tiprankstipranks
Trending News
More News >
Verde Clean Fuels, Inc. (VGAS)
:VGAS
US Market

Verde Clean Fuels (VGAS) AI Stock Analysis

Compare
15 Followers

Top Page

VG

Verde Clean Fuels

(NASDAQ:VGAS)

Rating:37Underperform
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.

Verde Clean Fuels (VGAS) vs. SPDR S&P 500 ETF (SPY)

Verde Clean Fuels Business Overview & Revenue Model

Company DescriptionVerde 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 MoneyVerde 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
15
Very Negative
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
40
Negative
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
25
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.52M0.000.00247.88K0.000.00
Gross Profit73.99K0.00-544.47K0.000.000.00
EBITDA-7.69M-10.14M-9.55M2.97M-474.58K-3.49M
Net Income-5.27M-10.52M-2.74M17.82M-12.93M-3.52M
Balance Sheet
Total Assets30.06M23.57M31.93M6.36M2.23M3.25M
Cash, Cash Equivalents and Short-Term Investments26.04M19.04M28.78M463.48K87.64K1.05M
Total Debt473.92K232.16K939.15K334.34K8.19K44.96K
Total Liabilities3.10M2.89M3.10M5.25M9.02M422.35K
Stockholders Equity10.98M10.25M11.10M-11.67M-14.39M-1.47M
Cash Flow
Free Cash Flow-15.53M-11.43M-9.17M-3.28M-2.63M-6.53K
Operating Cash Flow-11.96M-8.88M-9.12M-3.28M-2.63M-2.21K
Investing Cash Flow-858.55K-854.93K-58.59K-4.41K-290.10K-4.32K
Financing Cash Flow49.95M0.0037.52M3.66M1.95M13.33K

Verde Clean Fuels Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.64
Price Trends
50DMA
3.41
Positive
100DMA
3.55
Positive
200DMA
3.78
Negative
Market Momentum
MACD
0.03
Negative
RSI
56.69
Neutral
STOCH
48.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VGAS, the sentiment is Positive. The current price of 3.64 is above the 20-day moving average (MA) of 3.40, above the 50-day MA of 3.41, and below the 200-day MA of 3.78, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.69 is Neutral, neither overbought nor oversold. The STOCH value of 48.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VGAS.

Verde Clean Fuels Risk Analysis

Verde Clean Fuels disclosed 75 risk factors in its most recent earnings report. Verde Clean Fuels reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Verde Clean Fuels Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$16.52B17.144.47%3.56%4.76%6.13%
54
Neutral
$41.48M-27.32%-46.17%-18.67%
51
Neutral
$133.31M-82.96%-86.10%-49.68%
ADADN
40
Underperform
$5.42M-771.66%-88.80%58.27%
38
Underperform
$4.85M-1134.77%
37
Underperform
$162.16M-17.03%-29.15%
32
Underperform
$7.23M-335.00%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VGAS
Verde Clean Fuels
3.64
-0.48
-11.65%
HTOO
Fusion Fuel Green
0.20
-0.64
-76.19%
ADN
Advent Technologies Holdings
2.03
-1.34
-39.76%
NRGV
Energy Vault Holdings
0.85
-0.14
-14.14%
WAVE
Eco Wave Power Global
7.10
4.54
177.34%
BNRG
Brenmiller
2.65
-1.97
-42.64%

Verde Clean Fuels Corporate Events

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Verde Clean Fuels Expands Board with Major Investment
Positive
Jan 29, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Apr 22, 2025