EQTEC plc (EQT) AI Stock Analysis

• Market Cap: £3.51M
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.83
• Revenue Growth: -64.78%
• EPS Growth: 59.65%
• Country: UK
• Employees: 28
• Sector: Industrials
• Sector Strength: 72
• Industry: Diversified Utilities
• EPS (TTM): N/A
• Shares Outstanding: 640,657,170
• 10 Day Avg. Volume: 2,262,768
• 30 Day Avg. Volume: 1,226,206
• PEG Ratio: <0.01
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.75
• P/FCF Ratio: -0.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £0.50
• Price Target Upside: 4.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: 0.50p ▲(4.17% Upside)

EQTEC plc's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, substantial losses, and negative cash flow trends. The technical analysis indicates a bearish trend, while the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall stock score.

EQTEC plc Business Overview & Revenue Model

Company Description

EQTEC plc licenses and sells its proprietary gasification technology that generates green energy from waste, biomass, and plastics primarily in Ireland, Spain, and the United Kingdom. The company's gasification technology produces energy from various feedstock, such as municipal, agricultural, and industrial waste. It also provides engineering, design, and other related services, as well as maintenance services for operating plants; and is involved in biomass waste-to-energy projects. The company was formerly known as REACT Energy plc and changed its name to EQTEC plc in February 2017. EQTEC plc was founded in 1997 and is based in Cork, Ireland.

How the Company Makes Money

EQTEC generates revenue primarily through the development and operation of gasification projects, which involve converting waste materials into syngas for electricity generation or further processing into other fuels. The company earns money through various streams, including project financing, engineering, procurement, and construction (EPC) contracts. Additionally, EQT benefits from licensing its proprietary technology to third parties, which provides a recurring revenue model as partners implement EQT's gasification solutions. Strategic partnerships with entities in the energy and waste management sectors also contribute to revenue, as these collaborations can lead to joint ventures and shared project implementation, enhancing overall earnings potential.

EQTEC plc Financial Statement Overview

Summary

EQTEC plc is facing significant financial challenges, including declining revenues, substantial losses, high leverage, and negative cash flow trends. Strategic actions are necessary to improve profitability, reduce leverage, and enhance cash flow stability to support long-term sustainability.

Income Statement

EQTEC plc has experienced declining revenue growth over recent years with substantial losses. The gross profit margin has been inconsistent, and the net profit margin is negative due to persistent losses. Both EBIT and EBITDA margins are also negative, indicating operating challenges. The company's financial performance shows a need for strategic improvements to achieve profitability.

Balance Sheet

The balance sheet of EQTEC plc reflects high leverage with a debt-to-equity ratio indicating significant liabilities compared to equity. The return on equity is negative due to persistent losses, showcasing inefficiencies in using shareholder funds. However, the equity ratio remains relatively stable, showing some level of financial stability despite ongoing challenges.

Cash Flow

Cash flow analysis reveals negative free cash flow growth and operating cash flow, highlighting liquidity issues. The operating cash flow to net income ratio is unfavorable due to consistent losses. The company faces significant cash flow challenges, raising concerns about its ability to sustain operations without external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.20M	2.55M	7.97M	9.17M	2.23M
Gross Profit	1.16M	372.63K	967.76K	1.63M	255.74K
EBITDA	-16.72M	-22.29M	-9.48M	-2.70M	-4.60M
Net Income	-19.42M	-23.51M	-10.53M	-4.70M	-5.76M
Balance Sheet
Total Assets	13.70M	29.62M	49.62M	50.56M	29.70M
Cash, Cash Equivalents and Short-Term Investments	306.93K	262.02K	1.69M	6.45M	6.39M
Total Debt	6.63M	5.55M	6.23M	257.71K	1.21M
Total Liabilities	8.69M	8.40M	12.49M	7.18M	4.40M
Stockholders Equity	7.43M	23.52M	39.39M	45.76M	27.52M
Cash Flow
Free Cash Flow	-3.90M	-5.43M	-11.00M	-8.54M	-3.71M
Operating Cash Flow	-3.90M	-5.41M	-10.34M	-7.54M	-3.54M
Investing Cash Flow	2.66M	158.85K	-4.34M	-8.88M	-1.52M
Financing Cash Flow	1.39M	3.68M	9.93M	16.60M	10.73M

EQTEC plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.48
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EQT, the sentiment is Neutral. The current price of 0.48 is above the 20-day moving average (MA) of 0.43, above the 50-day MA of 0.45, and below the 200-day MA of 0.54, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 57.37 is Neutral, neither overbought nor oversold. The STOCH value of 82.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:EQT.

EQTEC plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALU	76 Outperform	£122.35M	12.87	29.95%	3.25%	19.86%	19.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CWR	60 Neutral	£384.61M	―	-23.26%	―	12.58%	12.39%
ITM	47 Neutral	£512.42M	―	-18.47%	―	57.73%	-67.12%
PHE	46 Neutral	£25.04M	―	-87.07%	―	3.87%	-160.00%
AFC	44 Neutral	£104.32M	―	-86.37%	―	732.03%	12.60%
EQT	41 Neutral	£3.51M	―	-126.45%	―	-64.78%	59.65%

EQTEC plc Corporate Events

EQTEC Strengthens Financial Position with £250,000 Share Subscription

EQTEC plc has announced a partial exercise of its option agreement with Compact WTL Tech Limited, resulting in a subscription of £250,000 through the issuance of 29,411,765 ordinary shares at a premium price. This move supports EQTEC’s working capital needs and positions the company strategically within the clean energy sector, enhancing its market presence and stakeholder value.

EQTEC plc Reports 2024 Results Amid Strategic Advances and Financial Challenges

EQTEC plc announced its audited results for 2024, highlighting a challenging year with a net loss of €19.4 million due to asset impairments, but also significant strategic progress. The company has undertaken refinancing efforts, equity raises, and operational restructuring to maintain liquidity and optimize its footprint. Key developments include upgrades to its Italia MDC and Agrigas plants, a strategic partnership with CompactGTL for synthetic fuel production, and ongoing international projects in the USA, France, Croatia, and the UK. Despite financial losses, EQTEC remains focused on scalability and commercialization, aiming to dominate the waste-to-fuels segment through modular gasification and strategic partnerships.

EQTEC plc Successfully Passes All Resolutions at EGM

EQTEC plc announced that all resolutions proposed at their Extraordinary General Meeting were successfully passed. This development is expected to positively impact the company’s operations and strengthen its position in the sustainable energy sector, providing reassurance to stakeholders about the company’s strategic direction.

EQTEC Announces Strategic Investment and Partnership with CWTL

EQTEC plc has announced the publication of a circular and notice of an extraordinary general meeting following a significant investment and strategic partnership with Compact WTL Tech Limited (CWTL). The company has entered into an option agreement with CWTL for a potential further investment of £1.5 million, along with a novation agreement transferring existing loan facilities to CWTL. This move is expected to strengthen EQTEC’s financial position and enhance its market presence, with implications for shareholders regarding share capital and voting rights.