Zeo Energy (ZEO) AI Stock Analysis

• Market Cap: $120.30M
• Dividend Yield: N/A
• Average Volume (3M): 45.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 207.24%
• EPS Growth: 61.40%
• Country: US
• Employees: 200
• Sector: Financial
• Sector Strength: 67
• Industry: Solar
• EPS (TTM): -0.48
• Shares Outstanding: 22,824,844
• 10 Day Avg. Volume: 26,185
• 30 Day Avg. Volume: 45,362
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 1.24
• Enterprise Value/Gross Profit: 2.58
• Enterprise Value/Ebitda: -7.87
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: $2.50 ▲(5.49% Upside)

The overall stock score of 43 reflects significant financial instability and negative valuation metrics. While technical indicators are neutral, and corporate events suggest potential for strategic growth, the immediate financial challenges and delisting risk weigh heavily on the score.

Zeo Energy Business Overview & Revenue Model

Company Description

Zeo Energy (ZEO) is a leading renewable energy company specializing in the generation and distribution of clean energy solutions. Operating primarily in the solar and wind energy sectors, Zeo Energy is committed to providing sustainable and efficient energy alternatives to reduce carbon footprints. The company offers a wide range of products and services including solar panel installations, wind turbine operations, and comprehensive energy management solutions for residential, commercial, and industrial clients.

How the Company Makes Money

Zeo Energy generates revenue through several key streams. The primary source of income is the sale and installation of solar panels and wind turbines, where the company offers both direct sales and leasing options. Additionally, Zeo Energy provides ongoing maintenance and energy management services, ensuring optimal performance of installed systems, which contributes to a steady stream of service-related revenue. The company also engages in power purchase agreements (PPAs) with large-scale commercial clients and utility companies, selling the energy generated from its solar and wind farms. Strategic partnerships with governmental and non-governmental organizations for renewable energy projects further bolster Zeo Energy's earnings. Incentives and subsidies for renewable energy development often enhance profitability, allowing the company to reinvest in technology and expansion.

Zeo Energy Financial Statement Overview

Summary

Zeo Energy's financial performance is severely challenged, with declining revenues, negative profitability, and significant balance sheet risks including negative equity and increasing debt. Cash flow issues further highlight operational inefficiencies and reliance on external financing.

Income Statement

The income statement reveals significant challenges. Revenue has been declining, with a negative growth rate of -15.62% over the TTM period. The company is experiencing negative EBIT and net income, indicating operational inefficiencies and lack of profitability. Margins are negative, with a gross profit margin of 48.02% but net profit margin of -11.41%, highlighting cost management issues.

Balance Sheet

Zeo Energy faces substantial balance sheet risks. The company has a negative stockholders' equity of -230.78 million, indicating insolvency risks. The debt-to-equity ratio cannot be calculated due to negative equity, but there is a visible increase in total debt. These factors suggest financial instability and potential liquidity challenges.

Cash Flow

Cash flow analysis shows negative free cash flow of -1.33 million in the TTM, reflecting operational cash outflows. The operating cash flow to net income ratio is negative, indicating cash flow challenges in sustaining net income. There is a reliance on financing cash flow for liquidity, which could pose risks if external financing becomes constrained.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	73.24M	110.07M	88.96M	24.59M
Gross Profit	35.22M	21.88M	17.75M	10.49M
EBITDA	-5.69M	-3.00M	10.35M	7.44M
Net Income	-2.67M	-3.00M	14.33M	9.46M
Balance Sheet
Total Assets	60.98M	48.13M	286.15M	283.42M
Cash, Cash Equivalents and Short-Term Investments	5.63M	8.02M	614.77K	1.32M
Total Debt	5.09M	2.97M	171.35K	171.35K
Total Liabilities	34.19M	17.54M	12.64M	24.24M
Stockholders Equity	-88.91M	30.59M	273.51M	259.18M
Cash Flow
Free Cash Flow	-9.09M	10.18M	2.20M	-1.65M
Operating Cash Flow	-8.72M	11.96M	3.28M	-938.29K
Investing Cash Flow	-7.37M	-1.78M	-3.98M	-281.52M
Financing Cash Flow	13.70M	-4.43M	-7.82M	283.78M

Zeo Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.37
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZEO, the sentiment is Negative. The current price of 2.37 is below the 20-day moving average (MA) of 2.47, below the 50-day MA of 2.74, and above the 200-day MA of 2.08, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 42.60 is Neutral, neither overbought nor oversold. The STOCH value of 25.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZEO.

Zeo Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	kr125.18B	19.94	7.06%	4.05%	7.79%	-20.13%
TYGO	52 Neutral	$84.15M	―	-221.18%	―	52.31%	-2421.56%
SOL	50 Neutral	$95.46M	―	-1.63%	―	-19.52%	64.89%
MAXN	49 Neutral	$69.11M	―	307.38%	―	-54.68%	63.56%
SMXT	45 Neutral	$78.70M	―		―	-48.65%	13.64%
ZEO	43 Neutral	$120.30M	―	-9.81%	―	207.24%	61.40%
SPRU	41 Neutral	$21.57M	―	-49.28%	―	8.97%	-68.08%

Zeo Energy Corporate Events

Zeo Energy Stockholders Approve Key Governance Decisions

On August 5, 2025, Zeo Energy Corp. held its annual meeting of stockholders, where several key decisions were made. The stockholders elected five directors to serve until the 2026 annual meeting, approved the issuance of shares in accordance with Nasdaq Listing Rule 5635, ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved the adjournment of the meeting if necessary. These actions reflect the company’s strategic decisions to strengthen its governance and financial oversight.

Zeo Energy Board Member Gianluca Guy Resigns

On July 4, 2025, Gianluca “Luke” Guy resigned from the Board of Directors of Zeo Energy Corp., citing personal reasons. His departure is not due to any disagreements with the company’s management or board.

Zeo Energy Announces Virtual Annual Meeting Date

Zeo Energy Corp. announced it will host its first virtual Annual Meeting of Stockholders on August 5, 2025, with a record date set for June 6, 2025. Stockholders are required to submit proposals and nominations by June 22, 2025, to be considered for inclusion in the meeting’s proxy materials, ensuring compliance with applicable laws and regulations.

Zeo Energy Receives Nasdaq Deficiency Notice

On May 22, 2025, Zeo Energy Corp. received a deficiency notice from Nasdaq for failing to timely file its Quarterly Report on Form 10-Q for the period ending March 31, 2025, which could lead to delisting. The company has until June 16, 2025, to submit a compliance plan, with a possible extension to October 13, 2025, if accepted. Despite the notice, the listing and trading of Zeo Energy’s shares remain unaffected, and the company is working to complete the filing to maintain compliance with SEC reporting obligations.

Zeo Energy Announces Merger Agreement with Heliogen

On May 28, 2025, Zeo Energy Corp. entered into a merger agreement with Heliogen, Inc., aiming to acquire all of Heliogen’s outstanding equity securities in an all-stock transaction. This merger, expected to close in the third quarter of 2025, seeks to combine Zeo’s solar energy platform with Heliogen’s advanced clean storage solutions, creating a comprehensive clean energy platform for residential, commercial, and utility markets. The merger is anticipated to expand market reach, streamline operations, and strengthen financial capabilities, positioning Zeo to capitalize on the growing demand for low-carbon energy infrastructure.