CHAR Technologies (YES) AI Stock Analysis

• Market Cap: C$32.89M
• Dividend Yield: N/A
• Average Volume (3M): 95.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: 25.24%
• EPS Growth: 34.24%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 93
• Industry: Waste Management
• EPS (TTM): -0.01
• Shares Outstanding: 128,962,140
• 10 Day Avg. Volume: 160,537
• 30 Day Avg. Volume: 95,848
• PEG Ratio: -0.33
• Price to Book (P/B): 46.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.44
• 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: C$0.50
• Price Target Upside: 92.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

The overall stock score is primarily influenced by significant financial challenges, including high leverage and negative cash flows, which weigh heavily on the score. However, positive corporate events, such as strategic investments and partnerships, provide growth potential and offset some of the financial risks.

CHAR Technologies Business Overview & Revenue Model

Company Description

CHAR Technologies Ltd. is a Canadian company operating in the renewable energy and clean technology sectors. It specializes in the development and commercialization of high-temperature pyrolysis technology, which converts organic waste into renewable gases and biochar. The company's core products include biocarbon and renewable natural gas (RNG) solutions aimed at reducing greenhouse gas emissions and promoting sustainable energy practices.

How the Company Makes Money

CHAR Technologies generates revenue primarily through the sale of its renewable energy products and services. The company monetizes its high-temperature pyrolysis technology by offering solutions that convert organic waste into valuable outputs like renewable natural gas and biocarbon. Key revenue streams include the sale of these renewable gases to industrial clients and energy companies, as well as the sale of biocarbon for use in soil amendment, water filtration, and as a carbon-neutral fuel source. Additionally, CHAR Technologies may engage in strategic partnerships with other companies to expand its market reach and enhance its technology offerings, contributing to its revenue growth.

CHAR Technologies Financial Statement Overview

Summary

CHAR Technologies faces significant financial challenges with volatile revenue, modest gross margins, and consistent operating losses. High leverage and negative ROE reflect substantial financial risk, while negative cash flows indicate liquidity concerns and operational inefficiencies.

Income Statement

The income statement shows a volatile revenue pattern with recent TTM revenue at $3.00M, decreasing from the previous annual $3.16M. Gross margins are modest at 22.97% for TTM with a consistent negative net profit margin of -231.05%. EBIT and EBITDA margins indicate operational challenges. Despite some gross profit, the company struggles with significant operating losses.

Balance Sheet

The balance sheet indicates high leverage with a debt-to-equity ratio of 8.46 for TTM, reflecting substantial financial risk. ROE is negative, at -1213.77%, due to high losses. The equity ratio is low at 3.95%, suggesting limited asset financing through equity. The company faces considerable financial stability challenges.

Cash Flow

Cash flows are under pressure, with operating cash flow and free cash flow both negative. The free cash flow to net income ratio is consistent with the substantial losses, and the operating cash flow to net income ratio is 0.83, indicating inefficiencies in converting sales to cash flow. The cash flow situation suggests liquidity concerns.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	3.16M	2.00M	1.46M	1.38M	1.76M
Gross Profit	631.58K	640.17K	642.01K	709.26K	909.42K
EBITDA	-6.08M	-6.52M	-5.10M	-2.42M	-137.21K
Net Income	-8.33M	-8.43M	-6.90M	-3.26M	-703.80K
Balance Sheet
Total Assets	15.35M	18.87M	9.95M	10.32M	3.41M
Cash, Cash Equivalents and Short-Term Investments	948.69K	6.09M	460.48K	3.00M	129.13K
Total Debt	5.04M	3.81M	886.90K	308.57K	301.51K
Total Liabilities	14.88M	11.93M	5.25M	4.78M	2.10M
Stockholders Equity	471.69K	6.93M	4.70M	5.54M	1.31M
Cash Flow
Free Cash Flow	-7.44M	-9.45M	-7.82M	-3.75M	-394.31K
Operating Cash Flow	-3.99M	-4.86M	-5.03M	-2.21M	-368.10K
Investing Cash Flow	548.43K	-8.60M	-2.79M	-1.55M	-26.21K
Financing Cash Flow	2.30M	15.09M	5.28M	6.63M	298.04K

CHAR Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:YES, the sentiment is Positive. The current price of 0.26 is below the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.24, and above the 200-day MA of 0.21, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.33 is Neutral, neither overbought nor oversold. The STOCH value of 8.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:YES.

CHAR Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BLM	53 Neutral	C$59.10M	2,028.57	0.16%	―	49.38%	-93.75%
ECM	51 Neutral	C$46.49M	―	-2752.20%	―	153.17%	43.51%
ROOF	51 Neutral	C$45.87M	―	-2757.94%	―	191.62%	-57.36%
Sector *	50 Neutral	C$3.01B	2.40	-63.12%	2.48%	4.49%	-6.07%
YES	48 Neutral	C$32.89M	―	-321.92%	―	25.24%	34.24%

CHAR Technologies Corporate Events

CHAR Technologies Secures $8 Million Investment for Thorold Renewable Energy Facility

CHAR Technologies Ltd. has announced an $8 million investment from The BMI Group into its Thorold Renewable Energy Facility, resulting in a 50/50 ownership of the facility. This strategic partnership aims to enhance CHAR Tech’s capabilities in renewable energy production, with Phase 1 focusing on biocarbon production and Phase 2 targeting Renewable Natural Gas (RNG) production. The investment is part of a broader initiative to secure long-term revenue stability and strengthen project economics through additional investments and partnerships. The collaboration with BMI is expected to unlock significant growth opportunities and advance CHAR Tech’s pipeline of renewable energy projects.

CHAR Technologies Extends Warrants and Grants Incentives

CHAR Technologies Ltd. has announced an extension of the expiration date for 2,750,000 common share purchase warrants held by ArcelorMittal, now set to expire on July 5, 2026, pending TSX Venture Exchange approval. This extension, considered a related party transaction, will use proceeds for corporate purposes. Additionally, CHAR Tech has granted stock options and restricted share units to a consultant, reinforcing its commitment to incentivizing key stakeholders.

CHAR Technologies Secures C$2M for Renewable Energy Projects

CHAR Technologies Ltd. has successfully completed a C$2 million private placement with The BMI Group, marking a significant step in their strategic partnership. The funds will be used to advance the Thorold Renewable Energy Facility and the Bioveld North Espanola project, enhancing CHAR Tech’s position in sustainable energy projects and supporting its operational growth.

CHAR Technologies Partners for PFAS Destruction Pilot in Baltimore

CHAR Technologies Ltd. has partnered with Synagro Technologies, Inc. and the Baltimore City Department of Public Works to test a commercial-scale high temperature pyrolysis (HTP) pilot aimed at destroying PFAS chemicals from biosolids. This initiative, demonstrated at the Synagro Back River Facility, represents a significant advancement in addressing environmental challenges, promoting sustainable solutions, and enhancing the company’s industry positioning by showcasing its innovative technology’s potential to convert waste into valuable resources.

CHAR Technologies Partners with BMI Group for Renewable Energy Expansion

CHAR Technologies Ltd. has announced a strategic partnership with The BMI Group, which includes a non-brokered private placement of C$2 million to accelerate renewable energy projects. This collaboration aims to expedite the commercial biocarbon production at CHAR Tech Thorold by Q4 2025, with BMI Group investing further in project-level ownership. The partnership also plans to develop a new renewable energy facility at Bioveld North, enhancing CHAR Tech’s industry positioning and providing growth opportunities.