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Tecogen
(NYSE MKT:TGEN)
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Rating:46Neutral
Price Target:
$3.50
▲(8.70% Upside)
Action:Reiterated
Date:08/17/26
The score is primarily held down by weak financial performance—deeply negative profitability and significant free-cash-flow burn—despite manageable leverage. Technicals add pressure as the stock remains below key longer-term moving averages with negative MACD. The earnings call provides some support via backlog, improving margins, and early data-center traction, but near-term results and execution/cash constraints keep overall risk elevated; valuation offers limited help due to losses (negative P/E) and no dividend.
Positive Factors
Data-center pipeline and backlog
Access to hyperscale and major data-center operators could broaden Tecogen’s addressable market beyond smaller sites. Combined with an existing backlog and expected orders, this provides a tangible foundation for future growth if pilots convert.
Negative Factors
Persistent losses and cash burn
Deep operating losses and sustained negative free cash flow reduce financial flexibility and may require external funding if performance does not improve. Continued cash consumption also limits the company’s ability to build inventory or expand capacity without added financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Data-center pipeline and backlog
Access to hyperscale and major data-center operators could broaden Tecogen’s addressable market beyond smaller sites. Combined with an existing backlog and expected orders, this provides a tangible foundation for future growth if pilots convert.
Read all positive factors
Tecogen (TGEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$107.77M
Dividend YieldN/A
Average Volume (3M)233.11K
Price to Earnings (P/E)―
Beta (1Y)2.31
Revenue Growth-6.45%
EPS Growth-106.73%
CountryUS
Employees120
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.41
Shares Outstanding30,187,822
10 Day Avg. Volume252,240
30 Day Avg. Volume233,108
Financial Highlights & Ratios
PEG Ratio-0.28
Price to Book (P/B)6.22
Price to Sales (P/S)4.97
P/FCF Ratio-13.05
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$8.75Price Target Upside171.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.24
Revenue Forecast (FY)$27.83M
Tecogen Business Overview & Revenue Model
Company Description
Tecogen Inc. specializes in the design, manufacturing, sales, and ongoing support of industrial and commercial combined heat and power (CHP) systems. These energy solutions cater to a wide range of applications—residential, commercial, recreationa...
How the Company Makes Money
Tecogen primarily generates revenue from (1) product and system sales, (2) installation and engineering-related services, and (3) recurring service/maintenance. Product revenue comes from selling distributed energy equipment such as natural-gas-po...
Tecogen Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: near-term financials were weak with a 21% revenue decline, a 64% drop in products revenue, widening net losses and higher operating costs, and one-time charges that depressed margins. Offsetting these negatives are encouraging operational developments — notably strong interest from hyperscale data centers (12 demos representing meaningful market share), an >$8M backlog with $2M–$3M expected near-term, improved overall and products gross margins, 10% growth in services revenue, and a 35% rise in energy production revenue. Management is taking actions to reduce service costs, adjust pricing, and selectively build inventory to accelerate closings. Given the combination of significant execution risk and cash/production constraints but tangible commercial traction and margin improvements, the tone is cautiously optimistic but balanced.Positive Updates
Substantial Product Interest from Hyperscale Data Centers
Hosted 12 product demonstrations (6 in-person, 6 virtual) over the last two months, including 4 in-person demos with hyperscale or hyperscale-campus data centers. Attendees collectively represent >8 GW of operating capacity and multiple GW under construction and roughly 15%–20% of current U.S. data center capacity. Management reports very positive feedback and believes pilot projects with large brands could be transformational.
Negative Updates
Significant Decline in Total Revenue
Total revenues decreased 21% year-over-year (down $1.5 million) to $5.8 million in Q2 2026 from $7.3 million in Q2 2025, primarily due to lower product segment revenue.
Read all updates
Q2-2026 Updates
Positive
Negative
Substantial Product Interest from Hyperscale Data Centers
Hosted 12 product demonstrations (6 in-person, 6 virtual) over the last two months, including 4 in-person demos with hyperscale or hyperscale-campus data centers. Attendees collectively represent >8 GW of operating capacity and multiple GW under construction and roughly 15%–20% of current U.S. data center capacity. Management reports very positive feedback and believes pilot projects with large brands could be transformational.
Read all positive updates
Company Guidance
Management guided that revenue should rise in Q3 as product bookings convert — noting a base business backlog of >$8.0M plus an expected $2.0M–$3.0M of additional projects to close in the next few months — and that collecting more deposits and building some inventory of dual‑source chillers/Tecogen modules will improve cash flow and compress lead times. They expect the full benefit of mid‑Q2 service cost reductions to be realized beginning in Q3 (Q2 included roughly $300k of one‑time service costs that knocked service margins down ≈7 percentage points), even as Q2 operating expenses were $4.3M (up 11.6% YoY) and adjusted EBITDA was a loss of $1.7M. For context, Q2 results were: total revenue $5.8M (down 21% YoY, −$1.5M), gross profit $2.2M (down 11.9%), gross margin 37.8% (up ~4 ppt), net loss $2.2M (vs $1.5M LY); products revenue $1.1M (down 64% YoY) with product gross margin 48.5% (up 19.2 ppt), services revenue $4.4M (up 10% YoY) with largely flat service margin excluding one‑times, and energy production revenue $240k (up 35%) with a guarantee shortfall just under $100k. Management emphasized that recent commercial traction — 12 demonstrations (6 in‑person, 6 virtual) representing >8 GW of operating capacity and ~15–20% of U.S. data center capacity — could materially accelerate bookings if pilot projects are secured.Tecogen Financial Statement Overview
Summary
Income Statement
26
Negative
Balance Sheet
63
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.92M | 27.07M | 22.62M | 25.14M | 25.00M | 24.40M |
| Gross Profit | 11.49M | 9.82M | 9.87M | 10.20M | 11.07M | 11.59M |
| EBITDA | -11.39M | -7.20M | -3.78M | -3.88M | -1.90M | 4.27M |
| Net Income | -12.51M | -8.25M | -4.76M | -4.60M | -2.45M | 3.70M |
Balance Sheet | ||||||
| Total Assets | 31.60M | 36.99M | 31.09M | 27.79M | 28.25M | 32.36M |
| Cash, Cash Equivalents and Short-Term Investments | 6.78M | 12.43M | 5.41M | 1.35M | 1.91M | 3.61M |
| Total Debt | 2.62M | 2.82M | 3.73M | 1.48M | 1.31M | 1.96M |
| Total Liabilities | 14.05M | 15.52M | 20.97M | 13.14M | 9.27M | 11.23M |
| Stockholders Equity | 17.72M | 21.65M | 10.23M | 14.75M | 19.09M | 21.21M |
Cash Flow | ||||||
| Free Cash Flow | -11.84M | -10.31M | 3.09M | -864.66K | -1.70M | 310.49K |
| Operating Cash Flow | -11.60M | -9.91M | 4.06M | -817.81K | -1.35M | 465.03K |
| Investing Cash Flow | -161.68K | -464.13K | -1.01M | -244.89K | -348.56K | -215.06K |
| Financing Cash Flow | 16.90M | 17.40M | 1.01M | 500.00K | 0.00 | 1.87M |
Tecogen Technical Analysis
Negative
3.22
Price Trends
4.36
Negative
4.49
Negative
4.76
Negative
Market Momentum
-0.12
Negative
41.39
Neutral
9.61
Positive
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 3.22 is below the 20-day moving average (MA) of 3.59, below the 50-day MA of 4.36, and below the 200-day MA of 4.76, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 41.39 is Neutral, neither overbought nor oversold. The STOCH value of 9.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TGEN.
Tecogen Risk Analysis
Tecogen disclosed 42 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $192.43M | 16.22 | 20.38% | 3.05% | -8.09% | 42.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $121.14M | -18.16 | -6.14% | ― | 4.69% | -304.68% | |
53 Neutral | $1.79B | -3.40 | -31.69% | ― | 29.71% | 11.38% | |
49 Neutral | $214.26M | -11.37 | -142.24% | ― | 324.67% | -158.36% | |
46 Neutral | $107.77M | -8.62 | -59.21% | ― | -6.45% | -106.73% | |
44 Neutral | $9.41M | -0.37 | 302.33% | ― | ― | 67.65% |
* Industrials Sector Average
TGEN
Tecogen
3.50
-5.06
-59.11%
ESP
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64.95
21.60
49.82%
FCEL
Fuelcell Energy
21.70
17.66
437.13%
ULBI
Ultralife
7.11
0.46
6.92%
SDST
Stardust Power
0.62
-3.38
-84.47%
NEOV
NeoVolta
3.43
-0.51
-12.85%
Tecogen Corporate Events
Business Operations and StrategyFinancial Disclosures
Tecogen Reports Weak Q2 Results, Highlights Data Center Focus
Negative
Aug 12, 2026
On August 12, 2026, Tecogen reported second-quarter 2026 revenues of $5.75 million and a net loss of $2.15 million for the period ended June 30, 2026, down from $7.29 million in revenue and a $1.46 million net loss a year earlier, with cash and eq...
Business Operations and StrategyExecutive/Board Changes
Tecogen Boosts Executive Pay and Long-Term Equity Incentives
Positive
Jul 1, 2026
On June 26, 2026, Tecogen’s board approved new equity awards under its 2022 Stock Incentive Plan for CEO Abinand Rangesh and other named executives, including restricted stock and incentive stock options that vest in equal installments over ...
Executive/Board ChangesShareholder Meetings
Tecogen Shareholders Reelect Board and Back Executive Compensation
Positive
Jun 5, 2026
At Tecogen Inc.’s 2026 annual meeting of stockholders held on June 5, 2026, shareholders elected seven directors to serve until the 2027 annual meeting, reaffirming the company’s existing leadership and governance structure. Stockholde...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.