PureCycle Technologies (PCT) AI Stock Analysis

• Market Cap: $2.45B
• Dividend Yield: N/A
• Average Volume (3M): 3.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.30
• Revenue Growth: N/A
• EPS Growth: -79.12%
• Country: US
• Employees: 157
• Sector: Industrials
• Sector Strength: 76
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.81
• Shares Outstanding: 180,093,100
• 10 Day Avg. Volume: 2,442,489
• 30 Day Avg. Volume: 3,158,189
• 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: 1.18
• Enterprise Value/Revenue: 896.69
• Enterprise Value/Gross Profit: -30.12
• Enterprise Value/Ebitda: -14.82
• 1Y Price Target: $16.50
• Price Target Upside: 21.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 38 Underperform
• Price Target: ―

PureCycle Technologies is facing significant financial challenges, including zero revenue and negative cash flows, which heavily weigh down its stock score. The company's bearish technical indicators and poor valuation further contribute to a low score. However, recent operational improvements and partnerships offer a glimmer of hope, reflected in slightly higher scores for earnings call and corporate events. Overall, the stock remains a high-risk investment with potential upside if operational improvements lead to financial stability.

Positive Factors

Capacity Expansion

PCT's newly announced ~1B lb capacity plan is in early stages of ramping up, which is expected to drive rapid revenue growth.

Commercialization Progress

PCT has increased its number of active and pending trials, indicating progress in commercialization efforts.

Cost Savings and Awards

PCT announced plans to begin compounding operations at Ironton by year-end, aiming to save $4MM in annual costs and potentially attract more awards.

Negative Factors

Project Financing

No update on project financing or other funding activities for first line in Augusta.

Revenue and EBITDA Performance

2Q revenue was below consensus and the company reported a negative adjusted EBITDA greater than expectations due to moderate cost growth.

PureCycle Technologies Business Overview & Revenue Model

Company Description

PureCycle Technologies (PCT) is an innovative company operating in the sustainable materials sector, primarily focused on recycling and repurposing polypropylene plastic waste. The company's core product is ultra-pure recycled polypropylene, which is produced through a proprietary purification process that removes contaminants, colors, and odors found in waste plastics. This enables PureCycle to supply high-quality recycled resin that can be used in a wide range of consumer and industrial applications, contributing to a circular economy and reducing environmental impact.

How the Company Makes Money

PureCycle Technologies generates revenue by selling ultra-pure recycled polypropylene resin to manufacturers and companies seeking sustainable materials for their products. Key revenue streams include long-term contracts with major corporations and partnerships with companies looking to incorporate recycled materials into their supply chains. Additionally, PureCycle benefits from licensing its proprietary recycling technology to other facilities, expanding its market reach and potential income sources. The company's earnings are bolstered by the growing demand for environmentally friendly materials, as businesses and consumers increasingly prioritize sustainability.

PureCycle Technologies Financial Statement Overview

Summary

PureCycle Technologies faces critical financial challenges, including zero revenue, mounting net losses of $289 million, and negative cash flows. Despite an improved debt-to-equity ratio, the company's equity ratio has decreased, and its cash flow remains negative, indicating significant risks.

Income Statement

PureCycle Technologies has consistently reported zero revenue over the years, indicating a lack of sales and market penetration. The company has faced increasing net losses, with the latest net income at -$289 million, suggesting significant operational challenges and poor profitability. There is no revenue growth or profitability margin to assess, reflecting a struggling position in its industry.

Balance Sheet

The company's debt-to-equity ratio has improved from 2.43 in 2020 to 0.37 in 2024, indicating better leverage management. However, the equity ratio has decreased over time, with the latest equity ratio at 22.61%, reflecting vulnerability in its financial structure. The decreasing total assets and stockholders' equity suggest a deteriorating asset base and financial strength.

Cash Flow

Cash flow statements highlight negative operating and free cash flows, indicating a lack of self-sustaining operations and capital expenditure reliance without adequate financing inflows. The free cash flow has consistently been negative, with an increasing trend in cash outflows. This persistent cash burn is a significant risk factor.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.23M	0.00	0.00	0.00	0.00	0.00
Gross Profit	-96.17M	-34.71M	-18.86M	-26.56M	-10.55M	-8.60M
EBITDA	-195.49M	-197.66M	-97.97M	-79.54M	-67.30M	-46.99M
Net Income	-290.73M	-289.14M	-101.72M	-84.75M	-77.50M	-52.99M
Balance Sheet
Total Assets	1.04B	798.38M	1.04B	861.34M	664.68M	407.98M
Cash, Cash Equivalents and Short-Term Investments	284.07M	15.68M	121.64M	162.48M	200.78M	64.49M
Total Debt	723.55M	401.31M	543.80M	250.13M	232.51M	262.27M
Total Liabilities	943.60M	617.94M	619.14M	350.45M	283.15M	296.23M
Stockholders Equity	98.87M	180.45M	420.24M	510.88M	381.54M	111.75M
Cash Flow
Free Cash Flow	-195.28M	-200.41M	-248.81M	-352.67M	-191.90M	-47.77M
Operating Cash Flow	-140.81M	-144.83M	-94.91M	-65.48M	-54.51M	-17.95M
Investing Cash Flow	-54.48M	-7.01M	-102.10M	-218.39M	-305.57M	-29.81M
Financing Cash Flow	469.77M	-109.17M	272.00M	247.53M	293.37M	378.19M

PureCycle Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCT, the sentiment is Positive. The current price of 13.6 is above the 20-day moving average (MA) of 13.04, below the 50-day MA of 14.03, and above the 200-day MA of 10.55, indicating a bullish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 61.97 is Neutral, neither overbought nor oversold. The STOCH value of 75.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PCT.

PureCycle Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ERII	76 Outperform	$772.44M	35.13	11.95%	―	6.19%	15.04%
CECO	76 Outperform	$1.70B	33.59	19.67%	―	15.74%	294.80%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
ARQ	57 Neutral	$313.78M	―	-0.81%	―	11.96%	70.59%
FTEK	53 Neutral	$97.57M	―	-7.69%	―	-4.78%	-1359.72%
SCWO	39 Underperform	$40.81M	―	-160.82%	―	―	―
PCT	38 Underperform	$2.45B	―	-148.91%	―	―	-79.12%

PureCycle Technologies Corporate Events

PureCycle Technologies Reports Progress in Operations and Facilities

In a corporate update for the fourth quarter and fiscal year ending December 31, 2024, PureCycle Technologies announced significant progress in its operations, including improvements at its Ironton Facility and the successful launch of the Denver, PA sorting facility. The company has made strides in commercializing its PureFive™ resin, with successful trials and sales to major companies such as Drake Extrusion Inc. and Churchill Container. These developments highlight PureCycle’s potential for growth in various industries, including consumer goods and automotive, as it continues to enhance production capacity and product quality.