Tecogen (TGEN) AI Stock Analysis

• Market Cap: $212.88M
• Dividend Yield: N/A
• Average Volume (3M): 907.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: 9.84%
• EPS Growth: 15.29%
• Country: US
• Employees: 91
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.06
• Shares Outstanding: 29,690,798
• 10 Day Avg. Volume: 688,204
• 30 Day Avg. Volume: 907,844
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 6.61
• Enterprise Value/Gross Profit: 15.93
• Enterprise Value/Ebitda: -48.35
• 1Y Price Target: $11.00
• Price Target Upside: 55.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: $7.00 ▼(-1.27% Downside)

Tecogen's overall stock score reflects significant financial challenges, including negative profitability and cash flow issues, which are the most impactful factors. While technical indicators and valuation metrics are unfavorable, recent corporate events and strategic initiatives provide some positive momentum.

Positive Factors

Revenue Growth

The significant increase in product revenues indicates strong demand and successful market penetration, supporting long-term growth prospects.

Data Center Strategy

The data center strategy represents a structural growth opportunity, potentially expanding Tecogen's market reach and revenue base.

Debt Elimination

Eliminating debt improves financial stability and reduces interest expenses, enhancing Tecogen's ability to invest in growth initiatives.

Negative Factors

Negative Profit Margins

Negative profit margins indicate operational inefficiencies and cost management challenges, which could hinder long-term profitability.

Cash Flow Challenges

Negative cash flow growth suggests liquidity issues, potentially limiting Tecogen's ability to fund operations and strategic initiatives.

Service Segment Decline

Declining service segment performance could impact recurring revenue streams, affecting Tecogen's overall financial health.

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 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 faces significant financial challenges across its income statement, balance sheet, and cash flow. Despite revenue growth, profitability remains elusive with negative margins and cash flow issues, highlighting the need for strategic improvements.

Income Statement

Tecogen's income statement reveals a challenging financial environment. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 41.47%, which is a decline from previous years, indicating pressure on cost management. The net profit margin is negative at -16.17%, reflecting ongoing losses. Despite a revenue growth rate of 10.83% in the TTM, profitability remains a concern with negative EBIT and EBITDA margins, suggesting operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.29 in the TTM, indicating manageable leverage levels. However, the return on equity is negative at -42.20%, highlighting significant challenges in generating returns for shareholders. The equity ratio stands at 32.09%, suggesting a stable capital structure but with room for improvement in asset utilization.

Cash Flow

Cash flow analysis indicates a negative free cash flow growth rate of -130.19% in the TTM, pointing to cash flow challenges. The operating cash flow to net income ratio is low at 0.01, and the free cash flow to net income ratio is negative, reflecting difficulties in converting income into cash. These metrics suggest potential liquidity issues and the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.28M	22.62M	25.14M	25.00M	24.40M	28.25M
Gross Profit	10.90M	9.87M	10.20M	11.07M	11.59M	10.83M
EBITDA	-3.59M	-4.01M	-3.91M	-1.90M	-752.32K	-5.65M
Net Income	-4.24M	-4.76M	-4.60M	-2.45M	3.70M	-6.15M
Balance Sheet
Total Assets	28.35M	31.09M	27.79M	28.25M	32.36M	30.07M
Cash, Cash Equivalents and Short-Term Investments	1.64M	5.41M	1.35M	1.91M	3.61M	1.49M
Total Debt	3.69M	3.73M	1.48M	1.31M	1.96M	3.60M
Total Liabilities	19.41M	20.97M	13.14M	9.27M	11.23M	12.81M
Stockholders Equity	9.10M	10.23M	14.75M	19.09M	21.21M	17.31M
Cash Flow
Free Cash Flow	-495.89K	3.09M	-870.17K	-1.70M	310.49K	1.22M
Operating Cash Flow	194.63K	4.06M	-823.32K	-1.35M	465.03K	1.41M
Investing Cash Flow	-766.33K	-1.01M	-244.89K	-348.56K	-215.06K	-217.76K
Financing Cash Flow	1.37M	1.01M	505.50K	-76.84K	1.87M	-576.93K

Tecogen Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.09
• 50DMA: Negative
• 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 Neutral. The current price of 7.09 is below the 20-day moving average (MA) of 7.86, below the 50-day MA of 8.05, and above the 200-day MA of 4.21, indicating a neutral trend. The MACD of -0.37 indicates Positive momentum. The RSI at 43.64 is Neutral, neither overbought nor oversold. The STOCH value of 34.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TGEN.

Tecogen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
PPSI	59 Neutral	$46.60M	―	-43.18%	―	-19.60%	-483.35%
TGEN	49 Neutral	$212.88M	―	-39.83%	―	9.84%	15.29%
FCEL	46 Neutral	$208.63M	―	-29.51%	―	78.82%	-20.81%
FLUX	45 Neutral	$28.45M	―	-1582.76%	―	-1.45%	-15.76%
GWH	43 Neutral	$20.81M	―	-207.48%	―	-16.98%	2.43%
RAYA	―	$7.06M	―	-4.77%	―	―	―

Tecogen Corporate Events

Tecogen Eliminates Debt with Promissory Note Prepayment

Tecogen Inc., a Delaware corporation, approved the prepayment of two promissory notes totaling $1 million, originally issued to John N. Hatsopoulos, a company director. The prepayments, made on September 3 and 4, 2025, amounted to $1,076,955.62, including interest, and eliminated the company’s outstanding debt and future interest charges of approximately $46,159.

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.