Verde Clean Fuels (VGAS) AI Stock Analysis

• Market Cap: $116.72M
• Dividend Yield: N/A
• Average Volume (3M): 6.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: N/A
• EPS Growth: 23.66%
• Country: US
• Employees: 10
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): -0.06
• Shares Outstanding: 22,049,622
• 10 Day Avg. Volume: 10,437
• 30 Day Avg. Volume: 6,357
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.24
• Enterprise Value/Market Cap: 0.25
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -83.04
• Enterprise Value/Ebitda: -3.07
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 37 Underperform
• Price Target: ―

Verde Clean Fuels faces significant financial challenges, with no revenue and high liabilities, which heavily impact its overall score. While technical indicators show a bearish trend, the recent equity investment provides some positive outlook. However, the negative P/E ratio and lack of dividends further complicate its valuation. Overall, the stock remains a risky proposition given its current financial instability.

Positive Factors

Equity Investment

The $50 million equity investment provides crucial capital for strategic initiatives, potentially enhancing operational efficiency and supporting sustainability goals.

Technological Innovation

The company's focus on converting waste into renewable fuels positions it well in the growing sustainable energy market, offering a competitive edge through technological innovation.

Strategic Partnerships

Partnerships with energy and tech firms expand market access and profitability, reinforcing Verde's business model and long-term growth potential in sustainable energy.

Negative Factors

Revenue Generation Issues

The lack of revenue generation over several years indicates significant challenges in monetizing its technology, impacting long-term financial stability and growth prospects.

High Liabilities

High liabilities relative to equity suggest financial vulnerability, limiting flexibility and increasing risk, which could hinder future investment and growth opportunities.

Negative Cash Flow

Persistent negative cash flow underscores poor cash management, straining operations and limiting the ability to fund growth initiatives, posing a risk to long-term viability.

Verde Clean Fuels Business Overview & Revenue Model

Company Description

Verde Clean Fuels, Inc. (VGAS) is a company focused on providing sustainable and clean energy solutions. Operating in the alternative energy sector, Verde Clean Fuels specializes in the development and commercialization of technologies that convert waste feedstocks into renewable fuels. The company's core products include cleaner fuel alternatives designed to reduce carbon emissions and promote environmental sustainability.

How the Company Makes Money

Verde Clean Fuels generates revenue primarily through the sale of its renewable fuel products. The company's business model involves converting waste materials into clean fuels, which are then sold to various industries seeking sustainable energy solutions. Key revenue streams include contracts with industrial clients, partnerships with governmental and non-governmental organizations focused on reducing carbon footprints, and potential licensing agreements for its proprietary technology. Strategic partnerships with other energy companies and technology providers also play a significant role in enhancing its market reach and profitability.

Verde Clean Fuels Financial Statement Overview

Summary

Verde Clean Fuels is struggling financially, with no revenue generation and ongoing net losses. The balance sheet shows improvement in equity, yet it remains weak due to high liabilities. Cash flow challenges persist, marked by negative free cash flow and operating cash deficits. The company must address its revenue and cash generation issues to improve its financial health.

Income Statement

Verde Clean Fuels has consistently reported zero revenue over the past five years. The company shows significant losses with no gross profit or EBIT, indicating negative profitability trends. Significant net losses and fluctuating EBIT and EBITDA figures suggest instability and a lack of revenue generation in the renewable utilities sector.

Balance Sheet

The company's balance sheet reveals a significant improvement in stockholders' equity, moving from a negative position to positive in the latest year. However, the debt-to-equity ratio is not favorable given the minimal revenue generation, and the equity ratio indicates a capital structure heavily reliant on liabilities. Despite a growing asset base, the company's financial health is compromised by its liabilities and lack of revenue.

Cash Flow

The cash flow statement reflects negative operating and free cash flow over the years, highlighting a challenging cash management situation. Despite some positive financing activities, the company's inability to generate positive free cash flow is concerning. The operating cash flow to net income ratio is unfavorable, indicating poor cash generation relative to the net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-357.93K	-322.09K	-544.47K	-247.88K	0.00	0.00
EBITDA	-9.69M	-10.14M	-9.55M	2.97M	-225.43K	-3.49M
Net Income	-4.54M	-3.33M	-2.74M	2.72M	-12.93M	-3.52M
Balance Sheet
Total Assets	67.18M	23.57M	31.93M	6.36M	2.53M	3.25M
Cash, Cash Equivalents and Short-Term Investments	59.44M	19.04M	28.78M	463.48K	87.64K	1.05M
Total Debt	281.00K	232.16K	939.15K	334.34K	312.28K	44.96K
Total Liabilities	3.14M	2.89M	3.10M	5.25M	9.32M	422.35K
Stockholders Equity	32.51M	10.25M	11.10M	1.10M	-6.79M	2.83M
Cash Flow
Free Cash Flow	-15.35M	-11.43M	-9.17M	-3.28M	-2.63M	-2.21K
Operating Cash Flow	-9.79M	-8.88M	-9.11M	-3.28M	-2.63M	-2.21K
Investing Cash Flow	-1.89M	-854.93K	-58.59K	-4.41K	-290.10K	0.00
Financing Cash Flow	49.45M	0.00	37.50M	3.66M	1.95M	13.33K

Verde Clean Fuels Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VGAS, the sentiment is Negative. The current price of 2.56 is below the 20-day moving average (MA) of 3.05, below the 50-day MA of 3.10, and below the 200-day MA of 3.29, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 32.05 is Neutral, neither overbought nor oversold. The STOCH value of 8.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VGAS.

Verde Clean Fuels Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
WAVE	50 Neutral	$40.37M	-14.35	-54.43%	―	-40.99%	-46.52%
NRGV	49 Neutral	$562.10M	―	-111.44%	―	-35.99%	-46.51%
NXXT	45 Neutral	$159.94M	―	―	―	146.01%	63.18%
HTOO	38 Underperform	$6.05M	-0.23	-125.98%	―	―	―
ADN	37 Underperform	$2.96M	-0.09	―	―	-98.36%	56.27%
VGAS	37 Underperform	$116.72M	―	-21.33%	―	―	23.66%

Verde Clean Fuels Corporate Events

Verde Clean Fuels Expands Board with Major Investment

On January 29, 2025, Verde Clean Fuels announced the completion of a $50 million equity investment by Cottonmouth Ventures, a subsidiary of Diamondback Energy, making Cottonmouth the second largest shareholder in Verde with a total investment of $70 million. This investment will support Verde’s plans to develop natural gas-to-gasoline production plants using its STG+® technology. Alongside the investment, Verde expanded its Board to include Johnny Dossey as a director, representing Cottonmouth. The move is expected to enhance operational efficiency, support sustainability goals, and advance the construction of commercial production plants, potentially benefiting stakeholders by providing a high-value outlet for natural gas and contributing to lower carbon fuel production.