Tecogen (TGEN) AI Stock Analysis

• Market Cap: $266.60M
• Dividend Yield: N/A
• Average Volume (3M): 970.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -8.61%
• EPS Growth: -2.30%
• Country: US
• Employees: 91
• Sector: Industrials
• Sector Strength: 84
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.06
• Shares Outstanding: 29,556,376
• 10 Day Avg. Volume: 960,045
• 30 Day Avg. Volume: 970,357
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.21
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 5.27
• Enterprise Value/Ebitda: -14.94
• 1Y Price Target: $10.50
• Price Target Upside: 16.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $10.50 ▲(16.41% Upside)

Tecogen's overall stock score reflects a mix of challenges and opportunities. The company's strong technical indicators and positive earnings call sentiment are significant strengths. However, the financial performance and valuation concerns, due to consistent net losses and a negative P/E ratio, require attention. Recent corporate events add positively to the outlook, suggesting strategic growth potential.

Tecogen Business Overview & Revenue Model

Company Description

Tecogen Inc. (TGEN) is a leading provider of clean energy solutions, primarily focused on the development and sale of natural gas-powered combined heat and power (CHP) systems, which are used for heating, cooling, and electricity generation. The company operates in the energy sector, offering products that significantly reduce energy costs and greenhouse gas emissions for commercial and industrial clients. Tecogen's core offerings include its high-efficiency engines, heat recovery systems, and related services, all designed to optimize energy use and improve sustainability for its customers.

How the Company Makes Money

Tecogen generates revenue through the sale of its natural gas-powered CHP systems, which are installed in various commercial and industrial applications. The company has a diverse revenue model that includes equipment sales, installation services, and ongoing maintenance contracts. Key revenue streams come from the initial sale of its energy systems, as well as follow-on revenues from service agreements that ensure the optimal operation of the systems over time. Additionally, Tecogen may benefit from partnerships with energy management firms and utility companies that promote the adoption of its technology, further enhancing its market presence and revenue potential.

Tecogen Financial Statement Overview

Summary

Tecogen exhibits weak profitability with consistent net losses, moderate profit margins, and negative EBIT/EBITDA margins. The balance sheet shows low leverage but declining equity, while cash flow improvements are evident despite continued operating losses.

Income Statement

The company exhibits weak profitability metrics with a consistent net loss over the periods. The TTM (Trailing-Twelve-Months) shows a slight revenue increase of 4.8% compared to the previous annual report, but gross profit margin remains moderate at 44.3%. Both EBIT and EBITDA margins are negative, indicating operational challenges.

Balance Sheet

Tecogen has a manageable debt-to-equity ratio of 0.19 in the TTM, showing low financial leverage. The equity ratio is 32.5%, providing stability, but the overall stockholders' equity has declined over recent periods, suggesting weakening financial strength.

Cash Flow

Free cash flow has improved in the TTM with a growth rate of approximately -46.8% from the previous year, indicating better cash management despite operating losses. The operating cash flow to net income ratio is negative, reflecting the net losses, but the company maintains positive free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.62M	25.14M	25.00M	24.40M	28.25M
Gross Profit	9.87M	10.20M	11.07M	11.59M	10.83M
EBITDA	-4.01M	-3.88M	-1.90M	4.24M	-5.65M
Net Income	-4.76M	-4.60M	-2.45M	3.70M	-6.15M
Balance Sheet
Total Assets	31.09M	27.79M	28.25M	32.36M	30.07M
Cash, Cash Equivalents and Short-Term Investments	5.41M	1.35M	1.91M	3.61M	1.49M
Total Debt	3.73M	1.48M	1.31M	1.96M	3.60M
Total Liabilities	20.97M	13.14M	9.27M	11.23M	12.81M
Stockholders Equity	10.23M	14.75M	19.09M	21.21M	17.31M
Cash Flow
Free Cash Flow	3.09M	-870.17K	-1.70M	310.49K	1.22M
Operating Cash Flow	4.06M	-823.32K	-1.35M	465.03K	1.41M
Investing Cash Flow	-1.01M	-244.89K	-348.56K	-215.06K	-217.76K
Financing Cash Flow	1.01M	505.50K	-76.84K	1.87M	-576.93K

Tecogen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 9.02 is above the 20-day moving average (MA) of 8.20, above the 50-day MA of 7.35, and above the 200-day MA of 3.47, indicating a bullish trend. The MACD of 0.53 indicates Positive momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 53.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TGEN.

Tecogen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TGEN	68 Neutral	$266.60M	―	-36.98%	―	-8.61%	-2.30%
Sector *	64 Neutral	$10.66B	16.26	6.50%	2.14%	2.69%	-21.81%
PPSI	57 Neutral	$35.58M	―	-43.18%	―	-19.60%	-483.35%
FLUX	45 Neutral	$28.12M	―	-1582.76%	―	-1.45%	-15.76%
GWH	43 Neutral	$24.64M	―	-172.05%	―	-58.05%	-6.90%
FCEL	42 Neutral	$92.76M	―	-20.52%	―	48.62%	0.23%

Tecogen Corporate Events

Tecogen Raises $18.2 Million to Boost Operations

Tecogen reported its second quarter 2025 financial results, showing a revenue increase to $7.29 million from $4.73 million in 2024, despite a net loss of $1.47 million. The company highlighted progress in its data center strategy, with a significant pilot project underway, and noted challenges such as reduced gross profit margins due to initial costs of new products and regional service issues. Tecogen also raised $18.2 million in July to enhance manufacturing and marketing efforts, aiming to scale up operations and capitalize on potential large-scale projects.

Tecogen Appoints Roger Deschenes as New CFO

On July 28, 2025, Tecogen Inc. announced the appointment of Roger Deschenes as Chief Financial Officer and Treasurer. Deschenes, who has been with the company for five years as Chief Accounting Officer, brings extensive public company experience to his new role. This appointment is seen as a strategic move to enhance Tecogen’s financial systems and support its growth. Additionally, on July 24, 2025, Tecogen’s Board of Directors authorized Dr. Rangesh to issue stock options to non-executive employees, with a total value not exceeding $200,000, to incentivize and retain talent.

Tecogen Completes Public Offering to Raise $18M

On July 21, 2025, Tecogen Inc. announced the closing of an underwritten public offering of 3,985,000 shares of common stock at $5.00 per share, raising approximately $18,160,750 in net proceeds. The company plans to use the funds for product development, sales and marketing activities, human resources, capital expenditures, and expansion into the data center market, which could enhance its market positioning and operational capabilities.

Tecogen Announces Public Offering of Common Stock

On July 18, 2025, Tecogen Inc. announced the pricing of an underwritten public offering of 3,500,000 shares of its common stock at $5 per share, expected to close on or about July 21, 2025. The gross proceeds from this offering are anticipated to be approximately $17.5 million, with an option for underwriters to purchase an additional 485,000 shares. The company plans to use the net proceeds for product development, sales and marketing activities, expansion into the data center market, and other corporate purposes.

Tecogen Holds Annual Stockholders Meeting on June 10

On June 10, 2025, Tecogen Inc. held its Annual Meeting of Stockholders where two key proposals were presented. The first proposal involved the election of seven directors, all of whom were successfully elected to serve until the 2026 annual meeting. The second proposal was the ratification of Wolf & Company, P.C. as the independent registered public accountants for the fiscal year ending December 31, 2025, which was approved by a majority vote.