tiprankstipranks
Trending News
More News >
AFC Energy PLC (GB:AFC)
LSE:AFC
Advertisement

AFC Energy (AFC) AI Stock Analysis

Compare
185 Followers

Top Page

GB:AFC

AFC Energy

(LSE:AFC)

Select Model
Select Model
Select Model
Neutral 44 (OpenAI - 4o)
Rating:44Neutral
Price Target:
9.50p
▲(9.20% Upside)
AFC Energy's overall score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. Technical analysis provides a neutral outlook, while valuation is negatively affected by the lack of earnings and dividends.

AFC Energy (AFC) vs. iShares MSCI United Kingdom ETF (EWC)

AFC Energy Business Overview & Revenue Model

Company DescriptionAFC Energy (AFC) is a UK-based clean energy company focused on developing and commercializing innovative hydrogen fuel cell technologies. Operating primarily within the renewable energy sector, AFC Energy aims to provide sustainable energy solutions for various applications, including transportation, stationary power generation, and industrial processes. The company's core products include alkaline fuel cells that convert hydrogen into electricity, offering a zero-emission alternative to traditional fossil fuels.
How the Company Makes MoneyAFC Energy generates revenue through the sale of its fuel cell systems and associated technologies, as well as through service contracts for maintenance and support. Key revenue streams include direct sales to industries seeking to transition to cleaner energy sources, licensing agreements for their technology, and partnerships with other firms in the energy sector. AFC has also engaged in collaborations and joint ventures with companies and governmental bodies to enhance its market reach and develop new applications for its technology, contributing to its overall earnings. The increasing global demand for sustainable energy solutions and government incentives for hydrogen technology adoption further bolster AFC's revenue potential.

AFC Energy Earnings Call Summary

Earnings Call Date:Jul 16, 2025
(Q4-2024)
|
% Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Neutral
The call highlighted significant revenue growth and strategic advancements, particularly with the launch of the Hy-5 product and a new market-led focus. However, it also reflected challenges such as cash burn, delays in generator deployment, and uncertainty in order commitments.
Q4-2024 Updates
Positive Updates
Significant Increase in Revenue
The company made £4 million in equipment sales in FY '24, up from £400,000 in FY '23, primarily attributed to the joint venture with Speedy Hire.
Launch of Hy-5 Product
The Hy-5, a containerized portable cracking module for hydrogen production, was launched at a disruptive price point of £10 a kilo, significantly lower than competitors.
Strategic Shift to Market-Led Growth
The company has adopted a market-led growth strategy, focusing on reducing manufacturing costs and achieving cost parity with diesel generators for off-grid applications.
Strong Cash Position and Funding
The company had cash reserves of £15.4 million at year-end and secured £3.7 million in U.K. grant funding for FY '25.
Joint Venture Developments
Established a joint venture with Speedy Hire, sold 20 generator units, and built a pipeline with expectations for site deployments.
Negative Updates
Negative Cash Impact from Sales
Despite £4 million in revenue, the cash impact was negative due to VAT payments and timing differences in JV receipts.
Pause in Generator Rollout
Rollout of fuel cell generators paused until manufacturing costs are reduced, impacting immediate revenue generation.
High Cash Burn Rate
Current cash burn rate is approximately £1 million per month, which could pressure the company’s cash reserves.
Market Challenges and Delays
Deployments with Speedy Hire faced certification, safety, and training challenges, delaying market penetration.
Uncertainty Over Order Book
Confusion over the status of a £26 million order book, with only a portion being committed orders.
Company Guidance
In the recent call, AFC Energy provided guidance on several key metrics and strategic initiatives. The company reported £4 million in equipment sales for FY '24, a significant increase from the £400,000 recorded in FY '23. Additionally, they secured £0.5 million in UK grant funding with an expectation of £3.7 million more in FY '25. AFC Energy capitalized £4.4 million of development costs, indicating confidence in the future value of their products. The company ended the fiscal year with a cash balance of £15.4 million and outlined a plan to reduce cash burn to £1 million per month. They aim to achieve cost parity with diesel generators by 2026, pricing hydrogen at £10 per kilo compared to the current £65 per kilo. This strategic shift from technology-led to market-led growth is expected to enhance AFC Energy's competitive positioning and shareholder value.

AFC Energy Financial Statement Overview

Summary
AFC Energy is experiencing revenue growth, but it continues to struggle with profitability and cash flow generation. The company's balance sheet remains strong with low leverage, but the inability to convert revenues into profit and cash poses a significant challenge.
Income Statement
35
Negative
AFC Energy's revenue growth is notable, with a significant increase from the previous year, although it remains relatively low overall. However, the company continues to experience negative gross and net profit margins, indicating ongoing profitability challenges. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.
Balance Sheet
40
Negative
The company maintains a strong equity position, evidenced by a high equity ratio, which suggests financial stability. However, the negative return on equity indicates that the company is not effectively generating profit from its equity base. The debt-to-equity ratio is low, which is a positive sign, indicating low financial leverage.
Cash Flow
30
Negative
AFC Energy faces challenges in its cash flow, with negative free cash flow and operating cash flow, which are both deteriorating year over year. The operating cash flow to net income ratio is also negative, highlighting inefficiencies in converting earnings to cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.61M4.00M227.00K582.00K592.80K0.00
Gross Profit-6.01M-1.87M-67.00K-1.51M-777.97K-397.37K
EBITDA-18.38M-16.66M-17.82M-17.60M-9.51M-4.20M
Net Income-19.25M-17.42M-17.48M-16.45M-9.38M-4.22M
Balance Sheet
Total Assets27.70M36.57M36.24M50.68M63.14M34.82M
Cash, Cash Equivalents and Short-Term Investments4.26M15.37M27.37M40.22M55.99M31.30M
Total Debt415.00K664.00K1.12M996.00K906.13K259.80K
Total Liabilities6.35M6.30M5.15M4.94M3.26M1.80M
Stockholders Equity21.34M30.27M31.09M45.74M59.89M33.02M
Cash Flow
Free Cash Flow-17.05M-26.31M-14.81M-15.35M-10.34M-4.14M
Operating Cash Flow-15.16M-18.91M-13.14M-12.63M-8.44M-3.25M
Investing Cash Flow-7.77M-7.70M-1.24M-2.72M-1.90M-809.65K
Financing Cash Flow14.81M14.62M1.53M197.00K34.76M34.04M

AFC Energy Technical Analysis

Technical Analysis Sentiment
Negative
Last Price8.70
Price Trends
50DMA
9.30
Negative
100DMA
10.76
Negative
200DMA
9.63
Negative
Market Momentum
MACD
-0.22
Positive
RSI
41.65
Neutral
STOCH
25.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AFC, the sentiment is Negative. The current price of 8.7 is below the 20-day moving average (MA) of 9.00, below the 50-day MA of 9.30, and below the 200-day MA of 9.63, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 41.65 is Neutral, neither overbought nor oversold. The STOCH value of 25.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AFC.

AFC Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
£608.14M-17.14-23.26%12.58%12.39%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
54
Neutral
£106.03M-21.17%-3.32%10.13%
45
Neutral
£19.94M-4.68-36.75%20.98%17.29%
45
Neutral
£76.85M-12.04-31.45%265.67%-16.50%
44
Neutral
£98.44M-3.80-86.37%732.03%12.60%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AFC
AFC Energy
8.70
-1.00
-10.31%
GB:EAAS
eEnergy Group
5.15
0.40
8.42%
GB:CWR
Ceres Power Holdings
312.80
128.60
69.82%
GB:DIA
Dialight
265.00
148.00
126.50%
GB:IKA
Ilika plc
42.50
24.50
136.11%
GB:GELN
Gelion PLC
27.00
7.50
38.46%

AFC Energy Corporate Events

Business Operations and StrategyExecutive/Board Changes
AFC Energy’s CTO to Lead New UK Ammonia Alliance
Positive
Oct 21, 2025

AFC Energy announced that its Chief Technology Officer, Dr. Mike Rendall, has been appointed as the inaugural Chair of the UK Ammonia Alliance (UKAA), a new industry group aimed at accelerating the growth of the UK’s ammonia industry. The UKAA, comprising of several leading companies, seeks to promote low-carbon ammonia technologies to support decarbonization, energy security, and economic growth. The Alliance will host its first public event in Parliament, advocating for supportive government policies to harness the benefits of the hydrogen market. This initiative underscores AFC Energy’s commitment to advancing clean ammonia imports and hydrogen accessibility in the UK, potentially influencing policy changes to bolster market growth and energy resilience.

The most recent analyst rating on (GB:AFC) stock is a Hold with a £9.50 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

Other
AFC Energy CEO’s Spouse Acquires Significant Shareholding
Positive
Oct 15, 2025

AFC Energy announced that Sophie Wilson, the spouse of CEO John Wilson, purchased 450,000 ordinary shares in the company. This transaction increases Mr. Wilson’s interest to 7,000,000 shares, representing 0.62% of the company’s issued share capital. This move may indicate confidence in the company’s future prospects and could potentially impact stakeholder perceptions positively.

The most recent analyst rating on (GB:AFC) stock is a Hold with a £9.50 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

Business Operations and StrategyShareholder Meetings
AFC Energy Updates on AGM Vote and Broker Change
Neutral
Oct 10, 2025

AFC Energy recently updated its shareholders on the outcome of its Annual General Meeting, where Resolution 8 concerning the 2024 remuneration report was passed with 77.09% approval. Despite the majority vote, the company acknowledged the significant minority opposition and engaged with major shareholders to understand their concerns, ultimately affirming the resolution’s alignment with shareholder value creation. Additionally, AFC Energy announced a change in its brokerage arrangements, with RBC Europe Limited stepping down as Joint Broker and Zeus and Peel Hunt continuing in their roles.

The most recent analyst rating on (GB:AFC) stock is a Sell with a £9.00 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
AFC Energy Appoints Nick Walker as Chief Strategy Officer to Drive Commercial Growth
Positive
Sep 15, 2025

AFC Energy has appointed Nick Walker as Chief Strategy Officer to lead the commercialization of its ammonia cracker and fuel cell technologies. With over 25 years of experience in hydrogen and clean energy sectors, Walker will enhance commercial partnerships and drive growth, aligning strategic objectives with operational delivery. His role will also involve strengthening stakeholder engagement and investor relations, reflecting AFC Energy’s focus on commercial growth and value creation for shareholders.

The most recent analyst rating on (GB:AFC) stock is a Sell with a £9.00 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

Business Operations and Strategy
AFC Energy CEO Increases Stake, Signaling Confidence in Hydrogen Future
Positive
Aug 14, 2025

AFC Energy announced that its CEO, John Wilson, purchased 250,000 ordinary shares in the company, increasing his total shareholding to 6,550,000 shares, which represents 0.58% of the company’s issued share capital. This transaction underscores the CEO’s confidence in AFC Energy’s strategic direction and potential growth in the hydrogen power generation sector, potentially impacting investor sentiment and the company’s market positioning.

The most recent analyst rating on (GB:AFC) stock is a Buy with a £40.00 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

Business Operations and Strategy
AFC Energy Chairman Increases Stake, Signaling Confidence in Hydrogen Strategy
Positive
Aug 14, 2025

AFC Energy announced that its Non-Executive Chairman, Gary Bullard, has purchased 100,000 ordinary shares in the company, increasing his stake to 5,705,000 shares, which represents 0.50% of the company’s issued share capital. This transaction reflects confidence in AFC Energy’s strategic direction and its positioning in the hydrogen power generation sector, potentially impacting investor sentiment and stakeholder confidence positively.

The most recent analyst rating on (GB:AFC) stock is a Buy with a £40.00 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

Business Operations and Strategy
AFC Energy CEO Increases Stake in Company
Positive
Aug 13, 2025

AFC Energy announced that its CEO, John Wilson, has purchased 228,733 ordinary shares of the company at a price of 8.60 pence per share. This transaction increases his total shareholding to 6,300,000 shares, representing 0.56% of the company’s issued share capital. This move may signal confidence in the company’s strategic direction and potential growth, potentially impacting investor sentiment and market perception.

The most recent analyst rating on (GB:AFC) stock is a Buy with a £40.00 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

Private Placements and FinancingShareholder Meetings
AFC Energy Secures Shareholder Approval for Capital Expansion
Positive
Aug 7, 2025

AFC Energy plc announced that all resolutions at its recent General Meeting were approved, facilitating the allotment of shares for a Conditional Placing and RetailBook Offer. This move is expected to enhance the company’s capital structure and market presence, with the new shares set to be admitted to trading on AIM. The announcement also detailed related party transactions involving key company figures, highlighting their increased shareholdings and demonstrating confidence in the company’s future prospects.

The most recent analyst rating on (GB:AFC) stock is a Buy with a £40.00 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
AFC Energy Grants Share Options to Align Employee Performance with Shareholder Interests
Positive
Aug 1, 2025

AFC Energy has announced the granting of share options to executive directors, senior management, and employees under its Performance Share Plan, totaling 9,794,687 ordinary shares. This initiative aims to align employee performance with shareholder interests, with vesting conditions based on absolute and relative total shareholder return metrics. The move is designed to incentivize employees to achieve key corporate objectives and enhance shareholder value, potentially strengthening the company’s market position and operational focus.

The most recent analyst rating on (GB:AFC) stock is a Buy with a £30.00 price target. To see the full list of analyst forecasts on AFC Energy stock, see the GB:AFC Stock Forecast page.

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: Oct 11, 2025