NET Power (NPWR) AI Stock Analysis

• Market Cap: $586.46M
• Dividend Yield: N/A
• Average Volume (3M): 2.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: -100.00%
• EPS Growth: -7118.27%
• Country: US
• Employees: 68
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -5.28
• Shares Outstanding: 83,919,754
• 10 Day Avg. Volume: 1,607,418
• 30 Day Avg. Volume: 2,029,551
• PEG Ratio: 0.25
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 3109.10
• P/FCF Ratio: -7.75
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -4.94
• Enterprise Value/Ebitda: -0.23
• 1Y Price Target: $4.00
• Price Target Upside: 40.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -1.38
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $3.00 ▲(5.26% Upside)

NET Power's overall stock score reflects significant challenges in financial performance and valuation, with ongoing losses and negative cash flow. Technical indicators suggest a bearish trend, although the earnings call indicates strategic initiatives that could improve future prospects. The company's strong equity position provides some stability, but operational and profitability improvements are crucial.

Positive Factors

Strategic Partnerships

The partnership with Entropy enhances NET Power's ability to scale clean energy projects, leveraging proven technologies to meet rising power demands, which strengthens its competitive position in the clean energy market.

Market Leadership in Clean Energy

NET Power's focus on oxy-combustion technology positions it as a leader in low-carbon power generation, aligning with global trends towards sustainable energy and potentially securing a competitive edge in the market.

Financial Stability

A strong equity base provides NET Power with financial stability and the potential for future borrowing, supporting long-term growth and investment in new projects.

Negative Factors

Negative Profitability

Persistent negative profitability indicates operational inefficiencies, which could hinder NET Power's ability to sustain growth and invest in new technologies over the long term.

High Project Costs

Rising costs for new technology deployment could strain financial resources and delay project timelines, impacting NET Power's ability to achieve its strategic goals efficiently.

Long Commercialization Timeline

The extended timeline for commercializing oxy-combustion technology may delay revenue generation and market impact, posing a risk to NET Power's growth strategy and competitive positioning.

NET Power Business Overview & Revenue Model

Company Description

NET Power (NPWR) is an innovative energy company focused on transforming the way electricity is generated. Utilizing its proprietary Allam Cycle technology, NET Power aims to produce low-cost, zero-emission natural gas power. The company operates primarily in the energy sector, targeting the growing demand for clean energy solutions by providing reliable and sustainable power generation options. With its focus on reducing carbon emissions while maintaining efficiency, NET Power is positioned at the forefront of the transition to a more sustainable energy future.

How the Company Makes Money

NET Power generates revenue primarily through the sale of electricity produced from its Allam Cycle power plants. The company partners with utilities and energy companies to develop and operate these plants, receiving payments for the energy generated. Additionally, NET Power may enter into long-term power purchase agreements (PPAs) that secure revenue over extended periods. The company also benefits from potential licensing agreements for its technology, allowing other firms to implement its Allam Cycle technology in their operations. Partnerships with key industry players enhance its market reach and facilitate investments in new projects, contributing to its overall revenue streams.

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 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	250.00K	175.00K	580.00K	2.10M	45.00K
Gross Profit	-63.07M	-1.71M	-932.00K	305.00K	1.27M	8.00K
EBITDA	-1.33B	-167.03M	-118.97M	-36.64M	-24.97M	-23.39M
Net Income	-593.31M	-49.19M	-77.23M	-54.78M	-38.29M	-36.40M
Balance Sheet
Total Assets	629.89M	2.29B	2.47B	78.14M	348.37M	107.08M
Cash, Cash Equivalents and Short-Term Investments	365.39M	507.57M	636.93M	5.16M	2.57M	12.78M
Total Debt	4.01M	3.10M	2.15M	786.00K	7.01M	0.00
Total Liabilities	47.41M	131.93M	142.30M	13.73M	42.32M	8.50M
Stockholders Equity	143.76M	655.60M	785.01M	64.40M	306.44M	98.58M
Cash Flow
Free Cash Flow	-151.81M	-101.50M	-60.65M	-16.75M	-1.33M	-25.20M
Operating Cash Flow	-105.95M	-31.65M	-49.00M	-16.63M	-1.33M	-24.98M
Investing Cash Flow	-45.94M	-168.67M	-103.70M	-115.00K	-345.03M	-220.00K
Financing Cash Flow	-5.00M	-4.93M	335.39M	21.47M	348.93M	29.00M

NET Power Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.85
• 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 NPWR, the sentiment is Negative. The current price of 2.85 is below the 20-day moving average (MA) of 3.11, below the 50-day MA of 3.35, and below the 200-day MA of 3.09, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 48.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NPWR.

NET Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWEN	65 Neutral	$50.46M	―	8.20%	―	-1.47%	52.65%
NPO	64 Neutral	$4.73B	55.20	5.80%	0.54%	6.44%	101.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNRC	59 Neutral	$8.73B	28.33	12.38%	―	5.52%	9.03%
PSIX	58 Neutral	$1.25B	10.33	118.50%	―	54.78%	122.61%
NPWR	49 Neutral	$586.46M	―	-130.22%	―	-100.00%	-7118.27%
CETY	42 Neutral	$10.68M	―	-82.18%	―	-57.40%	52.85%

NET Power Corporate Events

NET Power Inc. Earnings Call Highlights Progress and Challenges

The latest earnings call from NET Power Inc. conveyed a cautiously optimistic sentiment, highlighting strides in cost reduction and technological integration. The company is making significant progress, particularly with the integration of gas turbines, which positions it well for future deployment. However, challenges such as high initial costs and extended commercialization timelines persist. The integration strategy aligns with market needs, offering a pathway to decarbonization and positioning NET Power as a flexible solution provider.