Montauk Renewables (MNTK) AI Stock Analysis

• Market Cap: $260.33M
• Dividend Yield: N/A
• Average Volume (3M): 163.40K
• Price to Earnings (P/E): 97.9
• Beta (1Y): 1.54
• Revenue Growth: -1.78%
• EPS Growth: -85.80%
• Country: US
• Employees: 166
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Diversified Utilities
• EPS (TTM): -0.04
• Shares Outstanding: 142,256,620
• 10 Day Avg. Volume: 195,531
• 30 Day Avg. Volume: 163,404
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 4.53
• Enterprise Value/Ebitda: 9.40
• 1Y Price Target: $3.50
• Price Target Upside: 91.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 55 Neutral
• Price Target: $2.00 ▲(9.29% Upside)

Montauk Renewables' overall stock score reflects a combination of mixed financial performance, bearish technical indicators, and high valuation concerns. The earnings call provided balanced insights, with both positive strategic developments and significant operational challenges. The stock's current technical and valuation metrics suggest caution.

Montauk Renewables Business Overview & Revenue Model

Company Description

Montauk Renewables, Inc., a renewable energy company, engages in recovery and processing of biogas from landfills and other non-fossil fuel sources. It operates in two segments, Renewable Natural Gas and Renewable Electricity Generation. The company develops, owns, and operates renewable natural gas (RNG) projects that capture methane and prevents it from being released into the atmosphere by converting it into either RNG or electrical power for the electrical grid. Its customers for RNG and renewable identification numbers (RIN) include long-term owner-operators of landfills and livestock farms, local utilities, and refiners in the natural gas and refining sectors. The company was founded in 1980 and is headquartered in Pittsburgh, Pennsylvania.

How the Company Makes Money

Montauk Renewables generates revenue through the production and sale of renewable natural gas (RNG) and renewable electricity, which are derived from biogas collected from landfills and other agricultural sources. The company benefits from various environmental credits and incentives provided by governmental and regulatory bodies aimed at promoting clean energy. Montauk also engages in long-term partnerships and contracts with utility companies and other energy consumers to ensure a stable and consistent revenue stream. A significant portion of its earnings is derived from state and federal programs such as the Renewable Fuel Standard (RFS) in the U.S., which mandates the inclusion of renewable fuels in transportation fuel.

Montauk Renewables Financial Statement Overview

Summary

Montauk Renewables shows a mixed financial performance. While the balance sheet indicates better financial leverage management with improved debt-to-equity ratio and increased stockholders' equity, income and cash flow statements reveal declining profitability and cash generation. Challenges in maintaining revenue growth and negative free cash flow highlight potential liquidity issues.

Income Statement

Montauk Renewables shows a decreasing trend in revenue and net income, indicating challenges in maintaining growth. Gross profit margin is stable but has declined from previous years, reflecting potential cost pressures. The EBIT and EBITDA margins are also on a downward trajectory, suggesting decreasing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved, indicating better financial leverage management. Stockholders' equity has increased over the years, contributing to a stronger equity ratio, which suggests a solid financial foundation. However, the reduction in cash and cash equivalents may pose liquidity concerns.

Cash Flow

Montauk Renewables faces challenges in cash generation, as indicated by negative free cash flow in recent periods. Operating cash flow remains positive but is not sufficient to cover capital expenditures, highlighting potential risks in sustaining operations without additional financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	175.74M	174.90M	205.56M	148.13M	100.38M
Gross Profit	77.57M	80.28M	104.13M	69.97M	38.64M
EBITDA	40.97M	45.12M	65.73M	25.43M	25.06M
Net Income	9.73M	14.95M	35.19M	-4.53M	4.60M
Balance Sheet
Total Assets	349.01M	350.24M	332.32M	286.48M	253.36M
Cash, Cash Equivalents and Short-Term Investments	45.62M	73.81M	105.18M	53.27M	20.99M
Total Debt	62.91M	68.09M	76.22M	79.53M	66.36M
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

• Technical Analysis Sentiment: Negative
• Last Price: 1.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNTK, the sentiment is Negative. The current price of 1.83 is below the 20-day moving average (MA) of 2.16, below the 50-day MA of 2.19, and below the 200-day MA of 3.17, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 42.83 is Neutral, neither overbought nor oversold. The STOCH value of 20.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MNTK.

Montauk Renewables Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELP	79 Outperform	$6.47B	12.51	9.81%	6.21%	-5.28%	14.50%
CIG	75 Outperform	$6.36B	4.37	26.38%	4.68%	-4.14%	13.02%
BKH	72 Outperform	$4.40B	15.22	8.13%	4.35%	5.41%	-1.89%
ALE	69 Neutral	$3.82B	20.78	6.46%	4.36%	-0.44%	-17.46%
AES	64 Neutral	$9.11B	9.04	21.17%	5.42%	-3.19%	30.48%
MNTK	55 Neutral	$260.33M	97.86	1.04%	―	-1.78%	-85.80%
Sector *	44 Neutral	C$923.76M	-8.73	-0.23%	2.68%	20.48%	-40.65%

Montauk Renewables Corporate Events

Montauk Renewables Holds 2025 Annual Stockholders Meeting

On May 22, 2025, Montauk Renewables, Inc. conducted its 2025 Annual Meeting of Stockholders, where two director nominees, Theventheran G. Govender and Yunis Shaik, were elected to the Board for terms expiring in 2028. Additionally, the stockholders ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, indicating continued confidence in the company’s financial oversight.

The most recent analyst rating on (MNTK) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Montauk Renewables stock, see the MNTK Stock Forecast page.