Cielo Waste Solutions (CMC) AI Stock Analysis

• Market Cap: C$7.06M
• Dividend Yield: N/A
• Average Volume (3M): 61.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: N/A
• EPS Growth: -66.57%
• Country: CA
• Employees: 22
• Sector: Energy
• Sector Strength: 50
• Industry: Waste Management
• EPS (TTM): -0.20
• Shares Outstanding: 117,686,800
• 10 Day Avg. Volume: 85,356
• 30 Day Avg. Volume: 61,144
• PEG Ratio: <0.01
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 25 Underperform
• Price Target: ―

Cielo Waste Solutions' stock faces significant challenges, with its financial instability being the most critical factor. The lack of revenue, high losses, and weak balance sheet pose severe risks. Technical analysis supports a bearish outlook, while valuation metrics and recent corporate events further highlight the stock's precarious position.

Cielo Waste Solutions Business Overview & Revenue Model

Company Description

Cielo Waste Solutions (CMC) is a Canadian-based environmental technology company that focuses on converting waste materials into renewable fuels. The company operates in the renewable energy sector and specializes in the production of high-grade renewable diesel from waste feedstocks, including municipal solid waste, construction debris, and agricultural waste. Cielo's core technology is a proprietary process that transforms these waste materials into valuable energy products, contributing to a sustainable and circular economy.

How the Company Makes Money

Cielo Waste Solutions generates revenue through the sale of renewable diesel and other byproducts created from their waste-to-fuel conversion process. The company's revenue model primarily revolves around the commercialization of its renewable fuel products, which are sold to various industries seeking to reduce their carbon footprint and meet regulatory requirements for renewable energy consumption. Additionally, Cielo may engage in strategic partnerships with waste management companies and municipalities to secure a steady supply of feedstock materials, thus ensuring continuous production and sales. These partnerships and the increasing demand for sustainable energy solutions are significant factors contributing to Cielo's earnings.

Cielo Waste Solutions Financial Statement Overview

Summary

Cielo Waste Solutions is facing significant financial challenges with zero revenue, increasing losses, and a weakened balance sheet. Negative cash flows highlight its struggle to generate cash, indicating financial instability.

Income Statement

Cielo Waste Solutions has consistently reported zero revenue over the past years, indicating a lack of operational success. The company is also suffering from negative net income and growing operating losses, as evidenced by the significant negative EBIT and EBITDA figures. The company has not shown any revenue growth, which is a critical concern for future profitability and sustainability.

Balance Sheet

The company's balance sheet reveals a substantial decrease in total assets and equity over recent periods. The debt-to-equity ratio is concerning, with total debt exceeding equity in recent years. However, the debt levels have decreased, which is a positive sign. The equity ratio has also deteriorated, indicating reduced financial stability and a potential risk for creditors.

Cash Flow

Cielo Waste Solutions has been experiencing negative operating and free cash flows, highlighting its struggle to generate cash from operations. The company relies heavily on financing activities to support its cash needs, which is unsustainable in the long term. The free cash flow growth rate is negative, underscoring the inability to improve cash generation capabilities.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	0.00	0.00	0.00	4.20K	3.00K
Gross Profit	-3.41M	-634.00K	-443.00K	-187.00K	-200.00K
EBITDA	-8.05M	-33.13M	-13.36M	-37.99M	-3.79M
Net Income	-36.18M	-14.45M	-14.45M	-39.71M	-4.18M
Balance Sheet
Total Assets	54.95M	29.37M	53.53M	45.19M	17.68M
Cash, Cash Equivalents and Short-Term Investments	376.00K	1.33M	2.68M	17.18M	81.61K
Total Debt	4.19M	10.04M	14.84M	1.74M	10.46M
Total Liabilities	13.71M	14.57M	19.93M	20.69M	14.91M
Stockholders Equity	41.24M	14.80M	33.60M	24.51M	2.77M
Cash Flow
Free Cash Flow	-5.97M	-8.97M	-35.96M	-7.69M	-8.45M
Operating Cash Flow	-4.20M	-4.75M	-16.38M	-1.27M	-3.36M
Investing Cash Flow	-1.49M	-5.06M	-19.64M	-6.12M	-5.09M
Financing Cash Flow	4.92M	8.31M	21.52M	24.49M	8.18M

Cielo Waste Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CMC, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CMC.

Cielo Waste Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	$15.24B	9.90	6.33%	5.18%	4.06%	-67.04%
BLM	52 Neutral	C$51.29M	1,928.57	0.16%	―	49.38%	-93.75%
ECM	48 Neutral	C$39.69M	―	-2752.20%	―	153.17%	43.51%
YES	48 Neutral	C$32.24M	―	-321.92%	―	25.24%	34.24%
CMC	25 Underperform	C$7.06M	―	-168.76%	―	―	-66.57%
BAC	22 Underperform	C$7.72M	―	55.19%	―	―	35.14%

Cielo Waste Solutions Corporate Events

Cielo Waste Solutions Reaches Settlement and Sets Shareholder Meeting

Cielo Waste Solutions has reached a settlement agreement with Expander Energy and related parties to unwind certain transactions, which includes the cancellation of up to 60 million common shares and the termination of various agreements. This move is expected to stabilize Cielo’s operations by resolving legal disputes and financial obligations, potentially improving its market position. Additionally, Cielo has scheduled its annual shareholder meeting for June 24, 2025, where incumbent directors will be nominated for re-election.

Spark’s Take on TSE:CMC Stock

According to Spark, TipRanks’ AI Analyst, TSE:CMC is a Underperform.

Cielo Waste Solutions is grappling with severe financial distress, highlighted by zero revenue and increasing losses. The technical outlook is bleak, with indicators pointing to bearish momentum. Valuation remains a concern due to negative P/E and lack of dividends. Recent corporate events add further instability, making the stock highly risky.

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

Cielo Waste Solutions Shifts Focus to Green Hydrogen Amid Dispute with Expander Energy

Cielo Waste Solutions has announced a strategic shift in its operations, relocating its first commercial waste-to-fuel facility from Alberta to British Columbia and transitioning its production focus from renewable diesel to green hydrogen. This move aligns with the company’s broader strategy to capitalize on the growing demand for renewable fuels and explore funding opportunities through the British Columbia Low Carbon Fuel Standard credit program. Additionally, Cielo is engaged in a dispute resolution process with Expander Energy Inc. following the termination of several agreements, and is working with legal advisors to protect shareholder interests.

Spark’s Take on TSE:CMC Stock

According to Spark, TipRanks’ AI Analyst, TSE:CMC is a Underperform.

Cielo Waste Solutions is significantly challenged by its poor financial health, weak technical performance, and negative valuation metrics. The proposed board overhaul adds further uncertainty and potential instability. Overall, the stock faces substantial risks, and its prospects appear dim.

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

Cielo Waste Solutions Responds to Expander Energy’s Misleading Claims

Cielo Waste Solutions Corp. has issued a statement to counter what it claims are misleading assertions made by Expander Energy Inc. in a recent press release. Cielo argues that Expander’s statements contain material misstatements and are detrimental to the company and its shareholders. The company is taking steps to protect its interests and invites constructive dialogue with all shareholders, including Expander. Cielo has retained legal advisors and continues to review a requisition from Expander seeking shareholder approval for Expander to become a ‘Control Person’ of the company, which Cielo views as a concerning move.

Spark’s Take on TSE:CMC Stock

According to Spark, TipRanks’ AI Analyst, TSE:CMC is a Underperform.

Cielo Waste Solutions is significantly challenged by its poor financial health, weak technical performance, and negative valuation metrics. The proposed board overhaul adds further uncertainty and potential instability. Overall, the stock faces substantial risks, and its prospects appear dim.

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

Cielo Waste Solutions Faces Shareholder Requisition for Board Overhaul

Cielo Waste Solutions has received a shareholder meeting requisition from Expander Energy, its largest shareholder, to address significant changes in the company’s board of directors and governance structure. Expander seeks to replace the current board with its nominees and gain control of the company, attributing Cielo’s share price decline to the existing board. Cielo’s management, however, attributes the decline to broader market conditions and is committed to its turnaround strategy for long-term growth, emphasizing ongoing dialogue with shareholders and good governance.

Cielo Waste Solutions Shifts Focus to Green Hydrogen in British Columbia

Cielo Waste Solutions announced the relocation of its first planned waste-to-fuel facility from Alberta to British Columbia, shifting its production focus from Renewable Diesel to Green Hydrogen. This strategic move aligns with the company’s commitment to renewable energy and allows it to leverage financial incentives from the British Columbia Low Carbon Fuel Standard credit program. Additionally, Cielo has decided not to proceed with the acquisition of the Enhanced Gas to Liquids facility due to market uncertainties and regulatory challenges. The company remains focused on sustainable fuel production and is exploring new partnerships and funding opportunities. Cielo is also engaged in a dispute resolution process with Expander Energy regarding disagreements over a license agreement.