Zeo Energy (ZEO) AI Stock Analysis

• Market Cap: $109.95M
• Dividend Yield: N/A
• Average Volume (3M): 113.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: 207.24%
• EPS Growth: 61.40%
• Country: US
• Employees: 200
• Sector: Financial
• Sector Strength: 75
• Industry: Solar
• EPS (TTM): -0.48
• Shares Outstanding: 22,824,844
• 10 Day Avg. Volume: 60,756
• 30 Day Avg. Volume: 113,302
• PEG Ratio: 0.04
• Price to Book (P/B): -1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -83.25
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 3.77
• Enterprise Value/Ebitda: -6.28
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: $2.50 ▲(4.17%Upside)

Zeo Energy's overall stock score is heavily impacted by its poor financial performance and valuation. The company's insolvency risks and reliance on external financing are major concerns. Technical analysis indicates weak momentum, while corporate events provide a mixed outlook with potential strategic growth offset by regulatory challenges.

Zeo Energy Business Overview & Revenue Model

Company Description

Zeo Energy (ZEO) is a leading innovator in the renewable energy sector, specializing in the development and deployment of advanced solar and wind energy solutions. The company focuses on creating sustainable energy systems for both residential and commercial customers, offering a range of products including solar panels, wind turbines, and integrated energy management systems. ZEO is committed to reducing the carbon footprint and promoting clean energy adoption globally.

How the Company Makes Money

Zeo Energy generates revenue through the sale and installation of its renewable energy products, including solar panels and wind turbines. The company also offers energy management and consulting services to optimize energy use for its clients. Additional revenue streams include long-term maintenance contracts and partnerships with government entities and private firms to supply large-scale energy infrastructure. ZEO invests in research and development to continuously enhance its technology offerings, which enables the company to maintain competitive pricing and capture a larger market share. Strategic partnerships with construction companies and energy providers further bolster its earnings by expanding its reach and customer base.

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: Neutral
• Last Price: 2.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2.4 is below the 20-day moving average (MA) of 2.78, below the 50-day MA of 2.45, and above the 200-day MA of 2.01, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 42.75 is Neutral, neither overbought nor oversold. The STOCH value of 15.17 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
Sector *	68 Neutral	$16.73B	11.74	9.79%	3.76%	11.87%	-7.97%
SOL	55 Neutral	$98.54M	―	-1.63%	―	-19.52%	64.89%
TYGO	54 Neutral	$81.86M	―	-200.49%	―	-39.94%	-38.95%
MAXN	48 Neutral	$55.42M	―	307.38%	―	-54.68%	63.56%
ZEO	41 Neutral	$109.95M	―	-9.81%	―	207.24%	61.40%
SPRU	41 Neutral	$29.95M	―	-49.28%	―	8.97%	-68.08%
SMXT	41 Neutral	$51.67M	―		―	-48.65%	13.64%

Zeo Energy Corporate Events

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.

Zeo Energy Faces Nasdaq Non-Compliance Notice

On April 17, 2025, Zeo Energy Corp. received a notice from Nasdaq indicating non-compliance with listing requirements due to the delayed filing of its 2024 Annual Report. This notice does not immediately affect the company’s stock listing, but Zeo Energy has until June 16, 2025, to submit a compliance plan. If accepted, Nasdaq may grant an extension until October 13, 2025, to meet the requirements. The company is working to file the report promptly to regain compliance.