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HOMEBIOGAS LTD (IL:HMGS)
TASE:HMGS
Israel Market
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Homebiogas (HMGS) AI Stock Analysis

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IL:HMGS

Homebiogas

(TASE:HMGS)

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Neutral 45 (OpenAI - Gpt-5.6Sol)
Rating:45Neutral
Price Target:
83.00
▲(7.79% Upside)
Action:Reiterated
Date:08/06/26
The score is primarily held down by weak financial performance—large ongoing losses, continued cash burn, and substantial equity erosion—despite improving revenue and gross margin. Technicals are mixed with signs of weakness/oversold conditions but no strong bullish trend confirmation. Valuation is also constrained by negative earnings and no dividend support.
Positive Factors
Revenue and gross-margin improvement
Improving revenue and gross margin indicate that the business is gaining scale and retaining more value from each sale. Although profitability remains distant, this combination can support stronger operating leverage over the next several quarters if growth and cost discipline continue.
Negative Factors
Persistent unprofitability
The company remains far from breakeven despite higher revenue and gross margin, showing that operating costs still substantially exceed its current scale. Persistent losses weaken internal capital formation and make future growth dependent on achieving much stronger operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and gross-margin improvement
Improving revenue and gross margin indicate that the business is gaining scale and retaining more value from each sale. Although profitability remains distant, this combination can support stronger operating leverage over the next several quarters if growth and cost discipline continue.
Read all positive factors

Homebiogas (HMGS) vs. iShares MSCI Israel ETF (EIS)

Homebiogas Business Overview & Revenue Model

Company Description
HomeBiogas LTD develops, produces, and markets innovative biogas systems that convert organic waste into clean energy. These solutions serve a broad international clientele, including private homes, agricultural businesses, commercial entities, an...
How the Company Makes Money
HomeBiogas primarily makes money by selling physical anaerobic digestion systems (and related equipment) that customers install and use to convert organic waste into usable biogas. Revenue is generated from (1) product sales of its biogas digester...

Homebiogas Financial Statement Overview

Summary
Despite improving revenue growth and a meaningful gross margin lift in 2025, profitability and cash generation remain very weak. The company is still posting large net losses and persistent negative operating/free cash flow, while equity has eroded significantly over time—raising sustainability and funding-risk concerns even with modest leverage.
Income Statement
18
Very Negative
Balance Sheet
52
Neutral
Cash Flow
22
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.10M3.13M2.63M4.83M4.70M2.48M
Gross Profit1.25M899.53K384.00K1.55M1.34M234.00K
EBITDA-4.44M-3.76M-8.23M-9.91M-14.00M-7.64M
Net Income-5.27M-4.14M-9.42M-11.34M-15.16M-8.31M
Balance Sheet
Total Assets5.99M5.23M8.21M19.43M19.62M33.58M
Cash, Cash Equivalents and Short-Term Investments2.34M1.95M2.84M9.14M11.20M26.05M
Total Debt340.70K391.08K470.00K1.95M1.64M1.99M
Total Liabilities2.96M2.16M3.23M5.39M5.23M5.49M
Stockholders Equity2.81M2.79M4.93M14.04M14.39M28.09M
Cash Flow
Free Cash Flow-3.06M-2.44M-5.54M-11.13M-12.77M-10.72M
Operating Cash Flow-3.00M-2.43M-4.51M-10.58M-11.57M-8.33M
Investing Cash Flow-10.57K169.95K-847.00K-571.00K-1.13M-2.49M
Financing Cash Flow2.79M1.02M-639.00K9.28M-419.00K28.77M

Homebiogas Technical Analysis

Technical Analysis Sentiment
Positive
Last Price77.00
Price Trends
50DMA
84.38
Negative
100DMA
71.87
Positive
200DMA
88.70
Negative
Market Momentum
MACD
0.71
Negative
RSI
54.79
Neutral
STOCH
70.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:HMGS, the sentiment is Positive. The current price of 77 is below the 20-day moving average (MA) of 77.88, below the 50-day MA of 84.38, and below the 200-day MA of 88.70, indicating a neutral trend. The MACD of 0.71 indicates Negative momentum. The RSI at 54.79 is Neutral, neither overbought nor oversold. The STOCH value of 70.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:HMGS.

Homebiogas Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
₪4.93B-24.122.40%-570.07%
47
Neutral
₪4.20B-14.7364.06%-1059.35%
46
Neutral
₪8.13B-64.34
45
Neutral
₪37.43M-1.63-10.23%35.34%
44
Neutral
₪1.91B-34.94
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:HMGS
Homebiogas
83.20
-57.60
-40.91%
IL:MSKE
Meshek Energy
1,111.00
652.60
142.36%
IL:PRIM
Prime Energy
4,000.00
2,520.00
170.27%
IL:ECNR
Econergy
6,292.00
2,372.00
60.51%
IL:SBEN
SHIKUN & BINUI ENERGY LTD
422.30
183.40
76.77%
IL:ZPRS
Zephyrus Wing Energies Ltd.
2,677.00
935.00
53.67%
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 06, 2026