NET Power (NPWR) AI Stock Analysis

• Market Cap: $633.10M
• Dividend Yield: N/A
• Average Volume (3M): 1.88M
• Price to Earnings (P/E): 43.6
• Beta (1Y): 1.04
• Revenue Growth: 100.00%
• EPS Growth: 6.28%
• Country: US
• Employees: 68
• Sector: Industrials
• Sector Strength: 94
• Industry: Industrial - Machinery
• EPS (TTM): -1.55
• Shares Outstanding: 77,726,850
• 10 Day Avg. Volume: 2,000,474
• 30 Day Avg. Volume: 1,883,533
• PEG Ratio: -1.89
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.95
• Enterprise Value/Market Cap: -0.11
• Enterprise Value/Revenue: -101.41
• Enterprise Value/Gross Profit: 1.71
• Enterprise Value/Ebitda: 0.12
• 1Y Price Target: $2.00
• Price Target Upside: -30.80% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: $3.00 ▲(3.81%Upside)

The overall score is primarily influenced by the company's financial challenges and market valuation concerns, despite strong strategic focus and technical momentum. The financial performance highlights the need for improving profitability, while positive earnings call sentiment gives a slight boost.

Positive Factors

Liquidity and Partnerships

An attractive entry point exists due to approximately $533M in liquidity, a runway of about three years, and well-resourced partners, positioning the company to pursue large power generation opportunities.

Strategic Partnerships

Longer-term oriented strategic partners may provide follow-on support to sustain the company's mission, with around three years of liquidity available to raise additional capital.

Negative Factors

Cost Pressures

Rising cost estimates for Project Permian are driven by increased expenses in natural gas purification, transportation, labor, and cooling systems.

Funding Challenges

There is a crucial funding shortfall of $600-900M for Project Permian, and securing this financing is essential for the project's final investment decision.

Stock Performance

NPWR stock experienced a significant decline of approximately 60%, likely influenced by cost inflation and new concerns about liquidity.

NET Power Business Overview & Revenue Model

Company Description

NET Power (NPWR) is an energy technology company focused on the development and commercialization of clean and efficient natural gas power plants. The company utilizes its proprietary Allam Cycle technology, which aims to generate electricity without emitting carbon dioxide into the atmosphere, making it a leader in sustainable energy solutions.

How the Company Makes Money

NET Power makes money by licensing its Allam Cycle technology to power plant developers and operators around the world. The company also generates revenue through strategic partnerships and joint ventures with energy companies seeking to implement NET Power's carbon-neutral technology in their operations. Additionally, NET Power may earn income from engineering services and technical support provided to its partners to facilitate the integration and optimization of its technology. The company's revenue model is significantly influenced by the growing demand for clean energy solutions and regulatory pressures to reduce carbon emissions.

NET Power Financial Statement Overview

Summary

NET Power shows potential for growth with increased revenue, but persistent negative profitability and cash flow challenges raise concerns about operational efficiency and long-term viability. The company’s strong equity position provides some financial stability, but improvements in profitability and cash management are essential.

Income Statement

NET Power has experienced inconsistent revenue growth, with a marked increase in total revenue from 2023 to 2024. However, the company has struggled with negative net income and gross profit margins over multiple years, indicating ongoing profitability challenges. The negative EBIT and EBITDA margins further highlight the operational inefficiencies that need addressing.

Balance Sheet

The company maintains a solid equity base with a high equity ratio, suggesting financial stability. However, the negative net income has led to low return on equity (ROE), which indicates inefficient use of equity capital. The debt-to-equity ratio remains low, suggesting low leverage and potential for future borrowing if needed.

Cash Flow

While NET Power has improved its free cash flow position from 2023 to 2024, the operating cash flow remains negative, which is concerning for long-term sustainability. The free cash flow to net income ratio is unavailable due to negative net income, which complicates the assessment of cash flow efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	250.00K	175.00K	580.00K	2.10M	45.00K
Gross Profit	219.00K	-50.67M	290.00K	1.27M	8.00K
EBITDA	-99.70M	-130.86M	-36.64M	-10.19M	-23.39M
Net Income	-49.19M	-77.23M	-54.78M	-9.80M	-36.40M
Balance Sheet
Total Assets	2.29B	2.47B	351.85M	348.37M	107.08M
Cash, Cash Equivalents and Short-Term Investments	507.57M	636.93M	1.63M	2.57M	12.78M
Total Debt	3.10M	2.15M	786.00K	7.01M	0.00
Total Liabilities	131.93M	140.14M	41.57M	42.32M	8.50M
Stockholders Equity	655.60M	785.01M	310.51M	306.44M	98.58M
Cash Flow
Free Cash Flow	-100.30M	-60.65M	-972.53K	-1.33M	-25.20M
Operating Cash Flow	-31.65M	-49.00M	-857.53K	-1.33M	-24.98M
Investing Cash Flow	-168.67M	-103.70M	-115.00K	-345.03M	-220.00K
Financing Cash Flow	-4.93M	335.39M	21.47M	348.93M	29.00M

NET Power Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPWR, the sentiment is Positive. The current price of 2.89 is above the 20-day moving average (MA) of 2.85, above the 50-day MA of 2.41, and below the 200-day MA of 6.07, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 54.10 is Neutral, neither overbought nor oversold. The STOCH value of 21.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NPWR.

NET Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSIX	77 Outperform	$1.92B	23.61	185.56%	―	17.92%	173.25%
AMSC	70 Neutral	$1.87B	277.34	3.53%	―	52.99%	―
Sector *	68 Neutral	€2.79B	22.92	7.73%	2.81%	-1.29%	-31.61%
NPWR	53 Neutral	$633.10M	43.62	-24.23%	―	100.00%	6.28%
CETY	48 Neutral	$16.00M	―	-90.36%	―	-87.59%	51.14%
BW	47 Neutral	$101.36M	―	29.28%	―	-29.45%	39.40%
NNE	35 Underperform	$1.53B	―	-45.55%	―	―	―

NET Power Corporate Events

NET Power Board Member Eunkyung Sung Resigns

On July 10, 2025, Eunkyung Sung resigned from the board of directors of NET Power Inc., effective immediately. Her resignation was not due to any disagreement with the company’s management or board.

The most recent analyst rating on (NPWR) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on NET Power stock, see the NPWR Stock Forecast page.

NET Power Announces New Chief Accounting Officer

On June 6, 2025, NET Power Inc. announced the departure of Kelly Rosser as Chief Accounting Officer, effective June 15, 2025, with a compensation package including salary, bonus, and healthcare coverage. Caleb Van Dolah, with extensive experience in accounting and financial reporting, will assume the role of principal accounting officer on the same date. Additionally, during the annual stockholders’ meeting on June 3, 2025, the election of three directors and the ratification of KPMG LLP as the independent registered public accounting firm were confirmed.

The most recent analyst rating on (NPWR) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on NET Power stock, see the NPWR Stock Forecast page.