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Sg Blocks Inc (SGBX)
NASDAQ:SGBX

Sg Blocks (SGBX) AI Stock Analysis

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SG

Sg Blocks

(NASDAQ:SGBX)

Rating:47Neutral
Price Target:
$0.50
▼(-16.67%Downside)
Sg Blocks is primarily hindered by its weak financial performance and valuation, reflecting significant operational and financial challenges. While recent corporate events offer potential strategic benefits, the risk of Nasdaq delisting and underlying financial distress weigh heavily on the overall score.

Sg Blocks (SGBX) vs. SPDR S&P 500 ETF (SPY)

Sg Blocks Business Overview & Revenue Model

Company DescriptionSG 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 MoneySG 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 significant financial challenges, with declining revenues, negative profits, and a deteriorating balance sheet. The company recorded a net loss and has negative free cash flow, indicating severe cash management issues and financial distress.
Income Statement
15
Very Negative
Sg Blocks has experienced a significant decline in revenue, demonstrating a negative revenue growth trend. The company recorded a net loss, with negative net profit and EBIT margins, indicating operational inefficiencies and challenges in achieving profitability.
Balance Sheet
10
Very Negative
The company's balance sheet reflects instability with a negative stockholders' equity, suggesting financial distress. The absence of total assets and the presence of liabilities without corresponding equity raises concerns about leverage and financial health.
Cash Flow
20
Very Negative
Sg Blocks has negative free cash flow, highlighting cash management challenges. Although operating cash flow is negative, the company has reduced its capital expenditures, suggesting an attempt to manage cash outflows.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.98M16.52M24.39M38.34M8.76M
Gross Profit
-244.00K-2.56M3.25M2.33M2.22M
EBIT
-9.71M-21.75M-7.23M-5.98M-4.58M
EBITDA
-15.01M-18.14M-5.49M-5.34M-4.30M
Net Income Common Stockholders
-16.98M-26.28M-8.32M-10.83M-4.69M
Balance SheetCash, Cash Equivalents and Short-Term Investments
375.87K17.45K582.78K13.02M13.01M
Total Assets
6.07M17.21M26.56M34.92M26.88M
Total Debt
6.89M12.32M7.66M3.93M1.54M
Net Debt
6.51M12.31M7.08M-9.09M-11.47M
Total Liabilities
18.53M23.55M12.12M13.21M8.44M
Stockholders Equity
-12.46M-7.46M14.82M20.35M18.25M
Cash FlowFree Cash Flow
-10.99M-7.84M-8.46M-5.53M-4.46M
Operating Cash Flow
-10.90M-7.14M-5.63M-662.76K-2.89M
Investing Cash Flow
6.70K-864.82K-3.85M-9.47M-3.05M
Financing Cash Flow
11.25M7.44M-2.96M10.15M17.32M

Sg Blocks Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.60
Price Trends
50DMA
0.57
Positive
100DMA
0.60
Positive
200DMA
0.70
Negative
Market Momentum
MACD
0.06
Positive
RSI
43.08
Neutral
STOCH
3.21
Positive
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 0.6 is below the 20-day moving average (MA) of 0.81, above the 50-day MA of 0.57, and below the 200-day MA of 0.70, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 43.08 is Neutral, neither overbought nor oversold. The STOCH value of 3.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGBX.

Sg Blocks Risk Analysis

Sg Blocks disclosed 69 risk factors in its most recent earnings report. Sg Blocks reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sg Blocks Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$109.67M9.2313.54%18.83%
APAP
71
Outperform
$64.30M14.237.11%-3.60%
67
Neutral
$387.52M11.859.13%8.06%38.46%
66
Neutral
$4.51B12.225.40%3.63%4.14%-12.01%
47
Neutral
$7.54M308.54%-69.32%63.86%
44
Neutral
$7.79M-10.62%11.30%11.36%22.93%
43
Neutral
$32.77M-76.24%8.71%-164.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SGBX
Sg Blocks
0.60
-2.38
-79.87%
AP
Ampco-Pittsburgh
3.06
2.14
232.61%
GIFI
Gulf Island Fabrication
6.80
0.51
8.11%
HIHO
Highway Holdings
1.80
-0.24
-11.76%
NWPX
Northwest Pipe Company
38.79
5.38
16.10%
TPCS
TechPrecision
3.23
-0.43
-11.75%

Sg Blocks Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance
Sg Blocks Faces Nasdaq Delisting Notice
Negative
Jun 12, 2025

On June 11, 2025, Safe & Green Holdings Corp. was informed by Nasdaq that its continued non-compliance with the $1.00 minimum bid price requirement could lead to the delisting of its securities. The company plans to present a compliance plan at an upcoming Nasdaq hearing. Despite this notice, the company’s stock will continue trading under the symbol ‘SGBX’ pending the hearing’s outcome.

Private Placements and Financing
Sg Blocks Secures $2M Line of Credit
Neutral
Jun 10, 2025

On June 3, 2025, Olenox Corp., a subsidiary of Safe & Green Holdings Corp., secured a $2 million revolving line of credit from Prosperity Bank. The loan, netting $1,984,998 after fees, is backed by a certificate of deposit and bears a 5% interest rate. The agreement includes provisions for prepayment, late fees, and conditions for default, with a significant increase in interest to 18% upon default. This financial move could impact the company’s liquidity and financial strategy, providing flexibility but also imposing strict compliance requirements.

Private Placements and FinancingRegulatory Filings and Compliance
Sg Blocks Secures $100 Million Stock Purchase Agreement
Positive
Jun 5, 2025

On May 29, 2025, Safe & Green Holdings Corp. entered into a Stock Purchase Agreement with Generating Alpha Ltd., allowing the issuance and sale of up to $100 million in newly issued shares of the Company’s common stock. The agreement outlines conditions for sales, including SEC registration and compliance with Nasdaq rules, and limits the purchaser’s ownership to 4.99% of the outstanding common stock. This strategic move is expected to provide the company with flexible funding options, potentially impacting its market operations and stakeholder interests.

Executive/Board ChangesM&A TransactionsBusiness Operations and Strategy
Safe & Green Holdings to Acquire Giant Containers
Positive
Jun 2, 2025

On May 27, 2025, Safe & Green Holdings Corp. entered into a non-binding Letter of Intent to acquire Giant Containers Inc. for $3.5 million. The acquisition aims to expand Safe & Green’s modular infrastructure capabilities and capture a high-value project pipeline. Giant Containers, known for its custom modular shipping container structures, has active projects worth over $6.8 million, which Safe & Green will assume. The transaction includes appointing Giant’s CEO, Daniel Kroft, as Vice President of Business Development at Safe & Green. This strategic move is expected to enhance Safe & Green’s industry positioning by leveraging Giant’s expertise and client relationships, thereby strengthening its commitment to long-term shareholder value.

M&A TransactionsBusiness Operations and Strategy
Sg Blocks Acquires Texas Oil Leases for Expansion
Positive
May 29, 2025

On May 28, 2025, Safe & Green Holdings Corp. announced an asset purchase agreement with Sherman Oil Company LLC to acquire 1,600 acres of oil leases in Texas for $1,000,000. This acquisition includes operational equipment and aims to expand the company’s oil production holdings. The deal is structured with staggered payments and involves customary conditions for completion. Safe & Green Holdings plans to enhance production from the newly acquired wells using its Olenox technology, expecting to increase output to over 75 barrels per day within four months. This move is part of the company’s strategy to diversify its portfolio and provide additional value to shareholders.

Executive/Board Changes
Sg Blocks Appoints Samarth Verma to Board
Neutral
May 22, 2025

On May 21, 2025, Shafron Hawkins resigned from the Board of Directors of Safe & Green Holdings Corp., and Samarth Verma was appointed to fill the vacancy. Verma, an experienced technology innovator, will serve on several committees and bring his expertise in immersive media and corporate development to the company.

Delistings and Listing ChangesRegulatory Filings and Compliance
Sg Blocks Faces Nasdaq Delisting Notice
Negative
May 16, 2025

On May 13, 2025, Safe & Green Holdings Corp. received a notification from Nasdaq about the potential delisting of its securities due to concerns over substantial shareholder dilution from a recent securities issuance. The company plans to appeal this decision and submit a compliance plan while also preparing to apply for trading on the OTCQB market as a contingency.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.