Tecogen (TGEN) AI Stock Analysis

• Market Cap: $141.47M
• Dividend Yield: N/A
• Average Volume (3M): 725.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: 24.01%
• EPS Growth: 5.55%
• Country: US
• Employees: 91
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.07
• Shares Outstanding: 29,846,480
• 10 Day Avg. Volume: 961,999
• 30 Day Avg. Volume: 725,709
• PEG Ratio: -1.38
• Price to Book (P/B): 3.57
• Price to Sales (P/S): 1.61
• P/FCF Ratio: 11.82
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 8.67
• Enterprise Value/Gross Profit: 22.76
• Enterprise Value/Ebitda: -55.33
• 1Y Price Target: $15.00
• Price Target Upside: 204.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $4.50 ▼(-8.72% Downside)

The score is held down mainly by weak financial performance (ongoing losses and negative operating cash flow) and bearish technicals (below major moving averages with negative MACD). Offsetting factors include constructive earnings-call momentum around data center opportunities and a reported debt-free, cash-supported position, but profitability and cash flow remain the key risks.

Positive Factors

Data center strategy traction

Sustained interest from large data center developers and an LOI for six chillers signal structural demand for Tecogen’s cooling solutions. Placement in multi-hundred‑MW projects and manufacturing partnerships can create multi-year revenue streams and scale advantages in a power-constrained market.

Product revenue surge

A rapid increase in product sales indicates accelerating market acceptance of Tecogen’s CHP and chiller products. A durable shift toward product-driven revenue improves scalability and recurring service opportunities, supporting higher long‑term topline predictability if manufacturing capacity scales reliably.

Balance sheet liquidity

A debt‑free position with meaningful cash provides strategic flexibility to fund manufacturing expansion, R&D, and working capital without immediate refinancing. This liquidity buffer materially reduces short‑term solvency risk while the company pursues longer sales cycles with large data center customers.

Negative Factors

Persistent net losses

Ongoing net losses and negative operating margins limit internal reinvestment and prolong reliance on external funding to scale. Without sustained margin improvement, losses can erode equity and constrain the company’s ability to capitalize on large, multi‑year data center contracts and scale manufacturing.

Weak cash conversion

Negative operating cash flow and volatile free cash flow indicate difficulty converting revenue into sustainable cash, raising funding risk for capex and inventory tied to product ramps. Structural growth could require ongoing external capital, increasing dilution or leverage over time.

Margin pressure and rising costs

Material margin deterioration alongside rising operating expenses weakens unit economics and extends the path to profitability. If higher material, labor, and SG&A costs persist, they will compress cash generation and require sustained higher revenue growth to justify increased manufacturing and sales investments.

Tecogen Business Overview & Revenue Model

Company Description

Tecogen Inc. designs, manufactures, markets, and maintains industrial and commercial cogeneration systems for residential, commercial, recreational, and industrial use in the United States and internationally. It operates through three segments: Products, Services, and Energy Production. The company offers InVerde e+ and TecoPower, a cogeneration product that supplies electricity and hot water; TECOCHILL air-conditioning and refrigeration chillers; Tecofrost gas engine-driven refrigeration compressors; and water heaters under the Ilios brand name, as well as emissions control technology under the Ultera brand name. It also provides long-term maintenance contracts, parts sales, and turnkey installation services through a network of eleven field service centers in California, the Midwest, the Northeast, and the Southeast, as well as in Ontario, Canada. In addition, the company installs, owns, operates, and maintains distributed generation of electricity, energy, and other complementary systems. It serves hospitals and nursing homes, colleges, universities, health clubs, spas, hotels, motels, office and retail buildings, food and beverage processors, multi-unit residential buildings, laundries, ice rinks, swimming pools, factories, municipal buildings, military installations, and indoor growing facilities. The company was incorporated in 2000 and is headquartered in Waltham, Massachusetts.

How the Company Makes Money

Tecogen generates revenue primarily through the sale of its CHP systems and related products, which are installed in commercial and industrial facilities. The company earns income from product sales, installation services, and ongoing maintenance contracts. Additionally, Tecogen benefits from long-term service agreements that provide recurring revenue. The company has established partnerships with various energy companies and contractors, enhancing its market reach and sales capabilities. Furthermore, Tecogen may also receive incentives and rebates from government programs aimed at promoting energy efficiency and reducing emissions, contributing to its overall earnings.

Tecogen Financial Statement Overview

Summary

Tecogen's financial performance is challenged by persistent net losses and negative cash flows, despite modest revenue growth and a manageable debt-to-equity ratio. The negative return on equity and cash flow issues highlight the need for strategic improvements.

Income Statement

Tecogen's income statement shows a mixed performance. The company has experienced a modest revenue growth of 5.91% in the TTM period, indicating some positive momentum. However, profitability remains a significant concern, with negative net profit, EBIT, and EBITDA margins. The gross profit margin is relatively healthy at 41.47%, but the consistent net losses highlight ongoing challenges in achieving operational efficiency and profitability.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is manageable at 0.41, suggesting a reasonable level of leverage. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' investments. The equity ratio is not explicitly calculated, but the overall asset base appears stable, providing some financial stability despite profitability issues.

Cash Flow

Cash flow analysis reveals significant challenges. The operating cash flow is negative, and the free cash flow has shown substantial growth, but from a negative base, indicating volatility. The operating cash flow to net income ratio is very low, and the free cash flow to net income ratio is negative, reflecting difficulties in converting earnings into cash. This raises concerns about the company's ability to sustain operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.83M	22.62M	25.14M	25.00M	24.40M	28.25M
Gross Profit	10.60M	9.87M	10.20M	11.07M	11.59M	10.83M
EBITDA	-4.36M	-3.98M	-3.85M	-1.90M	4.27M	-5.64M
Net Income	-5.44M	-4.76M	-4.60M	-2.45M	3.70M	-6.15M
Balance Sheet
Total Assets	41.46M	31.09M	27.79M	28.25M	32.36M	30.07M
Cash, Cash Equivalents and Short-Term Investments	15.25M	5.41M	1.35M	1.91M	3.61M	1.49M
Total Debt	2.85M	3.73M	1.48M	1.31M	1.96M	3.60M
Total Liabilities	16.15M	20.97M	13.14M	9.27M	11.23M	12.81M
Stockholders Equity	25.46M	10.23M	14.75M	19.09M	21.21M	17.31M
Cash Flow
Free Cash Flow	-3.64M	3.09M	-864.66K	-1.70M	310.49K	1.22M
Operating Cash Flow	-3.16M	4.06M	-817.81K	-1.35M	465.03K	1.41M
Investing Cash Flow	-514.06K	-1.01M	-244.89K	-348.56K	-215.06K	-217.76K
Financing Cash Flow	17.64M	1.01M	500.00K	0.00	1.87M	-576.93K

Tecogen Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.93
• 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 TGEN, the sentiment is Negative. The current price of 4.93 is below the 20-day moving average (MA) of 5.03, below the 50-day MA of 6.37, and below the 200-day MA of 6.43, indicating a bearish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 42.70 is Neutral, neither overbought nor oversold. The STOCH value of 37.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TGEN.

Tecogen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESP	87 Outperform	$139.83M	15.26	18.65%	3.85%	4.90%	31.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ULBI	55 Neutral	$97.90M	60.84	1.26%	―	12.94%	-81.09%
FCEL	51 Neutral	$360.41M	-0.96	-26.12%	―	41.05%	-1.02%
TGEN	48 Neutral	$141.47M	-23.93	-29.60%	―	24.01%	5.55%
NEOV	44 Neutral	$137.21M	-25.62	-176.25%	―	―	―
SDST	43 Neutral	$38.68M	-0.97	―	―	―	61.78%

Tecogen Corporate Events

Tecogen Highlights Chiller Solutions for Power-Constrained Data Centers

On January 6, 2026, Tecogen Inc. highlighted via a LinkedIn post and an investor FAQ that its natural gas and hybrid chillers remain highly relevant to data center cooling, even as designs evolve toward higher-temperature liquid cooling and potential chiller-free configurations. The company argues that data centers will continue to require significant chiller capacity for data hall cooling and turbine inlet cooling, and that its patented hybrid drive technology can also support chiller-free sites by powering large fan systems and enabling seamless fuel switching to reduce peak electrical demand. Tecogen positions these capabilities as a way for data centers facing tightening power constraints and more acute peak pricing to maintain or expand AI computing capacity without overburdening grid-supplied electricity, underlining a strategic opportunity for its technologies in large-scale facilities such as 250 MW data centers.

The most recent analyst rating on (TGEN) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Tecogen stock, see the TGEN Stock Forecast page.

Tecogen Reports Q3 Revenue Growth Amid Net Loss

Tecogen reported a revenue increase to $7.18 million for the third quarter of 2025, up from $5.63 million in the previous year, driven by higher sales of chillers and cogeneration products. Despite this growth, the company experienced a net loss of $2.13 million, attributed to decreased gross profit in its services segment and increased operating expenses. Tecogen’s strategic advancements include potential expansion with data center customers and positive feedback from AI chip manufacturers, alongside increased R&D spending to enhance their natural gas cooling technology.

The most recent analyst rating on (TGEN) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Tecogen stock, see the TGEN Stock Forecast page.