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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:44Neutral
Price Target:
$0.50
▼(-19.35%Downside)
The overall stock score reflects significant financial challenges and concerning valuation metrics, slightly offset by strategic corporate activities that could potentially improve future prospects. The financial instability and potential delisting are the most significant risks, while acquisitions and financing agreements offer some hope for recovery.

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 code-engineered cargo shipping containers for safe and sustainable construction. The company operates in the modular construction sector, offering products and services that include designing, fabricating, and delivering customized modular structures for a variety of sectors, including residential, commercial, and industrial applications. SG Blocks prides itself on promoting sustainability and efficiency, providing eco-friendly building solutions that adhere to stringent safety standards.
How the Company Makes MoneySG Blocks generates revenue through the design, fabrication, and sale of modular structures made from repurposed shipping containers. The company earns income by offering turnkey solutions that include architectural design, engineering, and project management services. Key revenue streams include direct sales of modular units, construction contracts, and licensing agreements. SG Blocks often collaborates with developers, architects, and other industry partners to deliver custom projects, which can range from single-unit residential homes to large-scale commercial buildings. Additionally, SG Blocks benefits from strategic partnerships and alliances that expand its market reach and enhance its offerings.

Sg Blocks Financial Statement Overview

Summary
Sg Blocks is experiencing severe financial difficulties, with declining revenues, persistent losses, and poor cash flow management. The balance sheet is highly leveraged with worsening net debt positions and negative stockholders' equity, highlighting financial instability.
Income Statement
25
Negative
Sg Blocks has experienced a significant decline in revenue from historical levels, with a negative revenue growth rate over recent periods. The company continues to operate at a loss, evidenced by negative net profit and EBIT margins. This indicates operational challenges and inefficiencies in cost management.
Balance Sheet
35
Negative
The balance sheet shows a substantial leverage with a relatively high debt-to-equity ratio, and net debt positions have worsened. Stockholders' equity is negative in recent periods, indicating financial instability. The equity ratio is low, highlighting reliance on debt financing.
Cash Flow
30
Negative
Sg Blocks shows negative operating and free cash flows, indicating a strain in generating cash from core operations. The free cash flow growth rate remains negative, and the cash flow to net income ratios suggest cash flow issues despite financing activities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.62M4.98M16.52M24.39M38.34M8.76M
Gross Profit2.36M-244.00K-2.56M3.25M2.33M2.22M
EBITDA-12.05M-15.01M-18.14M-5.49M-5.34M-4.30M
Net Income-16.94M-16.98M-26.28M-8.32M-10.83M-4.69M
Balance Sheet
Total Assets49.17M6.07M17.21M26.56M34.92M26.88M
Cash, Cash Equivalents and Short-Term Investments230.51K375.87K17.45K582.78K13.02M13.01M
Total Debt11.94M6.89M12.32M7.66M3.93M1.54M
Total Liabilities28.09M18.53M23.55M12.12M13.21M8.44M
Stockholders Equity21.08M-12.46M-7.46M14.82M20.35M18.25M
Cash Flow
Free Cash Flow-9.67M-10.99M-7.84M-8.46M-5.53M-4.46M
Operating Cash Flow-9.69M-10.90M-7.14M-5.63M-662.76K-2.89M
Investing Cash Flow81.22K6.70K-864.82K-3.85M-9.47M-3.05M
Financing Cash Flow10.70M11.25M7.44M-2.96M10.15M17.32M

Sg Blocks Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.62
Price Trends
50DMA
0.68
Negative
100DMA
0.58
Positive
200DMA
0.67
Negative
Market Momentum
MACD
-0.03
Positive
RSI
44.31
Neutral
STOCH
16.56
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 0.62 is below the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.68, and below the 200-day MA of 0.67, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.31 is Neutral, neither overbought nor oversold. The STOCH value of 16.56 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$113.56M9.5713.54%18.83%
72
Outperform
$414.19M12.909.13%8.06%38.46%
67
Neutral
£2.80B10.494.69%217.64%2.40%-24.53%
APAP
67
Neutral
$58.68M14.097.11%-3.60%
47
Neutral
$7.50M67.631.64%12.27%17.26%
44
Neutral
$6.21M-310.72%-61.64%77.04%
43
Neutral
$35.69M-76.24%8.71%-164.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SGBX
Sg Blocks
0.62
-1.78
-74.17%
AP
Ampco-Pittsburgh
3.03
1.57
107.53%
GIFI
Gulf Island Fabrication
7.05
0.84
13.53%
HIHO
Highway Holdings
1.63
-0.39
-19.31%
NWPX
Northwest Pipe Company
42.23
7.66
22.16%
TPCS
TechPrecision
3.63
0.18
5.22%

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.Date of analysis: Jun 25, 2025