374Water (SCWO) AI Stock Analysis

• Market Cap: $65.53M
• Dividend Yield: N/A
• Average Volume (3M): 10.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 27
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.03
• Shares Outstanding: 169,248,800
• 10 Day Avg. Volume: 29,012,183
• 30 Day Avg. Volume: 10,038,520
• PEG Ratio: -0.15
• Price to Book (P/B): 5.93
• Price to Sales (P/S): 206.09
• P/FCF Ratio: -8.17
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 23.84
• Enterprise Value/Gross Profit: -80.12
• Enterprise Value/Ebitda: -2.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: ―

374Water's overall stock score is low, primarily due to significant financial challenges and valuation concerns. Despite optimistic future projections and strategic advancements, the current financial instability and lack of dividends present considerable risks. Technical indicators provide mixed signals, while the earnings call offers some hope for future growth.

Positive Factors

Technological Advancements

Enhancements to the AirSCWO system improve efficiency and broaden application, strengthening 374Water's competitive edge in waste management.

Strategic Partnerships

Securing significant contracts like the UNC agreement enhances revenue potential and validates the company's technology in real-world applications.

Leadership Enhancement

Adding experienced leadership can improve strategic decision-making and execution, potentially driving long-term growth and operational efficiency.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in market penetration and sales execution, potentially impacting future growth and financial stability.

Increased Operating Expenses

Rising operating expenses without corresponding revenue growth can strain profitability and cash flow, posing risks to financial health.

Net Loss

Persistent net losses highlight operational inefficiencies and financial challenges, which could hinder the company's ability to invest in growth initiatives.

374Water Business Overview & Revenue Model

Company Description

374Water 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 Money

374Water 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.91M	445.44K	743.95K	3.02M	48.10K	86.57K
Gross Profit	-568.50K	-912.71K	-1.11M	336.50K	48.10K	72.33K
EBITDA	-16.94M	-12.60M	-8.56M	-4.69M	-3.12M	-10.75K
Net Income	-17.40M	-12.43M	-8.10M	-4.69M	-3.16M	40.34K
Balance Sheet
Total Assets	11.36M	19.18M	16.12M	9.92M	12.41M	103.81K
Cash, Cash Equivalents and Short-Term Investments	933.33K	10.65M	10.45M	5.99M	11.13M	71.80K
Total Debt	1.39M	652.70K	0.00	0.00	0.00	515.99K
Total Liabilities	4.87M	3.71M	1.37M	1.66M	86.37K	92.56K
Stockholders Equity	6.50M	15.47M	14.75M	8.25M	12.33M	11.25K
Cash Flow
Free Cash Flow	-14.30M	-11.24M	-9.15M	-5.15M	-1.84M	64.76K
Operating Cash Flow	-13.30M	-10.59M	-9.03M	-4.95M	-1.84M	64.76K
Investing Cash Flow	-1.01M	-653.54K	1.85M	-2.16M	28.34K	-275.00
Financing Cash Flow	13.28M	11.45M	13.58M	25.05K	12.87M	2.05K

374Water Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCWO, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.37, and below the 200-day MA of 0.33, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 63.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SCWO.

374Water Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CLWT	60 Neutral	$8.15M	11.25	―	―	-14.25%	-59.84%
CLIR	48 Neutral	$45.34M	-7.69	-53.13%	―	-49.70%	-2.72%
LIQT	45 Neutral	$19.54M	―	-73.79%	―	10.97%	44.99%
FTEK	44 Neutral	$78.31M	-23.98	-7.10%	―	-5.66%	-397.46%
TOMZ	41 Neutral	$15.78M	―	-108.76%	―	-30.61%	-111.40%
SCWO	39 Underperform	$65.53M	-3.44	-232.63%	―	―	―

374Water Corporate Events

374Water Appoints Stephen Jones to Board

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.