Sg Blocks (SGBX) AI Stock Analysis

• Market Cap: $2.26M
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.64
• Revenue Growth: -69.32%
• EPS Growth: 63.86%
• Country: US
• Employees: 92
• Sector: Industrials
• Sector Strength: 61
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -12.22
• Shares Outstanding: 6,389,041
• 10 Day Avg. Volume: 211,316
• 30 Day Avg. Volume: 1,094,222
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.34
• Price to Cash Flow (P/CF): -0.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Sg Blocks currently faces considerable financial challenges with declining revenues and a struggling balance sheet, significantly impacting its overall score. Despite this, recent corporate events, including strategic mergers and leadership changes, indicate potential for future improvement. The technical analysis suggests bearish sentiment, and the valuation remains unattractive due to a negative P/E ratio. The company's proactive strategic initiatives may provide a path to recovery, but immediate concerns overshadow potential long-term benefits.

Sg Blocks Business Overview & Revenue Model

Company Description

SG Blocks, Inc. (SGBX) is a leading innovator in providing safe, sustainable, and eco-friendly construction solutions. The company specializes in the design, construction, and modification of prefabricated steel shipping containers for use in residential, commercial, and industrial applications. Their modular building approach offers a versatile and cost-effective alternative to traditional construction methods, with a focus on reducing waste and enhancing environmental sustainability.

How the Company Makes Money

SG Blocks makes money primarily through the design and construction of modular buildings using recycled shipping containers. Their revenue model includes selling turnkey modular solutions across various sectors, such as commercial, residential, and industrial. In addition to direct sales, SG Blocks generates income from design services, engineering, and project management fees associated with their modular construction projects. The company often partners with developers, architects, and contractors to deliver customized solutions, which can lead to additional revenue through collaborative projects. Furthermore, SG Blocks may also benefit from strategic partnerships and joint ventures that expand their market reach and provide opportunities for larger-scale projects.

Sg Blocks Financial Statement Overview

Summary

Sg Blocks is facing severe financial challenges with declining revenues, negative profit margins, and an imbalanced capital structure. The inability to generate positive cash flows from operations further exacerbates liquidity issues. Urgent strategic shifts are required to stabilize and improve financial performance.

Income Statement

Sg Blocks has experienced significant revenue decline in recent years, with TTM revenue dropping substantially from previous periods. The gross profit margin is negative due to a high cost of goods sold, leading to unsustainable net and EBIT margins. The company is operating at a loss, indicating weak profitability and a need for strategic adjustments.

Balance Sheet

The balance sheet shows high leverage with negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is unmanageable, and the negative equity ratio reflects a concerning capital structure. This poses potential risks for solvency and limits financial flexibility.

Cash Flow

Sg Blocks' cash flow statement reveals negative operating and free cash flows, indicating challenges in generating cash from core operations. The free cash flow growth rate is negative, and cash flow ratios highlight inefficiencies in converting income into cash, raising liquidity concerns.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
5.98M	16.52M	24.39M	38.34M	8.76M	2.98M
	Gross Profit
-7.48M	-2.56M	3.25M	2.33M	2.22M	677.35K
	EBIT
-16.02M	-24.77M	-7.23M	-5.98M	-4.58M	-3.77M
	EBITDA
-19.43M	-21.12M	-6.14M	-5.30M	-4.26M	-6.59M
	Net Income Common Stockholders
-25.17M	-26.28M	-8.32M	-10.90M	-4.73M	-7.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.30K	17.45K	582.78K	13.02M	13.01M	1.63M
	Total Assets
17.30K	17.21M	26.56M	34.92M	26.88M	6.63M
	Total Debt
37.50K	12.32M	7.66M	3.93M	1.54M	0.00
	Net Debt
20.20K	12.31M	7.08M	-9.09M	-11.47M	-1.63M
	Total Liabilities
50.55K	23.55M	12.12M	13.21M	8.44M	2.27M
	Stockholders Equity
-33.26K	-7.46M	14.82M	20.35M	18.25M	4.36M
Cash Flow		Free Cash Flow
-10.97M	-7.84M	-8.46M	-5.53M	-4.46M	-2.82M
	Operating Cash Flow
-10.89M	-7.14M	-5.63M	-662.76K	-2.89M	-2.82M
	Investing Cash Flow
-479.69K	-864.82K	-3.85M	-9.47M	-3.05M	-2.07K
	Financing Cash Flow
12.51M	7.44M	-2.96M	10.15M	17.32M	3.07M

Sg Blocks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.35
• 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 SGBX, the sentiment is Negative. The current price of 0.35 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.56, and below the 200-day MA of 0.99, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 43.61 is Neutral, neither overbought nor oversold. The STOCH value of 43.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGBX.

Sg Blocks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXP	72 Outperform	$7.50B	16.09	33.51%	0.48%	0.64%	-1.15%
VMC	72 Outperform	$30.19B	33.36	11.79%	0.83%	-4.68%	-1.73%
CX	66 Neutral	$8.07B	8.61	8.39%	1.63%	-5.07%	417.07%
MLM	63 Neutral	$29.37B	14.87	22.83%	0.69%	-3.56%	70.93%
Sector *	62 Neutral	$7.67B	13.25	3.04%	3.47%	3.63%	-13.99%
SGBX	33 Underperform	$2.26M	―	308.54%	―	-69.32%	63.86%

Sg Blocks Corporate Events

Sg Blocks Merges with New Asia Holdings for Growth

On February 2, 2025, Safe & Green Holdings Corp. entered into a Merger Agreement with New Asia Holdings, Inc. (NAHD), under which NAHD will be merged into a subsidiary of Safe & Green. This strategic move is aimed at leveraging NAHD’s subsidiaries, Olenox and Machfu, to enhance capabilities in sustainable energy and industrial IoT. Safe & Green plans to integrate Olenox’s energy assets and Machfu’s IoT capabilities with its existing operations to drive revenue growth, improve operational efficiencies, and create new opportunities for value creation. The merger is anticipated to strengthen Safe & Green’s market position by creating a diversified, high-growth company at the intersection of energy and technology.

Sg Blocks Appoints Jim Pendergast as COO

On January 16, 2025, Safe & Green Holdings Corp appointed Jim Pendergast as Chief Operating Officer under a two-year employment agreement. Pendergast, with over 25 years of leadership in various sectors, is expected to bring significant expertise in corporate operations, mergers and acquisitions, and financial restructuring to the company. This strategic appointment aims to strengthen the company’s operational efficiency and market presence.

Sg Blocks Announces Strategic Acquisition and Leadership Shift

On January 8, 2025, Safe & Green Holdings Corp. entered into a binding Letter of Intent to acquire all securities of New Asia Holdings Inc., including its subsidiaries Olenox Corp. and Machfu.com. This strategic move is expected to enhance Safe & Green’s capabilities by integrating Olenox’s innovative energy solutions with Machfu’s IoT technologies, setting the stage for significant growth in energy and technology sectors. The acquisition aims to create a diversified entity capable of addressing industry inefficiencies and expanding market opportunities in renewable energy and digital transformation. Michael McLaren, recently appointed CEO of Safe & Green, will also assume the role of Chairman, leading the company through this transformative phase, with a focus on operational efficiencies and economies of scale.