Tecogen (TGEN) AI Stock Analysis

• Market Cap: $156.10M
• Dividend Yield: N/A
• Average Volume (3M): 674.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• 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: 864,928
• 30 Day Avg. Volume: 674,534
• 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: 1.55
• Enterprise Value/Revenue: 8.67
• Enterprise Value/Gross Profit: 22.76
• Enterprise Value/Ebitda: -55.33
• 1Y Price Target: $15.00
• Price Target Upside: 186.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.17
• Revenue Forecast (FY): $28.53M

• Rating: 41 Neutral
• Price Target: $5.00 ▼(-4.40% Downside)

Tecogen's overall stock score is primarily impacted by its weak financial performance and concerning valuation metrics. The technical analysis indicates bearish momentum, further weighing down the score. While there is potential growth in the data center market, the company's financial challenges and negative valuation metrics are significant risks.

Positive Factors

Revenue Growth

The significant increase in product revenue indicates strong demand for Tecogen's offerings, suggesting robust market positioning and potential for sustained growth.

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial flexibility, allowing Tecogen to invest in growth opportunities without the burden of interest payments.

Data Center Market Expansion

Engagement with major tech companies in the data center market could drive long-term growth, positioning Tecogen as a key player in a rapidly expanding sector.

Negative Factors

Increased Net Loss

Rising net losses highlight ongoing profitability challenges, which could hinder Tecogen's ability to reinvest in its business and sustain operations.

Decreased Gross Profit and Margins

Declining gross margins indicate cost pressures and operational inefficiencies, potentially impacting long-term profitability and competitive positioning.

Higher Operating Expenses

Rising operating expenses can strain financial resources, reducing Tecogen's ability to invest in growth and innovation, impacting future competitiveness.

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: 5.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 5.23 is below the 20-day moving average (MA) of 6.22, below the 50-day MA of 7.49, and below the 200-day MA of 6.26, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 35.71 is Neutral, neither overbought nor oversold. The STOCH value of 23.74 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	82 Outperform	$133.25M	14.42	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	$97.40M	56.85	1.26%	―	12.94%	-81.09%
FCEL	45 Neutral	$419.61M	-1.12	-26.12%	―	41.05%	-1.02%
TGEN	41 Neutral	$156.10M	-25.39	-29.60%	―	24.01%	5.55%
SDST	26 Underperform	$29.85M	-0.79	―	―	―	61.78%

Tecogen Corporate Events

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.