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AFC Energy PLC (GB:AFC)
LSE:AFC

AFC Energy (AFC) AI Stock Analysis

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GB

AFC Energy

(LSE:AFC)

49Neutral
AFC Energy's stock score is primarily impacted by its ongoing profitability and cash flow challenges, despite revenue growth and a strong balance sheet. Technical indicators suggest cautious optimism with some upward momentum, though longer-term trends remain bearish. Valuation metrics are unfavorable due to the company’s losses. Positive sentiment from recent earnings calls and insider buying offers some promise, but financial inefficiencies must be addressed to boost investor confidence.

AFC Energy (AFC) vs. S&P 500 (SPY)

AFC Energy Business Overview & Revenue Model

Company DescriptionAFC Energy is a leading provider of hydrogen fuel cell technology, primarily engaged in the development and production of alkaline fuel cell systems. These systems are designed to facilitate clean energy generation, particularly for industrial applications and off-grid power solutions. The company operates within the renewable energy sector and focuses on delivering sustainable solutions that help reduce carbon emissions across various industries.
How the Company Makes MoneyAFC Energy generates revenue through the sale and licensing of its proprietary hydrogen fuel cell systems and related technology. The company's primary revenue streams include direct sales of fuel cell systems to industries seeking clean energy solutions and licensing agreements with partners who integrate AFC Energy's technology into their own products or services. Additionally, AFC Energy may engage in strategic partnerships and collaborations that involve joint ventures or co-development projects, contributing to its earnings. The company also earns income from providing ongoing maintenance, support, and consulting services to its clients, ensuring optimal performance and efficiency of its installed systems.

AFC Energy Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
227.00K582.00K592.80K0.000.00
Gross Profit
-67.00K-1.51M-777.97K-397.37K-269.91K
EBIT
-20.02M-19.06M-10.41M-4.63M-3.54M
EBITDA
-17.82M-17.60M-9.51M-4.20M-3.29M
Net Income Common Stockholders
-17.48M-16.45M-9.38M-4.22M-2.85M
Balance SheetCash, Cash Equivalents and Short-Term Investments
27.37M40.83M55.99M31.57M1.33M
Total Assets
36.24M50.68M63.14M34.82M4.20M
Total Debt
1.12M996.00K906.13K259.80K373.23K
Net Debt
-26.24M-39.84M-55.08M-31.31M-954.71K
Total Liabilities
5.15M4.94M3.26M1.80M1.34M
Stockholders Equity
31.09M45.74M59.89M33.02M2.86M
Cash FlowFree Cash Flow
-14.81M-15.35M-10.34M-4.14M-2.66M
Operating Cash Flow
-13.14M-12.63M-8.44M-3.25M-2.44M
Investing Cash Flow
-1.24M-2.72M-1.90M-809.65K-398.82K
Financing Cash Flow
1.53M197.00K34.76M34.04M1.61M

AFC Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.26
Price Trends
50DMA
6.68
Positive
100DMA
8.09
Positive
200DMA
9.78
Negative
Market Momentum
MACD
0.26
Negative
RSI
67.67
Neutral
STOCH
87.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AFC, the sentiment is Positive. The current price of 8.26 is above the 20-day moving average (MA) of 6.43, above the 50-day MA of 6.68, and below the 200-day MA of 9.78, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 67.67 is Neutral, neither overbought nor oversold. The STOCH value of 87.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AFC.

AFC Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBCER
77
Outperform
£504.38M33.0835.74%0.77%11.70%17.85%
64
Neutral
$4.28B11.805.33%250.46%4.10%-9.26%
GBPNN
56
Neutral
£2.36B-4.09%7.08%20.25%-128.71%
GBAFC
49
Neutral
£70.66M-56.78%1663.00%5.93%
GBITM
44
Neutral
£189.84M-14.63%91.71%39.80%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AFC
AFC Energy
8.26
-11.34
-57.86%
GB:CER
Cerillion
1,710.00
138.34
8.80%
GB:PNN
Pennon Group plc
499.40
-22.73
-4.35%
GB:ITM
ITM Power
30.75
-21.70
-41.37%

AFC Energy Earnings Call Summary

Earnings Call Date:Mar 19, 2025
(Q4-2024)
|
% Change Since: 23.28%|
Next Earnings Date:Jul 24, 2025
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 Corporate Events

Other
AFC Energy CEO Increases Stake in Company
Positive
May 2, 2025

AFC Energy’s CEO, John Wilson, has purchased 491,395 ordinary shares in the company for his minor children, increasing his total shareholding to 2,215,113 shares, which represents 0.26% of the company’s issued share capital. This transaction underscores the CEO’s confidence in the company’s future prospects and may positively influence stakeholder perceptions, reinforcing AFC Energy’s commitment to its growth and market presence in the hydrogen energy sector.

Spark’s Take on GB:AFC Stock

According to Spark, TipRanks’ AI Analyst, GB:AFC is a Neutral.

AFC Energy’s stock score is primarily impacted by its ongoing profitability and cash flow challenges, despite revenue growth and a strong balance sheet. Technical indicators suggest cautious optimism with some upward momentum, though longer-term trends remain bearish. Valuation metrics are unfavorable due to the company’s losses. Positive sentiment from recent earnings calls and insider buying offers some promise, but financial inefficiencies must be addressed to boost investor confidence.

To see Spark’s full report on GB:AFC stock, click here.

Business Operations and Strategy
AFC Energy CFO Increases Stake, Signaling Confidence in Growth
Positive
May 1, 2025

AFC Energy announced that its Chief Financial Officer, Karl Bostock, has purchased 193,374 ordinary shares in the company, increasing his total shareholding to 443,374 shares, which represents 0.05% of the company’s issued share capital. This transaction underscores the confidence of the company’s leadership in its strategic direction and potential growth, which could positively impact its market position and stakeholder interests.

Spark’s Take on GB:AFC Stock

According to Spark, TipRanks’ AI Analyst, GB:AFC is a Neutral.

AFC Energy’s stock score reflects significant revenue growth and strategic advancements in hydrogen technology. However, ongoing profitability and cash flow challenges, combined with a bearish technical outlook and negative valuation metrics, weigh heavily on the score. Positive sentiment from recent earnings calls and corporate events provides some optimism, but the company must address its financial inefficiencies to improve investor confidence.

To see Spark’s full report on GB:AFC stock, click here.

Other
AFC Energy CEO Increases Stake, Signaling Confidence in Company’s Future
Positive
Apr 23, 2025

AFC Energy’s CEO, John Wilson, and his spouse, Sophie Wilson, have recently purchased a significant number of shares in the company, indicating confidence in the company’s future. This move increases Mr. Wilson’s stake in the company to 0.20% of its issued share capital, potentially impacting shareholder dynamics and reflecting a positive outlook on AFC Energy’s market position and growth potential.

Spark’s Take on GB:AFC Stock

According to Spark, TipRanks’ AI Analyst, GB:AFC is a Neutral.

AFC Energy’s overall stock score reflects significant revenue growth and strategic advancements in hydrogen technology. However, ongoing profitability and cash flow challenges, combined with a bearish technical outlook and negative valuation metrics, weigh heavily on the score. Positive sentiment from recent earnings calls and corporate events provides some optimism, but the company must address its financial inefficiencies to improve investor confidence.

To see Spark’s full report on GB:AFC stock, click here.

Shareholder MeetingsBusiness Operations and Strategy
AFC Energy Passes All AGM Resolutions Amid Shareholder Concerns
Neutral
Apr 23, 2025

AFC Energy announced that all resolutions at its recent Annual General Meeting were passed by the necessary majority, though a significant minority opposed the remuneration report. The company plans to engage with shareholders to understand their concerns and will provide feedback within six months. This engagement reflects AFC Energy’s commitment to addressing shareholder concerns, potentially impacting its governance and stakeholder relations.

Spark’s Take on GB:AFC Stock

According to Spark, TipRanks’ AI Analyst, GB:AFC is a Neutral.

AFC Energy’s overall stock score reflects significant revenue growth and strategic advancements in hydrogen technology. However, ongoing profitability and cash flow challenges, combined with a bearish technical outlook and negative valuation metrics, weigh heavily on the score. Positive sentiment from recent earnings calls and corporate events provides some optimism, but the company must address its financial inefficiencies to improve investor confidence.

To see Spark’s full report on GB:AFC stock, click here.

Shareholder MeetingsFinancial Disclosures
AFC Energy Announces 2025 AGM and Annual Report Release
Neutral
Mar 28, 2025

AFC Energy has announced the release of its Annual Report for the year ending 31 October 2024 and the notice for its 2025 Annual General Meeting (AGM), scheduled for 23 April 2025. The AGM will take place at the Brooklands Hotel in Weybridge, Surrey, and its results will be shared via the Regulatory News Service and the company’s website. This announcement highlights AFC Energy’s ongoing commitment to transparency and stakeholder engagement, reinforcing its position as a key player in the hydrogen power generation industry.

Business Operations and Strategy
AFC Energy Chairman’s Spouse Acquires Additional Shares
Positive
Mar 27, 2025

AFC Energy, a prominent player in the hydrogen power generation sector, announced that Elaine Sullivan, the spouse of Non-Executive Chairman Gary Bullard, has purchased 94,343 ordinary shares of the company at £0.06 each. This transaction increases Mr. Bullard’s total interest to 4,000,000 shares, representing 0.47% of the company’s issued share capital, reflecting confidence in the company’s strategic direction and potential growth in the hydrogen energy market.

Business Operations and Strategy
AFC Energy Chairman Increases Stake, Signaling Confidence in Hydrogen Future
Positive
Mar 26, 2025

AFC Energy, a prominent player in hydrogen power generation, announced that its Non-Executive Chairman, Gary Bullard, has purchased 350,000 ordinary shares in the company. This transaction increases his total shareholding to 3,905,657 shares, representing 0.46% of the company’s issued share capital. This move is significant as it demonstrates confidence in the company’s strategic direction and potential growth in the hydrogen energy sector, which could positively impact stakeholders and strengthen AFC Energy’s market position.

Business Operations and Strategy
AFC Energy CEO’s Spouse Acquires Significant Shareholding
Positive
Mar 19, 2025

AFC Energy, a prominent player in hydrogen power generation technologies, has announced that Sophie Wilson, spouse of CEO John Wilson, has purchased 500,000 ordinary shares in the company. This transaction increases Mr. Wilson’s interest to 1,025,000 shares, representing 0.12% of the company’s issued share capital. This move reflects confidence in the company’s strategic direction and may influence stakeholder perceptions positively, as AFC Energy continues to expand its footprint in the hydrogen energy sector.

Business Operations and Strategy
AFC Energy Chairman Increases Stake, Signaling Confidence in Hydrogen Strategy
Positive
Mar 19, 2025

AFC Energy, a prominent player in hydrogen power generation technologies, announced that its Non-Executive Chairman, Gary Bullard, has acquired 1,000,000 ordinary shares in the company, increasing his total shareholding to 3,555,657 shares, which represents 0.42% of the company’s issued share capital. This transaction underscores the confidence in AFC Energy’s strategic direction and potential growth, as the company continues to expand its influence in the hydrogen energy market, particularly in sectors seeking decarbonization solutions.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
AFC Energy Announces Strategic Advances in Hydrogen Power Solutions
Positive
Mar 19, 2025

AFC Energy has announced its final results for the year ended 31 October 2024, highlighting significant strides in hydrogen power generation technologies. The company is focusing on commercializing its integrated hydrogen solutions, including the launch of the Hy-5 ammonia cracker, which aims to provide on-site hydrogen at lower costs, addressing economic and logistical barriers in the construction and industrial sectors. AFC Energy’s strategic repositioning towards market-led growth involves accelerating the production of its Hy-5 and larger-scale crackers, reducing costs, and increasing the scalability of its fuel cell systems. This strategy is expected to enhance AFC Energy’s market penetration and value creation, with a focus on achieving cost parity with diesel generators, particularly in the construction sector.

Product-Related AnnouncementsBusiness Operations and Strategy
AFC Energy Unveils Market-Disruptive Hydrogen Production Module
Positive
Mar 19, 2025

AFC Energy has announced the launch of ‘Hy-5’ through its Hyamtec brand, a groundbreaking containerized, portable hydrogen production module capable of generating up to 500kg/day, available from 2026. This product, offered under a ‘fuel as a service’ model, aims to disrupt the market with a competitive price of £10/kg, significantly lower than current rates, and is compatible with AFC Energy’s hydrogen fuel cell generators. The launch addresses key industry challenges such as infrastructure limitations and high production costs, potentially enhancing AFC Energy’s market positioning and providing new opportunities across various sectors including off-grid power, refueling stations, and industrial applications.

Business Operations and Strategy
AFC Energy Executives Signal Confidence with Significant Share Purchases
Positive
Feb 7, 2025

AFC Energy announced that key executives, including CEO John Wilson and CFO Karl Bostock, have purchased significant shares of the company, indicating confidence in its future. These transactions reflect the leadership’s commitment and could positively influence stakeholder perceptions, possibly enhancing the company’s position within the hydrogen power generation sector.

Business Operations and Strategy
AFC Energy Announces Investor Presentation with Q&A Session
Neutral
Feb 5, 2025

AFC Energy has announced an investor presentation to be hosted by its CEO and CFO via Investor Meet Company on February 6, 2025, at 09:00 GMT, which is open to current and potential shareholders. The event will include a Q&A session, providing a platform for stakeholders to engage with the company and ask questions about its operations and future plans, potentially impacting investor relations and market perception.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.