Tecogen (TGEN)
:TGEN
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Tecogen
(TGEN)
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Rating:51Neutral
Price Target:
$3.50
▼(-10.71% Downside)
Action:ReiteratedDate:04/14/26
The score is held back primarily by weak financial performance (ongoing losses and a sharp TTM cash flow reversal) despite a relatively low-leverage balance sheet. Technicals are mixed with only short-term strength, while valuation is hard to support with a negative P/E and no dividend. The earnings call adds some upside optionality via the Vertiv-linked pipeline and planned OpEx reductions, but execution and timing risk remain significant.
Positive Factors
Low leverage balance sheet
Tecogen's very low debt relative to equity provides a durable financial buffer while the company pursues growth and R&D. Low leverage reduces interest burden and gives flexibility to fund operational improvements or absorb continued losses without immediate refinancing pressure over the next several months.
Negative Factors
Negative cash generation
Trailing twelve‑month operating and free cash flow are strongly negative, rapidly drawing down liquidity and increasing reliance on capital markets or fundraising. Persistent cash burn constrains the firm's ability to invest in manufacturing scale or weather conversion delays without dilutive financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage balance sheet
Tecogen's very low debt relative to equity provides a durable financial buffer while the company pursues growth and R&D. Low leverage reduces interest burden and gives flexibility to fund operational improvements or absorb continued losses without immediate refinancing pressure over the next several months.
Read all positive factors
Tecogen (TGEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$117.03M
Dividend YieldN/A
Average Volume (3M)453.13K
Price to Earnings (P/E)―
Beta (1Y)1.86
Revenue Growth24.01%
EPS Growth5.55%
CountryUS
Employees91
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.13
Shares Outstanding29,855,228
10 Day Avg. Volume382,688
30 Day Avg. Volume453,131
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 Cap0.91
Enterprise Value/Revenue3.91
Enterprise Value/Gross Profit10.78
Enterprise Value/Ebitda-16.94
Forecast
1Y Price Target
$7.25Price Target Upside84.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.27
Revenue Forecast (FY)$27.43M
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: P...
How the Company Makes Money
Tecogen makes money primarily through (1) product and project revenue from selling and delivering distributed energy systems and (2) recurring service revenue from maintaining those systems after installation. Product/project revenue generally inc...
Tecogen Earnings Call Summary
Earnings Call Date:Mar 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral: The call outlined meaningful strategic progress — notably the Vertiv partnership, an upcoming 1 MW demonstration, a large data center pipeline (including projects representing 100–200 chillers and a potential 25–50 MW design footprint), qualified manufacturing partners, and strong full-year product revenue growth (+105%). However, these positive operational and commercial developments are offset by near-term financial stress: Q4 revenue and margins declined, operating expenses and asset impairments increased, product revenue was highly lumpy (Q4 products -68%), and net losses and adjusted EBITDA losses widened materially. Management has a plan to reduce OpEx starting Q2 and to cut cash burn, but timing risk on pipeline conversions and continued margin pressure leave the near-term outlook mixed.Positive Updates
Vertiv Partnership and Demonstration Project
Vertiv has designed or is designing 25–50 MW of Tecogen chillers (equivalent to ~50–100 of the 150-ton dual power source chillers). A master partnership agreement is under negotiation and a 1 MW demonstration unit (two 150-ton chillers) is expected to ship and be tested in Vertiv's controlled environment test chamber toward the end of Q2, providing independent validation under AI data center conditions.
Negative Updates
Quarterly Revenue and Margin Declines (Q4)
Q4 revenue decreased $0.8M to $5.3M from $6.1M in prior year (≈ -13.1%). Q4 gross profit fell 28% year-over-year and gross margin declined by 8.2 percentage points to 36.8% (from 45.0%).
Read all updates
Q4-2025 Updates
Positive
Negative
Vertiv Partnership and Demonstration Project
Vertiv has designed or is designing 25–50 MW of Tecogen chillers (equivalent to ~50–100 of the 150-ton dual power source chillers). A master partnership agreement is under negotiation and a 1 MW demonstration unit (two 150-ton chillers) is expected to ship and be tested in Vertiv's controlled environment test chamber toward the end of Q2, providing independent validation under AI data center conditions.
Read all positive updates
Company Guidance
The company guided to near-term operational discipline and market validation milestones while giving specific metric targets: cash on hand of $10.0M with a plan to “cut cash burn down substantially” by Q2 and to reduce OpEx toward 2024 levels beginning in Q2 (further reductions in Q3–Q4); a manufacturing throughput target of ~100 units/year (scalable) which management estimates would equate to roughly $30–$40M of product revenue, and qualified subcontractors to support that scale; a Vertiv pipeline where Vertiv has designed 25–50 MW of our chillers (equivalent to 50–100 of our 150‑ton dual‑power chillers) and a 1 MW (two 150‑ton) Vertiv demo expected to ship and run by end of Q2 to validate performance (which management expects to accelerate orders for projects needing equipment by Q2/Q3 for sites targeting early‑2027 operation); a broader pipeline including a possible demo of up to 40 chillers plus 100–200 chillers across other projects and at least six additional DTX chillers in non‑data‑center segments for fall/winter delivery; service actions to raise service margins back toward ~50% (engine upgrades that increase service intervals by ~50%–100% in tests) and to address Greater NYC/Toronto margin pressure; and commercial terms that typically include 25–40% down payments, revenue recognized at shipment, and final payments in ~30–60 days.Tecogen Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
62
Positive
Cash Flow
28
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.07M | 22.62M | 25.14M | 25.00M | 24.40M |
| Gross Profit | 9.82M | 9.87M | 10.20M | 11.07M | 11.59M |
| EBITDA | -6.25M | -3.98M | -3.85M | -1.90M | 4.27M |
| Net Income | -8.25M | -4.76M | -4.60M | -2.45M | 3.70M |
Balance Sheet | |||||
| Total Assets | 36.99M | 31.09M | 27.79M | 28.25M | 32.36M |
| Cash, Cash Equivalents and Short-Term Investments | 12.43M | 5.41M | 1.35M | 1.91M | 3.61M |
| Total Debt | 2.82M | 3.73M | 1.48M | 1.31M | 1.96M |
| Total Liabilities | 15.52M | 20.97M | 13.14M | 9.27M | 11.23M |
| Stockholders Equity | 21.65M | 10.23M | 14.75M | 19.09M | 21.21M |
Cash Flow | |||||
| Free Cash Flow | -10.31M | 3.09M | -864.66K | -1.70M | 310.49K |
| Operating Cash Flow | -9.91M | 4.06M | -817.81K | -1.35M | 465.03K |
| Investing Cash Flow | -464.13K | -1.01M | -244.89K | -348.56K | -215.06K |
| Financing Cash Flow | 17.40M | 1.01M | 500.00K | 0.00 | 1.87M |
Tecogen Technical Analysis
Neutral
3.92
Price Trends
3.16
Positive
4.31
Negative
6.28
Negative
Market Momentum
0.12
Negative
65.89
Neutral
87.90
Negative
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 3.92 is above the 20-day moving average (MA) of 2.78, above the 50-day MA of 3.16, and below the 200-day MA of 6.28, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 65.89 is Neutral, neither overbought nor oversold. The STOCH value of 87.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TGEN.
Tecogen Risk Analysis
Tecogen disclosed 44 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $191.73M | 11.56 | 19.09% | 3.00% | 4.90% | 31.13% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $122.92M | -3.21 | -4.35% | ― | 12.94% | -81.09% | |
51 Neutral | $117.03M | -9.22 | -50.12% | ― | 24.01% | 5.55% | |
45 Neutral | $398.92M | -4.17 | -26.54% | ― | 41.05% | -1.02% | |
44 Neutral | $27.71M | -1.44 | 209.00% | ― | ― | 61.78% | |
44 Neutral | $140.52M | -4.80 | -176.25% | ― | ― | ― |
* Industrials Sector Average
TGEN
Tecogen
3.92
2.04
108.29%
ESP
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64.80
36.79
131.37%
FCEL
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7.53
3.64
93.57%
ULBI
Ultralife
7.38
3.10
72.43%
SDST
Stardust Power
2.78
-3.32
-54.43%
NEOV
NeoVolta
3.29
1.17
55.19%
Tecogen Corporate Events
Business Operations and StrategyExecutive/Board Changes
Tecogen Extends Advisory Agreement with John N. Hatsopoulos
Positive
Apr 8, 2026
On April 8, 2026, Tecogen Inc. extended the term of its Advisory Agreement with long-time adviser John N. Hatsopoulos through March 31, 2028, continuing a relationship that was originally established in January 2018 and previously amended in 2019 ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Tecogen Reports 2025 Results, Highlights Data Center Pivot
Negative
Mar 18, 2026
Tecogen Inc., a North Billerica, Mass.-based clean energy equipment maker specializing in high-efficiency cogeneration, air conditioning and water heating systems, serves residential, commercial, recreational and industrial customers across North ...
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.