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Eco Wave Power Global (WAVE)
NASDAQ:WAVE
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Eco Wave Power Global (WAVE) AI Stock Analysis

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Eco Wave Power Global

(NASDAQ:WAVE)

Rating:59Neutral
Price Target:
$9.00
▲(7.14%Upside)
Eco Wave Power Global's overall stock score reflects a challenging financial situation with consistent losses and cash flow issues, but it benefits from strong market momentum and positive strategic developments. The unattractive valuation and financial weaknesses are partially offset by the positive outlook from recent earnings call highlights.
Positive Factors
Project Development
WAVE is currently working on projects in Israel, Portugal, Taiwan, and the U.S. with development partners like Shell, EDF, and Bharat Petroleum.
Technology and Innovation
WAVE's focus on shoreline wave power without meaningful infrastructure requirements differentiates it from other companies in the wave energy sector.
Negative Factors
Financial Performance
WAVE reported 1Q25 results including no revenue and EBITDA loss of ($0.8M) both roughly in-line with estimates.

Eco Wave Power Global (WAVE) vs. SPDR S&P 500 ETF (SPY)

Eco Wave Power Global Business Overview & Revenue Model

Company DescriptionEco Wave Power Global AB (publ), a wave energy company, develops a wave energy conversion (WEC) technology that converts ocean and sea waves into clean electricity. The company also holds various agreements, including power purchase agreements, concession agreements, and other agreements worldwide with pipeline of projects with approximately 404.7 megawatts, as well as letters of intent. It operates in the United States, Taiwan, Sweden, Israel, Portugal, Mexico, and internationally. The company was formerly known as EWPG Holding AB (publ) and changed its name to Eco Wave Power Global AB (publ) in June 2021. Eco Wave Power Global AB (publ) was founded in 2011 and is headquartered in Tel Aviv-Yafo, Israel.
How the Company Makes MoneyEco Wave Power Global makes money primarily through the sale and licensing of its wave energy conversion technology. The company generates revenue by installing its systems in various locations and entering into power purchase agreements (PPAs) with utility companies and other entities interested in utilizing renewable energy. Additionally, Eco Wave Power Global may engage in joint ventures or partnerships with governments and private enterprises to expand its reach and implement its technology in new markets. The company's ability to secure funding and grants for clean energy projects also plays a crucial role in its financial strategy.

Eco Wave Power Global Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 38.16%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
Eco Wave Power's Q1 2025 earnings call highlights a period of strategic project advancements and partnerships, despite some increases in operating expenses and a decrease in cash reserves. The overall sentiment leans positive, with significant progress in project development and successful testing outcomes.
Q1-2025 Updates
Positive Updates
Reduction in Net Loss
Eco Wave Power recorded a net loss of U.S.$505,000 in Q1 2025, an improvement from U.S.$527,000 in the same period last year, reflecting cost discipline efforts.
Advancements in Los Angeles and Portugal Projects
Significant progress in the Los Angeles project with a manufacturing agreement for floaters and engineering design finalization for the 20-megawatt concession in Portugal.
Successful Testing in Israel
The EWP-EDF 1 installation at Jaffa Port logged zero downtime and demonstrated consistent performance, validating design and guiding future R&D.
Strategic Partnerships in India and Taiwan
Progress in partnerships with Bharat Petroleum in India and I-Ke International Ocean Energy in Taiwan, moving towards contract execution.
Formation of Advisory Board
Established an advisory board and welcomed Hilary Ackermann, enhancing governance and strategic direction.
Negative Updates
Increase in Operating Expenses
Operating expenses increased to U.S.$765,000 from U.S.$659,000 in Q1 2024, mainly due to project-related growth.
Decrease in Cash and Short-term Deposits
Cash and short-term deposits decreased to U.S.$8.8 million from U.S.$9.3 million at year-end 2024, attributed to project spending.
Company Guidance
During the Eco Wave Power First Quarter 2025 Earnings Call, the company reported a net loss of $505,000, reflecting a 4.2% improvement compared to the same period last year. Operating expenses increased to $765,000, primarily due to engineering and execution work in Los Angeles and Portugal, although enhanced net financing income helped offset these costs. The company ended the quarter with $8.8 million in cash and short-term deposits, down from $9.3 million at the end of 2024, attributed to development spending across various regions, including India and Taiwan. Key advancements included a floaters manufacturing agreement in Los Angeles with All-Ways Metal expected to conclude by the end of Q2, and finalized engineering designs for a 20-megawatt project in Portugal. In Israel, the EWP-EDF 1 installation demonstrated robust performance, achieving an average power output of 13 kilowatts with peak production at 40 kilowatts, supporting projections of increased output with system scaling. The company also formed an advisory board, welcoming Hilary Ackermann as its first member to bolster strategic direction and governance.

Eco Wave Power Global Financial Statement Overview

Summary
Eco Wave Power Global exhibits weak financial performance characterized by consistent losses, negative cash flows, and declining revenue. Despite a strong equity base and low leverage, these challenges significantly impact financial stability.
Income Statement
30
Negative
Eco Wave Power Global's income statement shows weak profitability with negative net income consistently over the years. Gross profit margin is healthy at 75% in 2024, but the company struggles with EBIT and EBITDA margins, both negative. The revenue growth rate from 2023 to 2024 is negative, indicating a decline in sales.
Balance Sheet
60
Neutral
The balance sheet reflects a relatively stable financial position with a moderate debt-to-equity ratio of 0.16 in 2024, indicating low leverage. The equity ratio is robust at 79.2%, suggesting a strong equity base. However, declining total assets and stockholders' equity over the years may be concerning.
Cash Flow
40
Negative
Cash flow analysis reveals challenges with negative operating and free cash flows over multiple years. The free cash flow growth rate is positive from 2023 to 2024, but the company still reports negative free cash flow. The operating cash flow to net income ratio is negative, highlighting inefficiencies in cash generation from core operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue168.00K306.00K26.00K31.00K0.00
Gross Profit126.00K247.00K4.00K4.00K0.00
EBITDA-1.92M-1.62M-2.61M-2.92M-1.79M
Net Income-2.08M-1.71M-2.14M-2.40M
Balance Sheet
Total Assets10.68M10.01M11.92M16.65M12.68M
Cash, Cash Equivalents and Short-Term Investments9.10M8.38M10.29M14.62M10.72M
Total Debt1.34M1.20M1.24M1.36M1.41M
Total Liabilities2.38M2.21M2.04M1.91M1.90M
Stockholders Equity8.46M7.95M9.87M14.73M10.78M
Cash Flow
Free Cash Flow-1.85M-2.61M-2.46M-2.54M
Operating Cash Flow-1.82M-2.60M-2.46M-2.53M
Investing Cash Flow2.93M1.22M-5.30M-130.00K
Financing Cash Flow2.58M-81.00K-320.00K7.86M

Eco Wave Power Global Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.40
Price Trends
50DMA
6.24
Positive
100DMA
6.45
Positive
200DMA
7.98
Positive
Market Momentum
MACD
0.47
Negative
RSI
69.18
Neutral
STOCH
87.38
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAVE, the sentiment is Positive. The current price of 8.4 is above the 20-day moving average (MA) of 6.67, above the 50-day MA of 6.24, and above the 200-day MA of 7.98, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 69.18 is Neutral, neither overbought nor oversold. The STOCH value of 87.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WAVE.

Eco Wave Power Global Risk Analysis

Eco Wave Power Global disclosed 69 risk factors in its most recent earnings report. Eco Wave Power Global 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 1 New Risks
1.
Potential tariffs could adversely affect the Company's business and financial results. Q4, 2024

Eco Wave Power Global Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
$41.45M-27.32%-46.17%-18.67%
57
Neutral
$159.17M-82.96%-86.10%-49.68%
57
Neutral
AU$889.47M4.29-2.37%5.04%21.41%-109.15%
ADADN
40
Underperform
$5.10M-771.66%-88.80%58.27%
39
Underperform
$5.26M-1134.77%
32
Underperform
$5.34M-335.00%
31
Underperform
$5.51M-1.94%-91.89%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WAVE
Eco Wave Power Global
8.40
5.94
241.46%
CREG
Smart Powerr Corp
2.21
-7.94
-78.23%
HTOO
Fusion Fuel Green
6.71
-24.09
-78.21%
ADN
Advent Technologies Holdings
2.37
-2.23
-48.48%
NRGV
Energy Vault Holdings
1.02
-0.11
-9.73%
BNRG
Brenmiller
2.06
-2.06
-50.00%
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: Jul 22, 2025