Verde Clean Fuels (VGAS) AI Stock Analysis

• Market Cap: $85.54M
• Dividend Yield: N/A
• Average Volume (3M): 9.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• 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: 10,898
• 30 Day Avg. Volume: 9,932
• PEG Ratio: -0.03
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.24
• Enterprise Value/Market Cap: 0.28
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -67.47
• Enterprise Value/Ebitda: -2.49
• 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: 43 Neutral
• Price Target: $2.00 ▲(5.26% Upside)

The score is driven primarily by weak financial performance (no revenue, ongoing losses, and continued cash burn). Technicals also remain bearish with the stock below key moving averages and negative MACD, despite oversold readings. Valuation is constrained by negative earnings and the absence of a dividend.

Positive Factors

Proprietary technology & licensing model

Owning a proprietary Verde process to convert syngas into drop-in gasoline is a durable competitive asset. A licensing and engineering-services model lets Verde scale revenue via third-party capex, earn royalties and fees, and leverage external execution to expand without heavy asset ownership.

Balance-sheet flexibility

Very low debt and a materially stronger equity base give Verde financial flexibility to fund R&D, pilot projects, and commercialization efforts. This reduces near-term refinancing risk, supports multi‑quarter development timelines, and preserves optionality while licensing adoption progresses.

Demonstrated prior profitability

Having reached profitability in 2022 shows the business can generate positive returns under certain conditions. This track record reduces pure execution risk relative to never‑profitable peers and suggests the technology and cost structure may achieve margins once commercial scale or steady licensing revenues materialize.

Negative Factors

No revenue and sustained losses

The absence of TTM revenue and persistent operating losses indicate the company remains pre‑commercial with limited visibility on sustainable revenue streams and margins. This raises structural execution risk and prolongs reliance on external funding until licensing or project income is secured.

Negative operating and free cash flow

Material negative operating and free cash flow reflect ongoing cash burn from development and operations. Over a multi‑month horizon this increases dilution or financing needs, constrains reinvestment, and can delay commercialization unless licensing milestones or external capital are obtained.

No confirmed commercial partnerships

The targeted licensing and royalty model depends on third‑party adopters, but current major partnerships are absent. Without signed licensees or project contracts, revenue conversion and long‑term cash generation remain uncertain, making commercialization timelines and scale outcomes unclear.

Verde Clean Fuels Business Overview & Revenue Model

Company Description

Verde Clean Fuels, Inc. focuses on suppling gasoline and other fuels derived from renewable feedstocks or natural gas. It specializes in the conversion of synthesis gas, or syngas, derived from feedstocks, such as biomass, municipal solid waste, and mixed plastics, as well as natural gas, including synthetic natural gas and other feedstocks, into gasoline through proprietary liquid fuels technology. Verde Clean Fuels, Inc. was founded in 2007 and is based in Hillsborough, New Jersey.

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

Overall fundamentals are weak due to no TTM revenue, sizable operating losses, and materially negative operating/free cash flow (cash burn). The main offset is a relatively strong balance sheet with very low leverage and increased equity/assets, which provides flexibility but is not yet translating into positive returns.

Income Statement

TTM (Trailing-Twelve-Months) results show no revenue and continued operating losses (negative gross profit, EBIT, EBITDA, and net income). Losses remain sizable versus prior years (annual net losses in 2023–2024 and a larger TTM loss), indicating the company is still in a pre-commercial or early-scale phase with limited earnings visibility. A positive in the history is that profitability was achieved in 2022, but the business reverted to consistent losses afterward.

Balance Sheet

The balance sheet is a relative strength: leverage is very low with minimal total debt and an extremely low debt-to-equity ratio in TTM (Trailing-Twelve-Months). Equity and total assets have increased materially versus 2024, improving balance-sheet flexibility. The key weakness is negative returns on equity in TTM (Trailing-Twelve-Months) driven by ongoing losses, meaning the stronger capital base is not currently producing profits.

Cash Flow

Cash generation remains weak: operating cash flow and free cash flow are meaningfully negative in TTM (Trailing-Twelve-Months), indicating continued cash burn. Free cash flow outflow has increased versus 2024 (despite the provided positive TTM free cash flow growth figure), and cash flow does not yet demonstrate self-funding operations. A modest positive is that cash burn is not being driven by heavy debt financing (consistent with low leverage).

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: 1.90
• 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 1.9 is below the 20-day moving average (MA) of 2.17, below the 50-day MA of 2.41, and below the 200-day MA of 3.00, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 33.70 is Neutral, neither overbought nor oversold. The STOCH value of 3.46 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%
NRGV	57 Neutral	$788.61M	-4.84	-111.44%	―	-35.99%	-46.51%
NXXT	47 Neutral	$124.98M	-0.35	―	―	146.01%	63.18%
WAVE	45 Neutral	$29.50M	-8.34	-54.43%	―	-40.99%	-46.52%
VGAS	43 Neutral	$85.54M	-5.32	-21.33%	―	―	23.66%
HTOO	39 Underperform	$6.17M	-0.23	-125.98%	―	―	―