Verde Clean Fuels (VGAS) AI Stock Analysis

• Market Cap: $87.76M
• Dividend Yield: N/A
• Average Volume (3M): 9.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• 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: >-0.01
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.24
• Enterprise Value/Market Cap: 0.34
• 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: 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

Balance Sheet Strength

A strong balance sheet with low leverage provides financial flexibility, allowing the company to invest in growth opportunities without the burden of high debt.

Equity and Asset Growth

Increased equity and assets enhance the company's ability to fund operations and pursue strategic initiatives, supporting long-term growth potential.

Proprietary Technology

The proprietary technology offers a competitive advantage by providing a unique solution in the renewable energy sector, potentially leading to future licensing revenue.

Negative Factors

No Revenue Generation

The absence of revenue generation indicates the company is still in a pre-commercial phase, which may delay profitability and strain financial resources.

Cash Flow Deficiency

Negative cash flow suggests the company is not yet self-sustaining, which could limit its ability to invest in growth and require additional financing.

Ongoing Losses

Persistent losses highlight operational challenges and the need for successful commercialization of technology to achieve financial sustainability.

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

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: 1.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2.30, below the 50-day MA of 2.68, and below the 200-day MA of 3.08, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 39.72 is Neutral, neither overbought nor oversold. The STOCH value of 28.16 is Neutral, 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	$887.61M	-5.66	-111.44%	―	-35.99%	-46.51%
NXXT	46 Neutral	$158.60M	-0.52	―	―	146.01%	63.18%
WAVE	45 Neutral	$35.11M	-10.43	-54.43%	―	-40.99%	-46.52%
VGAS	43 Neutral	$87.76M	-5.95	-21.33%	―	―	23.66%
HTOO	39 Underperform	$7.57M	-0.31	-125.98%	―	―	―