Education
About Us
Working with TipRanks
Follow Us
374Water (SCWO)
NASDAQ:SCWO
Top Page
374Water
(NASDAQ:SCWO)
39Underperform
Positive Factors
Financial Position
SCWO ended 3Q24 with $2.0M in cash and no debt, and raised net proceeds of $11.8M through an equity offering with warrants.
Funding and Orders
Municipalities in California and Florida have secured funding to order wastewater treatment units from SCWO.
Market Opportunity
A meaningful long-term market opportunity for SCWO's waste treatment technology has been identified based on coverage of environmental and water consulting company Tetra Tech.
Negative Factors
EBITDA Loss
SCWO's 2Q24 EBITDA loss of ($2.7M) was wider than the forecast of ($2.0M).
Revenue Performance
SCWO reported 2Q24 results with revenue of $37K, below the forecast of ~200K.
374Water (SCWO) vs. S&P 500 (SPY)
Market Cap
$49.19M
Dividend YieldN/A
Average Volume (3M)198.35K
Price to Earnings (P/E)―
Beta (1Y)1.87
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees27
SectorIndustrials
Sector Strength83
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-0.03
Shares Outstanding144,682,970
10 Day Avg. Volume147,697
30 Day Avg. Volume198,350
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)3.00
Price to Sales (P/S)0.00
P/FCF Ratio-4.38
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue31.06
Enterprise Value/Gross Profit-24.67
Enterprise Value/Ebitda-0.91
Forecast
1Y Price Target
$2.50Price Target Upside635.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
374Water Business Overview & Revenue Model
Company Description374Water is a technology company operating in the environmental services sector, focusing on sustainable waste management solutions. The company specializes in Supercritical Water Oxidation (SCWO) systems that transform waste into clean water, energy, and minerals. By addressing the challenges of waste disposal and resource recovery, 374Water aims to contribute to a circular economy and reduce environmental impact.
How the Company Makes Money374Water makes money primarily through the sale and lease of its SCWO systems to municipalities, industries, and waste management companies. The company also generates revenue from providing maintenance, support, and operational services for its systems. Additionally, 374Water may engage in partnerships with governments and private entities to expand its reach and application of SCWO technology. These collaborations can lead to joint projects and shared revenue streams that enhance the company's financial performance.
374Water Financial Statement Overview
Summary
374Water faces severe financial challenges, with negative gross profit and net income, unstable revenue, and consistent cash flow issues. Despite high cash reserves and low debt, the financial outlook remains weak due to persistent losses and cash burn.Income Statement
374Water's income statement reveals a challenging financial situation. The company has exhibited negative gross profit and net income across recent years, indicating persistent losses. EBIT and EBITDA margins are negative, reflecting operational inefficiencies. Revenue growth is unstable, with significant fluctuations and a recent decline. These factors contribute to a low income statement score.15
Very Negative
Balance Sheet
The balance sheet shows a mixed picture with high cash reserves and a very low debt level, which is a positive aspect. However, the equity ratio is low due to significant accumulated losses, and the company has struggled with negative stockholders' equity in the past. The debt-to-equity ratio is not applicable due to negative equity in earlier years. Overall, the balance sheet suggests some financial resilience but with underlying weaknesses.45
Neutral
Cash Flow
The cash flow analysis highlights significant challenges. Operating cash flow has consistently been negative, indicating cash burn. Free cash flow growth is difficult to assess but remains negative, showing issues with cash generation. The company relies on financing activities for liquidity, which poses sustainability risks. These concerns lead to a low cash flow score.20
Very Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 445.44K | 743.95K | 3.02M | 48.10K | 40.00K |
| Gross Profit | ||||
| -912.71K | -1.11M | 336.50K | -1.35M | 24.85K |
| EBIT | ||||
| -12.80M | -8.64M | -4.76M | -3.17M | -398.37K |
| EBITDA | ||||
| -12.21M | -8.56M | -4.69M | -3.12M | -10.75K |
| Net Income Common Stockholders | ||||
| -12.43M | -8.10M | -4.62M | -3.16M | -668.96K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 10.65M | 10.45M | 5.99M | 11.13M | 95.39K |
| Total Assets | ||||
| 19.18M | 16.12M | 9.92M | 12.41M | 130.39K |
| Total Debt | ||||
| 652.70B | 0.00 | 0.00 | 0.00 | 515.99K |
| Net Debt | ||||
| -10.00M | -10.45M | -4.05M | -11.13M | 420.60K |
| Total Liabilities | ||||
| 3.71M | 1.37M | 1.66M | 86.37K | 592.37K |
| Stockholders Equity | ||||
| 15.47T | 14.75M | 8.25M | 12.33M | -461.98K |
| Cash Flow | Free Cash Flow | |||
| -11.24M | -9.15M | -5.15M | -1.93M | -502.30K |
| Operating Cash Flow | ||||
| -10.59M | -9.03M | -4.95M | -1.84M | -502.02K |
| Investing Cash Flow | ||||
| -653.54K | 1.85M | -2.16M | 28.34K | -275.00 |
| Financing Cash Flow | ||||
| 11.45M | 13.58M | 25.05K | 12.87M | 577.38K |
374Water Technical Analysis
Neutral
0.34
Price Trends
0.32
Positive
0.43
Negative
0.86
Negative
Market Momentum
<0.01
Negative
58.61
Neutral
66.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCWO, the sentiment is Neutral. The current price of 0.34 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.32, and below the 200-day MA of 0.86, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.61 is Neutral, neither overbought nor oversold. The STOCH value of 66.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SCWO.
374Water Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $882.05M | 19.31 | 18.34% | ― | 8.89% | 278.44% | |
64 Neutral | $4.30B | 11.88 | 5.23% | 249.82% | 4.12% | -10.27% | |
50 Neutral | $29.05M | ― | -4.54% | ― | -7.19% | -24.85% | |
45 Neutral | $28.56M | ― | -55.91% | ― | 49.65% | 16.68% | |
45 Neutral | $16.21M | ― | -62.68% | ― | 19.09% | 3.50% | |
39 Underperform | $49.19M | ― | ― | ― | ― | ||
37 Underperform | $13.54M | ― | -60.98% | ― | -18.87% | -9.47% |
* Industrials Sector Average
Performance Comparison
SCWO
374Water
0.34
-1.03
-75.18%
CECO
Ceco Environmental
25.01
0.58
2.37%
FTEK
Fuel Tech
0.97
-0.27
-21.77%
CLIR
ClearSign Combustion
0.54
-0.23
-29.87%
LIQT
LiqTech International
1.41
-1.24
-46.79%
TOMZ
TOMI Environmental Solutions
0.86
0.13
17.81%
374Water Earnings Call Summary
Earnings Call Date:Mar 27, 2025
(Q4-2024)
| % Change Since: -5.56%|
Next Earnings Date:May 15, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several strategic achievements such as technological advancements, securing significant contracts, and strengthening financial positions through funding. However, these were counterbalanced by a decline in revenue, increased operating expenses, and a widened net loss. Despite challenges, the company is positioned for future growth with new market opportunities.Q4-2024 Updates
Positive Updates
Operational and Technological Advancements
Material improvements were made to the AirSCWO system, including ruggedizing and optimizing the system, upgrading pre- and post-treatment systems, and expanding destruction capabilities across solid and liquid waste.
Strategic Relocation and Expansion
The company relocated its systems and operations to Orlando, facilitating delivery on deferred commitments and began manufacturing AS1 and AS6 systems.
Significant Contract Acquisition
Secured a waste destruction contract with the University of North Carolina, potentially worth over $5 million.
Funding and Financial Position
Completed a registered direct offering of $12.2 million in gross proceeds, replenishing cash reserves to $10.7 million as of December 31, 2024.
New Market Opportunities
Expansion into new markets with plans to establish waste destruction service operations in 2025 and partnering with TSDFs.
Negative Updates
Revenue Decline
Revenue decreased to $445,000 in 2024 from $743,000 in the previous year, attributed to fewer milestones and reduced direct contract costs.
Increased Operating Expenses
Total operating expenses increased by 59% to $11.9 million compared to the previous year, driven by increases in professional fees, general and administrative expenses, and R&D costs.
Net Loss
Reported a net loss of $12.4 million for the year ended December 31, 2024, compared to a net loss of $8.1 million in the prior year.
Company Guidance
During the 374Water Fiscal Year 2024 Financial Results Conference Call, the company provided guidance indicating a strong growth trajectory fueled by their proprietary AirSCWO technology. They projected generating $4 million to $6 million in revenue for 2025, with a potential path to reach $250 million to $500 million in annual revenue over the next five years. This optimism is underpinned by strategic initiatives such as a $12.2 million direct offering to fund technology ruggedization and expansion, as well as new contracts like the waste destruction agreement with the University of North Carolina at Chapel Hill Collaboratory, potentially valued over $5 million. The company plans to enhance its manufacturing capacity, currently able to produce two to four systems simultaneously, to meet the growing demand across municipal, federal, and industrial markets. They also highlighted the establishment of a robust partner network to broaden their reach and service capabilities.374Water Corporate Events
Executive/Board Changes
374Water Appoints Stephen Jones to Board
Neutral
Apr 17, 2025
On April 13, 2025, 374Water Inc. announced the appointment of Stephen Jones to its Board of Directors, effective April 14, 2025. Mr. Jones brings extensive experience from his previous roles, including as President and CEO of Covanta Holding Corporation and various senior positions at Air Products and Chemicals, Inc. This strategic addition to the board is expected to enhance 374Water’s leadership capabilities, although specific committee assignments and compensation details for Mr. Jones are yet to be determined.
Spark’s Take on SCWO Stock
According to Spark, TipRanks’ AI Analyst, SCWO is a Underperform.
Overall, 374Water’s stock score is primarily constrained by its severe financial issues and negative valuation metrics. The company’s potential for future growth, as laid out in the earnings call, is promising but requires overcoming significant short-term challenges. Current technical analysis suggests a bearish trend, further impacting the stock’s attractiveness.
To see Spark’s full report on SCWO stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.