OPAL Fuels (OPAL) AI Stock Analysis

• Market Cap: $379.74M
• Dividend Yield: N/A
• Average Volume (3M): 125.31K
• Price to Earnings (P/E): 38.3
• Beta (1Y): 1.40
• Revenue Growth: 12.15%
• EPS Growth: -22.09%
• Country: US
• Employees: 341
• Sector: Utilities
• Sector Strength: 62
• Industry: Regulated Gas
• EPS (TTM): 0.03
• Shares Outstanding: 28,996,178
• 10 Day Avg. Volume: 129,688
• 30 Day Avg. Volume: 125,310
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.30
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 8.51
• Enterprise Value/Ebitda: 26.13
• 1Y Price Target: $2.94
• Price Target Upside: 32.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 52 Neutral
• Price Target: $2.50 ▲(12.61% Upside)

OPAL Fuels' overall score is driven by stable revenue growth and strategic achievements, such as index inclusion and production increases. However, financial challenges, including cash flow issues and valuation concerns, temper the outlook. Technical indicators suggest potential bearish momentum, while the earnings call highlights both opportunities and risks.

Positive Factors

RNG Fuel Segment Production Increase

The significant increase in RNG production highlights OPAL's capability to scale operations and meet growing demand for renewable energy, strengthening its market position.

Inclusion in Russell Indices

Being added to major indices enhances OPAL's visibility and credibility, potentially attracting more institutional investors and supporting long-term growth.

Legislative Support

Legislative support ensures financial incentives for OPAL's projects, enhancing profitability and encouraging further investment in renewable energy infrastructure.

Negative Factors

Adjusted EBITDA Decline

The decline in adjusted EBITDA indicates potential challenges in maintaining profitability, which could impact OPAL's ability to fund future growth initiatives.

Lower RIN Prices

Falling RIN prices reduce revenue from environmental credits, affecting OPAL's financial returns and potentially limiting cash available for reinvestment.

Cash Flow Challenges

Negative free cash flow suggests OPAL may struggle to finance operations and growth without external funding, posing risks to its financial health and strategic plans.

OPAL Fuels Business Overview & Revenue Model

Company Description

OPAL Fuels Inc. engages in the production and distribution of renewable natural gas for use as a vehicle fuel for heavy and medium-duty trucking fleets. It also designs, develops, constructs, operates, and services fueling stations for trucking fleets that use natural gas to displace diesel as transportation fuel. In addition, it offers design, development, and construction services for hydrogen fueling stations. Further, the company generates and sells renewable power to utilities. As of May 1, 2022, it owned and operated 24 biogas projects. The company was founded in 1998 and is based in White Plains, New York.

How the Company Makes Money

OPAL Fuels generates revenue primarily through the sale of renewable natural gas, which is produced at its biogas facilities. The company monetizes RNG by selling it as a cleaner alternative to conventional fossil fuels, particularly for use in transportation and industrial processes. Another key revenue stream comes from the development and operation of RNG fueling infrastructure, where OPAL Fuels provides solutions for fleets and other customers looking to transition to low-carbon fuel options. Additionally, OPAL Fuels benefits from various government incentives and environmental credits, such as Renewable Identification Numbers (RINs) and Low Carbon Fuel Standard (LCFS) credits, which enhance the financial returns of their RNG projects.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 2.22
• 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 OPAL, the sentiment is Negative. The current price of 2.22 is below the 20-day moving average (MA) of 2.27, below the 50-day MA of 2.38, and below the 200-day MA of 2.62, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 43.74 is Neutral, neither overbought nor oversold. The STOCH value of 30.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPAL.

OPAL Fuels Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWN	71 Outperform	$1.70B	16.39	7.36%	4.64%	8.40%	17.90%
RGCO	71 Outperform	$231.14M	16.63	12.11%	3.67%	12.04%	5.89%
SPH	68 Neutral	$1.22B	12.40	15.50%	6.98%	6.29%	-1.67%
Sector *	66 Neutral	$17.50B	17.93	5.60%	3.63%	6.62%	11.55%
OPAL	52 Neutral	$379.74M	38.29	-8.53%	―	12.15%	-22.09%
CTRI	45 Neutral	$2.05B	2,080.95	-0.59%	―	―	―
NFE	44 Neutral	$386.99M	11.07	-66.14%	29.41%	-15.57%	-423.86%

OPAL Fuels Corporate Events

OPAL Fuels Holds Annual Stockholders Meeting

On June 18, 2025, OPAL Fuels Inc. held its Annual Meeting of Stockholders, where a total of 251,104,008 votes were represented, constituting a quorum. During the meeting, six directors were elected to serve until the 2026 Annual Meeting, and the appointment of BDO USA, P.C. as the independent registered public accounting firm for 2025 was ratified.