Tecogen (TGEN) AI Stock Analysis

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Tecogen

(OTC:TGEN)

47Neutral

Tecogen faces significant financial challenges with declining revenues, negative cash flow, and sustained losses, which are major concerns. However, technical indicators show mixed signals, and recent strategic partnerships and management changes offer potential for future improvement. The overall score reflects the substantial risks balanced by strategic initiatives and technical momentum.

Tecogen (TGEN) vs. S&P 500 (SPY)

Market Cap

$48.72M

Dividend YieldN/A

Average Volume (3M)80.95K

Price to Earnings (P/E)―

Beta (1Y)0.71

Revenue Growth-10.02%

EPS Growth-3.51%

CountryUS

Employees91

SectorIndustrials

Sector Strength64

IndustryElectrical Equipment & Parts

Share Statistics

EPS (TTM)-0.19

Shares Outstanding24,985,262

10 Day Avg. Volume38,832

30 Day Avg. Volume80,955

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)3.65

Price to Cash Flow (P/CF)3.60

P/FCF Ratio3.60

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Tecogen Business Overview & Revenue Model

Company DescriptionTecogen Inc. (TGEN) is a leading company in the clean energy sector, specializing in the design, manufacturing, and installation of high-efficiency, ultra-clean combined heat and power (CHP) products. The company's core products include cogeneration systems, chillers, and heat pumps, which are primarily utilized in commercial, industrial, and municipal sectors. Tecogen's innovative technologies are designed to reduce energy costs and minimize environmental impact, making them an attractive choice for organizations seeking sustainable energy solutions.

How the Company Makes MoneyTecogen generates revenue through the sale and installation of its energy-efficient products, including cogeneration systems, chillers, and heat pumps. The company also derives income from long-term maintenance service contracts, ensuring optimal performance and longevity of its products. Additionally, Tecogen benefits from government incentives and regulations that promote the adoption of clean energy technologies. Partnerships with utility companies and other entities further enhance Tecogen's market reach and contribute to its revenue streams.

Tecogen Financial Statement Overview

Summary

Tecogen faces financial challenges with declining revenues and persistent net losses impacting profitability. Despite a reasonable debt-to-equity ratio, negative free cash flow and equity returns suggest the need for strategic improvements.

Income Statement

Neutral

Tecogen's TTM revenue of $22.44M shows a decline compared to $25.14M in 2023. The gross profit margin stands at 42.27%, indicating a fair ability to cover production costs, though the negative net profit margin of -24.00% and declining revenue growth point to profitability challenges. EBIT and EBITDA margins are also negative, highlighting operating inefficiencies.

Balance Sheet

Neutral

The company's debt-to-equity ratio of 0.34 indicates a manageable debt level relative to equity. However, the decreased equity ratio of 41.14% reflects a reduced buffer against liabilities. A negative ROE of -47.65% in the TTM suggests significant challenges in generating returns on equity.

Cash Flow

Negative

Tecogen's operating cash flow to net income ratio is positive at 0.01, but free cash flow remains negative, indicating cash generation issues. The free cash flow growth rate shows some improvement from the previous period, but it remains negative, highlighting ongoing liquidity challenges.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
22.44M	25.14M	25.00M	24.40M	28.25M	33.43M
	Gross Profit
9.48M	10.20M	11.07M	11.59M	10.83M	12.48M
	EBIT
-5.24M	-4.41M	-2.39M	53.84K	-2.84M	-2.05M
	EBITDA
-4.69M	-3.85M	-1.94M	4.24M	-5.65M	-4.24M
	Net Income Common Stockholders
-5.39M	-4.60M	-2.40M	3.70M	-6.22M	-4.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
272.55K	1.35M	1.91M	3.61M	1.49M	877.68K
	Total Assets
49.90M	27.79M	28.25M	32.36M	30.07M	41.12M
	Total Debt
2.01M	1.48M	1.31M	1.96M	3.60M	4.58M
	Net Debt
1.74M	127.02K	-602.93K	-1.66M	2.11M	3.70M
	Total Liabilities
21.87M	13.14M	9.27M	11.23M	12.81M	17.76M
	Stockholders Equity
27.78M	14.75M	19.09M	21.21M	17.31M	23.27M
Cash Flow		Free Cash Flow
-774.12K	-870.17K	-1.70M	310.49K	1.22M	-4.69M
	Operating Cash Flow
79.94K	-823.32K	-1.35M	465.03K	1.41M	-4.48M
	Investing Cash Flow
-892.98K	-244.89K	-348.56K	-215.06K	-217.76K	4.71M
	Financing Cash Flow
1.45M	505.50K	-76.84K	1.87M	-576.93K	298.39K

Tecogen Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.01

Price Trends

50DMA

2.14

Negative

100DMA

2.13

Negative

200DMA

1.49

Positive

Market Momentum

MACD

-0.08

Negative

RSI

48.30

Neutral

STOCH

76.89

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TGEN, the sentiment is Positive. The current price of 2.01 is above the 20-day moving average (MA) of 2.00, below the 50-day MA of 2.14, and above the 200-day MA of 1.49, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 48.30 is Neutral, neither overbought nor oversold. The STOCH value of 76.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TGEN.

Tecogen Risk Analysis

Tecogen disclosed 44 risk factors in its most recent earnings report. Tecogen 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

Tecogen Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$4.26B	11.28	5.43%	215.24%	4.12%	-8.73%
FLUX	56 Neutral	$27.67M	―	-385.84%	―	-5.96%	-50.28%
PPSI	53 Neutral	$29.73M	―	-43.18%	―	-19.60%	-483.35%
TGEN	47 Neutral	$48.72M	―	-38.12%	―	-10.02%	-3.51%
FCEL	42 Neutral	$78.87M	―	-18.96%	―	11.09%	0.41%
GWH	36 Underperform	$24.93M	―	-130.40%	―	-16.51%	0.19%

* Industrials Sector Average

Performance Comparison

TGEN

Tecogen

2.01

1.28

175.34%

FCEL

Fuelcell Energy

3.85

-21.41

-84.76%

PPSI

Pioneer Power Solutions

2.80

-0.16

-5.41%

FLUX

Flux Power Holdings

1.65

-2.76

-62.59%

GWH

ESS Tech

2.28

-8.32

-78.49%

Tecogen Earnings Call Summary

Earnings Call Date: Mar 17, 2025 | % Change Since: -21.79% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mix of positive developments and challenges. On one hand, the partnership with Vertiv, increased recurring revenue, and improved gross margins point to a strong strategic direction and operational efficiency. On the other hand, the company faced a decline in annual revenue and increased losses due to operational disruptions and one-time charges. The sentiment is balanced with significant potential for growth offset by short-term financial challenges.

Highlights

Sales and Marketing Agreement with Vertiv

Tecogen signed a sales and marketing agreement with Vertiv, a leader in thermal management for data centers. This partnership is expected to significantly enhance Tecogen's sales strategy and market reach, particularly in the data center segment.

Increased Recurring Revenue

Recurring revenue from service and energy increased to over $18 million for 2024, showcasing a strong growth trajectory in these segments.

Gross Profit Margin Improvement

Gross profit margin increased by five percentage points to 45%, indicating improved operational efficiencies.

Cash Position and Customer Deposits

Year-end cash position was greater than $5 million, bolstered by significant customer deposits.

Backlog and Revenue Growth Prospects

Tecogen's backlog increased to $12.2 million, with expectations of $3 million more in project closures in the coming months, indicating strong future revenue potential.

Lowlights

Operating Expenses and One-Time Charges

Operating expenses increased due to one-time charges including a $109,000 credit loss reserve and a $217,000 goodwill impairment charge.

Annual Revenue Decline

Total annual revenues decreased by 10% to $22.6 million in fiscal year 2024 compared to 2023, largely due to disruptions from a factory move.

Net Loss and EBITDA

The net loss for fiscal year 2024 was $4.8 million, with a higher adjusted EBITDA loss of $3.6 million compared to $2.6 million in 2023.

Company Guidance

During Tecogen's year-end 2024 conference call, several key metrics and forward-looking statements were highlighted. The company reported a strong backlog of $12.2 million, an increase from the previous quarter, and recurring revenue from service and energy exceeding $18 million for the year. Tecogen's fourth-quarter revenues were $6.1 million, aligning with their forecast and marking a 3% increase from the previous year. The gross profit margin rose by five percentage points to 45%, despite increased operating expenses due to a $109,000 credit loss reserve and a $217,000 goodwill impairment charge. The company maintained a cash position exceeding $5 million at year-end. Looking ahead, Tecogen anticipates higher revenues in 2025, driven by product revenue growth and an exciting partnership with Vertiv, which is expected to enhance their market presence in the data center cooling sector. Additionally, the company's EBITDA and adjusted EBITDA losses for Q4 2024 were $1 million and $692,000, respectively, showing improvement from the previous year's losses.

Tecogen Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Tecogen’s President Increases Commitment Amid Growth Plans

Positive

Mar 11, 2025

In February 2025, Tecogen Inc. announced that President and COO Robert A. Panora increased his commitment to full-time to address anticipated growth opportunities, leading to a salary increase. Additionally, the company hired a new Manufacturing Manager in January 2025 to enhance production, and Vice President of Operations Joseph E. Gehret departed in February 2025 but will remain available for consultations for up to a year.

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.