Zeo Energy (ZEO) AI Stock Analysis

• Market Cap: $57.53M
• Dividend Yield: N/A
• Average Volume (3M): 124.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: 27.17%
• EPS Growth: 57.71%
• Country: US
• Employees: 200
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): -0.12
• Shares Outstanding: 33,149,933
• 10 Day Avg. Volume: 104,891
• 30 Day Avg. Volume: 124,456
• PEG Ratio: 1.31
• Price to Book (P/B): -0.42
• Price to Sales (P/S): 0.51
• P/FCF Ratio: -4.11
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 2.12
• Enterprise Value/Ebitda: -11.62
• 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: 45 Neutral
• Price Target: $1.00 ▼(-30.56% Downside)

Zeo Energy's overall stock score is primarily impacted by its challenging financial performance, characterized by declining revenues and negative profit margins. The technical analysis further supports a bearish outlook with weak momentum indicators. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield, making the stock less appealing to investors.

Positive Factors

Diversified revenue streams

Multiple revenue lines — hardware sales, installations, storage and consulting — reduce dependence on any single product or project. Long-term, this diversification stabilizes cash flow timing, supports cross-selling, and preserves backlog visibility from government and private contracts over coming months.

High gross margins

A 55.4% gross margin indicates strong underlying unit economics for products and services. If operational overheads are controlled, this margin provides room to finance R&D, scale installations, and invest in storage capacity, improving path to sustained profitability over a medium horizon.

Low leverage

Limited leverage gives Zeo financial flexibility to fund project capex, pursue strategic investments, and endure revenue volatility without heavy interest burdens. This balance sheet strength reduces default risk and supports project execution and partnership growth over the next several months.

Negative Factors

Negative profitability

Sustained negative net and operating margins show core costs outpace gross profits, indicating structural profitability issues. Without meaningful cost structure changes or revenue recovery, losses will continue to erode equity and limit reinvestment capacity across the business in the medium term.

Weak cash generation

Negative operating and free cash flow reflect cash burn from core activities, forcing reliance on external financing or asset sales. Poor cash conversion constrains project funding, supplier payments, and the ability to capitalize on contracts, creating a durable liquidity risk over 2–6 months.

Declining revenues

A downtrend in revenues weakens economies of scale and increases per-unit fixed cost absorption, pressuring margins further. For a project-driven renewables firm, declining sales suggest lost contracts or competition issues, making operational turnaround and backlog rebuilding difficult in the near-to-medium term.

Zeo Energy Business Overview & Revenue Model

Company Description

Zeo Energy Corp. is a vertically integrated provider of residential solar energy systems, other energy efficient equipment, and related services. The company is headquartered in New Port Richey, FL.

How the Company Makes Money

Zeo Energy generates revenue through multiple streams, including the sale of solar panels and wind turbines, installation services for renewable energy systems, and energy storage solutions. Additionally, the company offers consulting services that help clients optimize their energy use and reduce costs. Key partnerships with government entities and private sector clients enable Zeo Energy to secure contracts for large-scale energy projects, further enhancing its revenue potential. The company also benefits from incentives and subsidies related to renewable energy initiatives, which contribute to its overall earnings.

Zeo Energy Financial Statement Overview

Summary

Zeo Energy faces substantial financial challenges, with declining revenues, negative profit margins, and cash flow difficulties. Despite maintaining low leverage, profitability and cash generation are concerning, necessitating operational improvements.

Income Statement

Zeo Energy's income statement reveals a challenging financial position with declining revenues and negative profit margins. The TTM data shows a gross profit margin of 55.4%, which is relatively strong, but the net profit margin is negative at -14.8%, indicating significant losses. The revenue growth rate is negative, reflecting a decrease in sales. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows a mixed picture with a low debt-to-equity ratio, suggesting limited leverage, which is a positive aspect. However, the return on equity is inconsistent, with a negative ROE in the most recent TTM period. The equity ratio is not explicitly calculated, but the company's equity position appears to be unstable given the fluctuations in stockholders' equity.

Cash Flow

Cash flow analysis indicates significant challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is positive, but this is due to a low base effect. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. The free cash flow to net income ratio is positive, suggesting some ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	69.43M	73.24M	109.69M	88.96M	24.59M
Gross Profit	40.09M	35.22M	50.25M	17.75M	10.49M
EBITDA	-7.31M	-5.69M	6.80M	10.42M	7.47M
Net Income	-12.44M	-2.67M	4.85M	8.67M	7.09M
Balance Sheet
Total Assets	58.50M	61.40M	48.13M	35.20M	32.37M
Cash, Cash Equivalents and Short-Term Investments	3.92M	5.63M	8.02M	2.27M	450.85K
Total Debt	4.17M	5.09M	2.97M	2.11M	743.68K
Total Liabilities	12.42M	18.49M	17.54M	3.93M	1.56M
Stockholders Equity	-1.72M	-88.91M	30.59M	31.28M	30.82M
Cash Flow
Free Cash Flow	-8.79M	-9.09M	10.94M	9.64M	6.17M
Operating Cash Flow	-7.66M	-8.72M	11.98M	10.72M	6.88M
Investing Cash Flow	6.46M	-7.37M	-1.03M	-1.08M	379.13K
Financing Cash Flow	786.30K	13.70M	-5.19M	-7.82M	-6.93M

Zeo Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZEO, the sentiment is Neutral. The current price of 1.44 is above the 20-day moving average (MA) of 1.02, above the 50-day MA of 1.19, and below the 200-day MA of 1.78, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 17.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZEO.

Zeo Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPRU	62 Neutral	$93.02M	-4.09	-18.23%	―	37.59%	72.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SMXT	47 Neutral	$56.48M	-4.74	―	―	76.60%	70.94%
ZEO	45 Neutral	$57.53M	-1.39	―	―	27.17%	57.71%
BEEM	42 Neutral	$31.40M	-0.91	-80.33%	―	-54.56%	-133.60%
MAXN	39 Underperform	$49.85M	-0.01	―	―	-54.68%	63.56%