35.19M | -4.53M | 4.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 45.62M | 73.81M | 105.18M | 53.27M | 20.99M | Total Assets |
| 349.01M | 350.24M | 332.32M | 286.48M | 253.36M | Total Debt |
| 19.15M | 68.09M | 76.22M | 79.53M | 66.36M | Net Debt |
| -26.47M | -5.72M | -28.95M | 26.26M | 45.37M | Total Liabilities |
| 91.60M | 100.00M | 105.22M | 104.19M | 93.73M | Stockholders Equity |
| 257.42M | 250.24M | 227.09M | 182.29M | 159.62M |
| Cash Flow | Free Cash Flow | |||
| -18.53M | -22.04M | 58.79M | 32.89M | 11.04M | Operating Cash Flow |
| 43.80M | 41.05M | 81.07M | 42.88M | 28.68M | Investing Cash Flow |
| -62.19M | -63.09M | -20.79M | -19.47M | -15.99M | Financing Cash Flow |
| -9.84M | -9.33M | -8.28M | 8.65M | -1.50M |
Montauk Renewables Technical Analysis
Neutral
2.33
Price Trends
2.34
Negative
3.27
Negative
4.10
Negative
Market Momentum
-0.04
Negative
53.81
Neutral
62.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNTK, the sentiment is Neutral. The current price of 2.33 is above the 20-day moving average (MA) of 2.16, below the 50-day MA of 2.34, and below the 200-day MA of 4.10, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 53.81 is Neutral, neither overbought nor oversold. The STOCH value of 62.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MNTK.
Montauk Renewables Risk Analysis
Montauk Renewables disclosed 48 risk factors in its most recent earnings report. Montauk Renewables reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Montauk Renewables Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $5.84B | 3.99 | 28.91% | 15.55% | -0.03% | 14.25% | |
77 Outperform | $5.90B | 11.80 | 9.47% | 5.06% | -4.45% | 9.86% | |
69 Neutral | $4.43B | 15.62 | 8.13% | 4.25% | 3.28% | -3.49% | |
64 Neutral | $3.80B | 21.11 | 6.34% | 4.33% | -11.15% | -23.41% | |
63 Neutral | $8.51B | 10.86 | 5.35% | 4.36% | 3.73% | -11.28% | |
63 Neutral | $306.74M | 31.33 | 3.83% | ― | 0.48% | -35.01% | |
52 Neutral | $7.43B | 5.60 | 29.79% | 6.73% | -3.22% | 141.11% |
* Utilities Sector Average
Performance Comparison
MNTK
Montauk Renewables
2.33
-2.34
-50.11%
ALE
Allete
65.49
5.03
8.32%
BKH
Black Hills
58.87
4.31
7.90%
CIG
Companhia Energetica Minas Gerais
1.92
0.20
11.63%
ELP
Companhia Paranaense de Energia Pfd
8.30
1.62
24.25%
AES
AES
10.82
-8.42
-43.76%
Montauk Renewables Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q1-2025)
| % Change Since: -18.25%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with revenue and RIN sales growth but faced significant challenges with decreased RIN pricing, operating income, and recorded a net loss. Regulatory uncertainties and impairments also posed challenges.Q1-2025 Updates
Positive Updates
Revenue Increase
Total revenues in the first quarter of 2025 were $42.6 million, an increase of $3.8 million, or 9.8%, compared to $38.8 million in the first quarter of 2024.
RIN Sales Increase
Montauk self-marketed 9.9 million RINs, a 25.3% increase compared to 7.9 million RINs self-marketed during the first quarter of 2024.
Renewable Natural Gas Segment Revenue Growth
Revenues from the Renewable Natural Gas segment during the first quarter of 2025 were $38.5 million, an increase of $4.5 million or 13.1% compared to $34.0 million during the first quarter of 2024.
Cost Reduction in General and Administrative Expenses
Total general and administrative expenses were $8.8 million for the first quarter of 2025, a decrease of $0.7 million, or 7.1%, compared to $9.4 million in the first quarter of 2024.
North Carolina Swine Project Development
Montauk's development efforts in North Carolina continue in full force with an expectation to commence significant production and revenue generation activities in 2026.
Negative Updates
Decrease in RIN Pricing
Average pricing realized in RIN sales during the first quarter of 2025 was $2.46 compared to $3.25 during the first quarter of 2024, a decrease of 24.3%.
Operating Income Decline
Operating income for the first quarter of 2025 was $0.4 million, a decrease of $2.0 million compared to operating income of $2.4 million in the first quarter of 2024.
Net Loss Recorded
Net loss for the first quarter of 2025 was $0.5 million, a decrease of $2.3 million as compared to net income of $1.9 million for the first quarter of 2024.
Impairment Charges
Reported impairment of $2.0 million in the first quarter of 2025, an increase of $1.5 million compared to $0.5 million in the first quarter of 2024, primarily related to RNG equipment design at the Blue Granite RNG project.
Decrease in Renewable Electricity Generation
Produced approximately 46,000 megawatt hours in renewable electricity during the first quarter of 2025, a decrease of approximately 8,000 megawatt hours, or 14.8%, compared to 54,000 megawatt hours during the first quarter of 2024.
Company Guidance
During the Montauk Renewables earnings call, significant guidance was provided concerning their 2025 outlook and operational developments. The company reaffirmed their full-year 2025 outlook, expecting RNG production volumes to range between 5.8 million MMBtu and 6 million MMBtu, generating revenues between $150 million and $170 million. Meanwhile, renewable electricity production is anticipated to range from 178,000 to 186,000 megawatt hours, with revenues between $17 million and $18 million. The call highlighted the impact of regulatory uncertainties, such as the EPA's Renewable Fuel Standard compliance delay, on the renewable natural gas industry. Montauk emphasized its financial stability, citing a $200 million credit facility and a cash position of $40.1 million as of March 31, 2025. They also detailed various projects, including the North Carolina swine waste-to-energy development, which is expected to commence production and revenue generation activities in 2026. Additionally, Montauk is advancing multiple biogenic CO2 projects, enhancing their diversified portfolio in renewable energy solutions.Montauk Renewables Corporate Events
Executive/Board Changes
Montauk Renewables Board Restructures with Director Resignation
Neutral
Feb 14, 2025
On February 14, 2025, Montauk Renewables announced that Michael Jacobson resigned from its Board of Directors, and the board size was reduced from seven to six members. Yunis Shaik, an existing board member, was appointed to the Audit Committee and deemed independent by NASDAQ standards, indicating a smooth transition and adherence to governance standards.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.