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Zeo Energy (ZEO)
NASDAQ:ZEO
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Zeo Energy (ZEO) AI Stock Analysis

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ZEO

Zeo Energy

(NASDAQ:ZEO)

Rating:42Neutral
Price Target:
$2.00
▲(21.21% Upside)
Zeo Energy's overall stock score is primarily impacted by its weak financial performance and valuation. The company's negative equity position and ongoing losses are significant concerns. Technical analysis indicates bearish momentum, while corporate events present mixed implications with a strategic acquisition offset by compliance issues.

Zeo Energy (ZEO) vs. SPDR S&P 500 ETF (SPY)

Zeo Energy Business Overview & Revenue Model

Company DescriptionZeo 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 MoneyZeo 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 is facing significant financial challenges. Despite some revenue growth, the company struggles with profitability and cash flow management. The negative equity position and ongoing losses raise concerns about financial stability and sustainability.
Income Statement
45
Neutral
Zeo Energy's income statement shows a mixed performance. The company has experienced revenue growth in the TTM period, but it is accompanied by negative profit margins, indicating operational challenges. The gross profit margin remains relatively stable, but the net profit margin is negative, reflecting ongoing losses. The EBIT and EBITDA margins are also negative, highlighting inefficiencies in managing operational costs.
Balance Sheet
30
Negative
The balance sheet reveals significant financial instability. The company has negative stockholders' equity, indicating more liabilities than assets, which is a major concern. The debt-to-equity ratio is negative due to negative equity, and return on equity is positive but misleading due to the negative equity base. The equity ratio is also negative, further emphasizing the financial distress.
Cash Flow
40
Negative
Cash flow analysis shows some improvement in free cash flow growth, but operating cash flow remains negative, indicating cash management issues. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net losses, but the overall negative operating cash flow coverage ratio highlights liquidity challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue65.19M73.24M110.07M88.96M24.59M
Gross Profit36.11M35.22M21.88M17.75M10.49M
EBITDA-8.07M-5.69M-3.00M10.35M7.44M
Net Income-9.64M-2.67M-3.00M14.33M9.46M
Balance Sheet
Total Assets46.23M60.98M48.13M286.15M283.42M
Cash, Cash Equivalents and Short-Term Investments68.69K5.63M8.02M614.77K1.32M
Total Debt4.66M5.09M2.97M171.35K171.35K
Total Liabilities33.24M34.19M17.54M12.64M24.24M
Stockholders Equity-59.45M-88.91M30.59M273.51M259.18M
Cash Flow
Free Cash Flow-1.76M-9.09M10.18M2.20M-1.65M
Operating Cash Flow-914.90K-8.72M11.96M3.28M-938.29K
Investing Cash Flow-7.85M-7.37M-1.78M-3.98M-281.52M
Financing Cash Flow3.49M13.70M-4.43M-7.82M283.78M

Zeo Energy Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.65
Price Trends
50DMA
2.45
Negative
100DMA
2.24
Negative
200DMA
2.14
Negative
Market Momentum
MACD
-0.21
Positive
RSI
29.74
Positive
STOCH
11.35
Positive
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 1.65 is below the 20-day moving average (MA) of 2.13, below the 50-day MA of 2.45, and below the 200-day MA of 2.14, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 29.74 is Positive, neither overbought nor oversold. The STOCH value of 11.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZEO.

Zeo Energy Risk Analysis

Zeo Energy disclosed 91 risk factors in its most recent earnings report. Zeo Energy 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

Zeo Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$17.90B11.8610.29%3.72%9.74%1.66%
50
Neutral
$93.41M-1.27%-33.25%81.55%
48
Neutral
$25.86M-47.48%22.78%-27.59%
47
Neutral
$92.04M-221.18%52.31%-2421.56%
46
Neutral
$61.67M307.38%-54.68%63.56%
42
Neutral
$94.89M-9.81%86.59%55.95%
41
Neutral
$64.08M
-27.65%16.39%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZEO
Zeo Energy
1.65
-0.07
-4.07%
SOL
Emeren Group
1.82
-0.04
-2.15%
SPRU
Spruce Power Holding
1.45
-1.43
-49.65%
MAXN
Maxeon Solar Technologies
3.65
-5.65
-60.75%
TYGO
Tigo Energy
1.40
0.25
21.74%
SMXT
SolarMax Technology, Inc.
1.18
0.08
7.27%

Zeo Energy Corporate Events

Private Placements and FinancingRegulatory Filings and Compliance
Zeo Energy Amends Engagement with Piper Sandler
Neutral
Aug 19, 2025

Zeo Energy Corp., a Delaware corporation, entered into a third amendment to its engagement letter with Piper Sandler & Co. on August 11, 2025. This amendment involves a payment of $1.6875 million and the issuance of 677,711 shares of Zeo Class A common stock to Piper as consideration for buy-side advisory services. Piper has agreed to a lockup on a portion of these shares until September 22, 2025. The company also plans to file a registration statement with the SEC to register these shares for resale by September 7, 2025.

Delistings and Listing ChangesM&A Transactions
Zeo Energy Completes Acquisition of Heliogen
Positive
Aug 11, 2025

On August 11, 2025, Zeo Energy completed its acquisition of Heliogen, Inc., a clean energy technology provider. This acquisition enables Zeo to create a new division focused on long-duration energy generation and storage for commercial and industrial-scale facilities, enhancing its market reach and offering a comprehensive energy platform. The transaction, which involved an exchange of Zeo’s Class A common stock, also brought approximately $13.6 million in net cash to Zeo, while Heliogen’s shares ceased trading as it became a subsidiary of Zeo.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Zeo Energy Stockholders Approve Key Governance Decisions
Neutral
Aug 8, 2025

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.

Executive/Board Changes
Zeo Energy Board Member Gianluca Guy Resigns
Neutral
Jul 9, 2025

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.

Shareholder Meetings
Zeo Energy Announces Virtual Annual Meeting Date
Neutral
Jun 12, 2025

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.

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: Aug 20, 2025