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Aduro Clean Technologies (TSE:ACT)
:ACT

Aduro Clean Technologies (ACT) AI Stock Analysis

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Aduro Clean Technologies

(ACT)

52Neutral
Aduro Clean Technologies' stock is impacted by significant financial weaknesses, particularly in profitability and cash flow. While there are promising corporate developments and strategic advancements, these have not yet translated into financial stability. Technical analysis presents a mixed outlook with some positive momentum, but caution is advised due to financial and valuation challenges.

Aduro Clean Technologies (ACT) vs. S&P 500 (SPY)

Aduro Clean Technologies Business Overview & Revenue Model

Company DescriptionAduro Clean Technologies Inc. develops water-based chemical recycling technologies that transform waste plastics, heavy crude and bitumen, and renewable oils into renewable fuels and specialty chemicals. The company is based in Sarnia, Canada.
How the Company Makes MoneyAduro Clean Technologies generates revenue primarily through the licensing of its proprietary chemical conversion technologies to companies in the waste management, recycling, and energy sectors. The company may also engage in direct sales of its technology through equipment installation and maintenance contracts. Additionally, Aduro may form strategic partnerships or joint ventures with industry players to co-develop and commercialize its solutions, sharing in the revenue generated from the commercialization of end-products. Revenue streams may also include government grants or subsidies for research and development in sustainable technologies.

Aduro Clean Technologies Financial Statement Overview

Summary
Aduro Clean Technologies faces significant profitability and cash flow challenges, with negative net profit margins and cash flows. Despite a strong equity position and low debt, operational improvements are needed for financial stability.
Income Statement
The company has shown inconsistent revenue growth, with revenue dropping from 2024 to TTM (Trailing-Twelve-Months). Gross profit margin is low at 3.2%, and there are significant net losses, leading to a negative net profit margin of -3938.0%. The company is experiencing negative EBIT and EBITDA margins, indicating ongoing operational challenges.
Balance Sheet
55
The company maintains a strong equity position with a high equity ratio of 92.8%. However, the return on equity (ROE) is negative due to net losses. The debt-to-equity ratio is low at 0.01, indicating minimal leverage, which is favorable for stability but might limit growth potential.
Cash Flow
Operating cash flow and free cash flow are negative, reflecting cash outflows from operations and capital expenditures. The free cash flow to net income ratio is negative, indicating cash flow challenges. However, the company has been able to secure financing, which has provided liquidity.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
337.52K109.63K0.0037.93K80.00K
Gross Profit
-93.64K-41.68K-60.63K37.88K-1.55K
EBIT
-7.39M-5.84M-4.76M-1.75M-200.79K
EBITDA
-6.99M-5.69M-4.97M-3.09M-157.49K
Net Income Common Stockholders
-7.44M-5.86M-5.08M-3.21M-510.51K
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.81M4.05M2.11M2.86M122.61K
Total Assets
6.96M7.58M3.22M3.03M132.04K
Total Debt
138.59K157.98K241.64K668.92K695.81K
Net Debt
-2.68M-3.89M-1.87M-2.19M601.95K
Total Liabilities
600.53K613.02K826.75K1.21M51.98K
Stockholders Equity
6.36M6.97M2.39M1.82M80.06K
Cash FlowFree Cash Flow
-6.36M-6.50M-3.71M-1.05M-192.22K
Operating Cash Flow
-5.21M-4.50M-3.30M-1.03M-189.93K
Investing Cash Flow
-1.14M-2.01M-411.00K-19.05K247.71K
Financing Cash Flow
5.11M8.44M2.96M3.86M28.35K

Aduro Clean Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.49
Price Trends
50DMA
6.93
Positive
100DMA
7.58
Positive
200DMA
6.72
Positive
Market Momentum
MACD
0.40
Negative
RSI
71.95
Negative
STOCH
81.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ACT, the sentiment is Positive. The current price of 8.49 is above the 20-day moving average (MA) of 6.75, above the 50-day MA of 6.93, and above the 200-day MA of 6.72, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 71.95 is Negative, neither overbought nor oversold. The STOCH value of 81.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ACT.

Aduro Clean Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$4.30B11.845.23%249.82%4.06%-10.21%
TSBLX
61
Neutral
C$3.15B87.642.23%2.12%-16.54%-53.85%
TSGRN
58
Neutral
C$14.12M-5.60%-10.37%95.22%
TSBLN
55
Neutral
C$565.42M-14.10%31.68%67.90%
TSACT
52
Neutral
C$215.57M-111.61%-9.70%-9.53%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ACT
Aduro Clean Technologies
8.70
7.33
535.04%
TSE:BLN
Blackline Safety
6.57
2.53
62.62%
TSE:BLX
Boralex Inc Cl A
31.39
2.31
7.94%
HMDPF
Hammond Power Solutions
69.69
-7.62
-9.86%
NPIFF
Northland Power
13.80
-1.26
-8.37%
TSE:GRN
Greenlane Renewables Inc
0.09
-0.01
-10.00%

Aduro Clean Technologies Corporate Events

Business Operations and Strategy
Aduro and Cleanfarms Collaborate on Recycling Agricultural Plastics
Positive
May 8, 2025

Aduro Clean Technologies has signed a Memorandum of Understanding with Cleanfarms to explore the commercial viability of Aduro’s Hydrochemolytic™ Technology for recycling challenging agricultural plastics. This collaboration aims to address the recycling challenges of agricultural plastics, which are often contaminated and difficult to manage, by converting them into usable hydrocarbon products, thereby enhancing resource recovery and circularity in the farming sector.

Spark’s Take on TSE:ACT Stock

According to Spark, TipRanks’ AI Analyst, TSE:ACT is a Neutral.

Aduro Clean Technologies’ stock score is impacted by significant financial weaknesses, particularly in profitability and cash flow. While there is potential for growth through strategic partnerships and innovation in clean technology, these have not yet translated into financial stability. Technical analysis presents a mixed outlook with some positive momentum, but caution is advised due to financial and valuation challenges.

To see Spark’s full report on TSE:ACT stock, click here.

Product-Related AnnouncementsBusiness Operations and Strategy
Aduro Partners with Siemens for Advanced Automation in Pilot Plant
Positive
May 1, 2025

Aduro Clean Technologies has announced a strategic collaboration with Siemens Canada to integrate advanced automation systems into its Next Generation Pilot Plant, which is set to be commissioned in Q3 2025. This partnership aims to enhance the operational efficiency and scalability of Aduro’s Hydrochemolytic™ Technology, a process that uses water to selectively break down polymers into valuable hydrocarbons. The collaboration with Siemens, known for its expertise in industrial automation, will support Aduro’s transition from pilot to commercial-scale operations, strengthening its position in the clean technology industry and contributing to the development of energy-efficient recycling platforms aligned with circular economy principles.

Spark’s Take on TSE:ACT Stock

According to Spark, TipRanks’ AI Analyst, TSE:ACT is a Neutral.

Aduro Clean Technologies is currently struggling with significant financial weaknesses, particularly in profitability and cash flow, which weigh heavily on its overall score. Although there are promising corporate developments and strategic advancements, these are not yet sufficient to overcome the financial challenges. Technical analysis also presents a mixed picture, with some positive momentum indicators but overall negative trends. The stock’s valuation, highlighted by a negative P/E ratio and lack of dividend yield, further reflects its current financial difficulties.

To see Spark’s full report on TSE:ACT stock, click here.

Business Operations and StrategyFinancial Disclosures
Aduro Clean Technologies Advances Despite Q3 Revenue Decline
Positive
Apr 15, 2025

Aduro Clean Technologies reported a decrease in revenue for the third quarter of fiscal 2025, attributed to non-recurring revenue from customer engagement programs. Despite the financial loss, the company achieved significant milestones, including the completion of the Basic Engineering Design phase for its HCT Next Generation Process pilot plant and the filing of a new patent. These advancements, along with a strong cash position and strategic hires, position Aduro well for future growth and commercialization efforts.

Spark’s Take on TSE:ACT Stock

According to Spark, TipRanks’ AI Analyst, TSE:ACT is a Neutral.

Aduro Clean Technologies presents a mixed outlook with significant financial weaknesses balanced by positive corporate developments. The company’s negative profitability and cash flow issues weigh heavily on its overall score, despite promising revenue growth and strategic advancements in technology and market presence.

To see Spark’s full report on TSE:ACT stock, click here.

Business Operations and Strategy
Aduro Clean Technologies to Engage Investors at April Conferences
Positive
Mar 26, 2025

Aduro Clean Technologies announced its participation in several investor conferences in April 2025, aiming to engage with investors and increase awareness of its innovative solutions in the circular economy and chemical recycling sectors. The company will attend the Gabelli Funds Waste & Environmental Services Symposium, LD Micro Invitational, and CEM Scottsdale Capital Event, where it seeks to highlight advancements in its technology platform and connect with investors interested in emerging clean technology solutions.

Product-Related AnnouncementsBusiness Operations and Strategy
Aduro Clean Technologies Partners with NexGen Polymers for HCT Demonstration Plant
Positive
Mar 13, 2025

Aduro Clean Technologies has signed a Memorandum of Understanding with NexGen Polymers to collaborate on the development of a demonstration-scale Hydrochemolytic Technology (HCT) plant. This partnership aims to leverage NexGen’s expertise in polymer supply chain management to support the operational requirements of Aduro’s planned demonstration facility. The collaboration aligns with Aduro’s strategic goals to efficiently scale up its technology, focusing on site selection, logistics, and feedstock supply. The MOU outlines a framework for potential joint ventures and the commissioning of a demonstration plant, marking a significant step in Aduro’s commercialization strategy.

Delistings and Listing ChangesExecutive/Board ChangesBusiness Operations and Strategy
Aduro Clean Technologies Strengthens Financial Leadership with New VP Appointment
Positive
Feb 27, 2025

Aduro Clean Technologies has appointed Neha Nisar as Vice President of Finance, bringing over two decades of experience in financial leadership and strategic planning. This appointment comes as Aduro expands following its recent Nasdaq uplisting and the start of construction for its Next Generation Process pilot plant. Neha’s expertise is expected to strengthen Aduro’s financial oversight and support its growth strategy, reinforcing its position in the clean technology sector.

Product-Related AnnouncementsBusiness Operations and Strategy
Aduro Clean Technologies to Showcase Innovations at Key Industry Conferences
Positive
Feb 18, 2025

Aduro Clean Technologies announced its participation in several key industry conferences, highlighting its Hydrochemolytic™ Technology (HCT) and its transformative impact on plastic recycling. The company aims to present its Next Generation Process (NGP) Pilot Plant and engage with industry leaders to explore collaborations for advancing sustainable recycling efforts. Through these events, Aduro seeks to showcase its technological advancements and align with regional and global sustainability strategies, potentially enhancing its industry positioning and stakeholder engagement.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.