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Opal Fuels Inc. (OPAL)
:OPAL
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OPAL Fuels
(NASDAQ:OPAL)
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Rating:55Neutral
Price Target:
$2.50
▼(-6.72% Downside)
The overall stock score of 55 reflects a mixed outlook for OPAL Fuels. The most significant factor is the company's financial performance, which shows stable revenue growth but faces challenges with cash flow and historical equity issues. Technical analysis provides a positive outlook with bullish momentum, while valuation concerns arise due to a high P/E ratio and lack of dividend yield. The earnings call highlights both achievements and challenges, but its impact is not included in the weighted score.
OPAL Fuels (OPAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$464.70M
Dividend YieldN/A
Average Volume (3M)345.48K
Price to Earnings (P/E)46.7
Beta (1Y)1.32
Revenue Growth12.15%
EPS Growth-22.09%
CountryUS
Employees341
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.03
Shares Outstanding28,996,178
10 Day Avg. Volume277,731
30 Day Avg. Volume345,483
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.88
Enterprise Value/Revenue2.67
Enterprise Value/Gross Profit8.51
Enterprise Value/Ebitda26.13
Forecast
1Y Price Target
$3.50Price Target Upside30.60% Upside
Rating ConsensusHold
Number of Analyst Covering1
OPAL Fuels Business Overview & Revenue Model
Company DescriptionOPAL Fuels (OPAL) is a leading provider of renewable natural gas (RNG) solutions, focusing on the production and distribution of low-carbon fuels derived from organic waste. Operating primarily in the clean energy sector, OPAL engages in the development and operation of RNG facilities, catering to various industries such as transportation and utilities that aim to reduce their carbon footprint. The company's core offerings include RNG production, carbon credit generation, and related services that support the transition toward sustainable energy practices.
How the Company Makes MoneyOPAL Fuels generates revenue through multiple streams, primarily from the production and sale of renewable natural gas (RNG). The company operates its own RNG facilities, converting organic waste into clean energy, which is then sold to utilities and other customers. Additionally, OPAL earns revenue from the sale of renewable identification numbers (RINs) and carbon credits, which are generated as a result of its RNG production. Partnerships with municipalities, agricultural businesses, and waste management companies further enhance its earnings potential by ensuring a steady supply of feedstock for RNG production. The company's strategic alliances and investments in expanding its RNG infrastructure also play a significant role in driving revenue growth.
OPAL Fuels Key Performance Indicators (KPIs)
Any
Adjusted EBITDA Breakdown
Provides a detailed look at earnings before interest, taxes, depreciation, and amortization, adjusted for specific items, to assess operational efficiency and cash flow potential.
Provides a detailed look at earnings before interest, taxes, depreciation, and amortization, adjusted for specific items, to assess operational efficiency and cash flow potential.
Data provided by:
Main Street Data
Main Street DataOPAL Fuels Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with notable achievements in production growth, inclusion in significant indices, and legislative support, but these are balanced by challenges including a decline in adjusted EBITDA, lower RIN prices, and nonrecurring expenses.Q2-2025 Updates
Positive Updates
RNG Fuel Segment Production Increase
Production in the RNG Fuel segment reached 1.2 million MMBtus, a 33% increase compared to the same period last year.
Fuel Station Services Segment EBITDA Growth
Fuel Station Services segment EBITDA was approximately $11.2 million, 30% higher compared to the second quarter of 2024.
Positive Earnings Per Share
OPAL Fuels achieved positive earnings per share in the second quarter.
Inclusion in Russell Indices
OPAL Fuels was added to the Russell 2000, Russell 2000 Value, and Russell 2000 Growth indices.
Significant Legislative Support
The passage of the One Big Beautiful Bill Act provides extensive benefits for biomethane capture and the extension of the 45Z production tax credit through 2029.
Revenue Growth
Revenue for the quarter was $80.5 million, up from $71 million in the same period last year.
Negative Updates
Adjusted EBITDA Decline
Second quarter adjusted EBITDA was $16.5 million, $4.6 million lower compared to the same period last year due to a lower RIN price environment and other factors.
Lower RIN Prices
Realized RIN price was $2.50 versus $3.13 last year, impacting the company's financial performance.
Loss of ISCC Carbon Credits
The expiration of ISCC carbon credits in the Renewable Power segment in November 2024 continues to impact results.
Nonrecurring Expenses
Increased nonrecurring expenses, including a $2 million G&A expense related to a contract restructuring, affected the quarter’s financials.
Company Guidance
During the OPAL Fuels Second Quarter 2025 earnings call, the company maintained its guidance for the year despite a challenging environment with lower RIN prices and reduced renewable power earnings. The second quarter adjusted EBITDA was $16.5 million, down $4.6 million from the previous year, while revenue was $80.5 million, up from $71 million in Q2 2024. Key highlights included a 33% increase in RNG Fuel segment production to 1.2 million MMBtus and a 30% rise in Fuel Station Services segment EBITDA to approximately $11.2 million. Additionally, OPAL completed the sale of $16.7 million in investment tax credits. The company was added to the Russell 2000 indices, with less than 20% of companies included in both Growth and Value indexes, reflecting its strong platform and growth trajectory. Despite policy uncertainties, OPAL expects positive contributions from the extension of the 45Z production tax credit through 2029, potentially adding at least $2 per MMBtu in salable tax credits for landfill RNG. Looking ahead, OPAL remains focused on executing its strategic growth objectives, with several projects under construction and a robust development pipeline, anticipating continued operational improvements and financial performance in line with annual guidance.OPAL Fuels Financial Statement Overview
Summary
OPAL Fuels shows stable revenue growth and profit margins, but faces challenges with cash flow and historical equity issues. Improved leverage management is a positive sign, yet cash flow sustainability and operational efficiency need addressing.Income Statement
OPAL Fuels shows a moderate performance in its income statement. The company has demonstrated consistent revenue growth, with a TTM revenue growth rate of 2.1%. Gross profit margin is stable at 31.3%, and the net profit margin is modest at 3.7%. However, the EBIT and EBITDA margins have decreased over time, indicating potential challenges in operational efficiency.65
Positive
Balance Sheet
The balance sheet reflects a mixed picture. The debt-to-equity ratio has improved significantly to 0.02 in the TTM period, indicating better leverage management. However, the company has faced negative equity in previous years, which poses a risk. Return on equity has improved to 7.7% in the TTM, but historical negative equity raises concerns about financial stability.45
Neutral
Cash Flow
Cash flow analysis reveals challenges, with negative free cash flow and a declining free cash flow growth rate. The operating cash flow to net income ratio is below 1, indicating potential cash flow issues. The negative free cash flow to net income ratio suggests that the company is not generating sufficient cash to cover its net income.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 327.16M | 299.97M | 256.11M | 235.53M | 166.12M | 117.71M |
| Gross Profit | 102.45M | 100.12M | 72.21M | 63.48M | 51.06M | 27.54M |
| EBITDA | 33.37M | 40.95M | 152.89M | 53.13M | 58.89M | 7.15M |
| Net Income | 12.06M | 11.03M | 29.95M | 11.32M | 210.00K | -25.36M |
Balance Sheet | ||||||
| Total Assets | 905.54M | 881.08M | 754.61M | 644.86M | 380.84M | 169.46M |
| Cash, Cash Equivalents and Short-Term Investments | 29.27M | 24.31M | 48.22M | 105.37M | 39.31M | 12.82M |
| Total Debt | 18.24M | 310.56M | 210.61M | 179.65M | 229.10M | 103.83M |
| Total Liabilities | 8.29M | 416.05M | 297.12M | 267.04M | 285.89M | 139.00M |
| Stockholders Equity | 897.25M | -148.45M | -478.81M | -662.46M | 14.00K | 23.77M |
Cash Flow | ||||||
| Free Cash Flow | -47.92M | -94.21M | -75.56M | -132.76M | -70.79M | -22.65M |
| Operating Cash Flow | 74.55M | 33.03M | 38.27M | -1.35M | 18.86M | 2.29M |
| Investing Cash Flow | -125.60M | -134.55M | -74.15M | -184.03M | -117.20M | -22.18M |
| Financing Cash Flow | 88.22M | 83.50M | 5.90M | 220.55M | 125.01M | 21.45M |
OPAL Fuels Technical Analysis
Positive
2.68
Price Trends
2.36
Positive
2.51
Positive
2.46
Positive
Market Momentum
0.09
Negative
57.32
Neutral
65.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPAL, the sentiment is Positive. The current price of 2.68 is above the 20-day moving average (MA) of 2.50, above the 50-day MA of 2.36, and above the 200-day MA of 2.46, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 57.32 is Neutral, neither overbought nor oversold. The STOCH value of 65.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPAL.
OPAL Fuels Risk Analysis
OPAL Fuels disclosed 68 risk factors in its most recent earnings report. OPAL Fuels reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
OPAL Fuels Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.93B | 18.69 | 7.36% | 4.14% | 8.40% | 17.90% | |
71 Outperform | $226.13M | 16.22 | 12.11% | 3.86% | 12.04% | 5.89% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $1.24B | 12.84 | 15.50% | 6.83% | 6.29% | -1.67% | |
55 Neutral | $464.70M | 46.68 | ― | ― | 12.15% | -22.09% | |
44 Neutral | $506.50M | -0.46 | -66.14% | 5.65% | -15.57% | -423.86% | |
41 Neutral | $1.78B | 2,080.95 | -0.59% | ― | ― | ― |
* Utilities Sector Average
OPAL
OPAL Fuels
2.67
-1.21
-31.19%
NWN
Northwest Gas
47.31
9.22
24.21%
RGCO
Rgc Resources
21.48
2.01
10.32%
SPH
Suburban Propane
19.02
1.69
9.75%
NFE
New Fortress Energy
1.77
-6.87
-79.51%
CTRI
Centuri Holdings, Inc.
20.36
2.48
13.87%
OPAL Fuels Corporate Events
Business Operations and StrategyExecutive/Board Changes
OPAL Fuels Appoints Lance Moll to Board
Positive
Sep 29, 2025
On September 29, 2025, OPAL Fuels announced the appointment of Lance Moll to its Board of Directors, effective October 1, 2025. Mr. Moll, a seasoned executive with over 33 years at FedEx, brings extensive experience in operations and strategic growth, which is expected to bolster OPAL Fuels’ leadership in the growing market of RNG and CNG as alternatives to diesel in heavy-duty transportation. His appointment is seen as a strategic move to support OPAL Fuels’ efforts in decarbonizing fleets and expanding the use of renewable fuels.
The most recent analyst rating on (OPAL) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on OPAL Fuels stock, see the OPAL Stock Forecast page.
Opal Fuels Inc. Navigates Growth and Challenges in Latest Earnings Call
Aug 13, 2025
Opal Fuels Inc. Reports Mixed Earnings Amid Growth and Challenges
Opal Fuels Inc. Faces Uncertainty Amid Potential Changes in Renewable Energy Incentives
Aug 9, 2025
Opal Fuels Inc.’s financial performance is heavily reliant on government incentives for renewable natural gas (RNG) and renewable power projects, which are subject to change. The company’s growth strategy could be adversely impacted by alterations in tax laws, regulations, and incentives, such as investment tax credits and Renewable Portfolio Standards programs. Proposed IRS regulations and potential changes in the Inflation Reduction Act (IRA) incentives add uncertainty, potentially affecting the profitability and financing of RNG projects. Any reduction or repeal of these incentives could lead to decreased revenues, increased financing costs, and challenges in acquiring new projects, posing a significant risk to Opal Fuels Inc.’s business operations.
Opal Fuels Reports Strong Q2 2025 Results
Aug 9, 2025
Opal Fuels Inc. is a company specializing in the capture and conversion of biogas into renewable natural gas (RNG) and renewable power, primarily serving the heavy-duty trucking and industrial sectors with low carbon intensity fuel solutions.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.