Montauk Renewables (MNTK) AI Stock Analysis

• Market Cap: $233.30M
• Dividend Yield: N/A
• Average Volume (3M): 164.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• Revenue Growth: -17.54%
• EPS Growth: -139.94%
• Country: US
• Employees: 166
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Diversified Utilities
• EPS (TTM): 0.04
• Shares Outstanding: 142,256,620
• 10 Day Avg. Volume: 172,048
• 30 Day Avg. Volume: 164,911
• PEG Ratio: -1.54
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 3.22
• P/FCF Ratio: -30.56
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 2.20
• Enterprise Value/Gross Profit: 9.73
• Enterprise Value/Ebitda: 17.18
• 1Y Price Target: $4.00
• Price Target Upside: 86.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $2.00 ▼(-6.54% Downside)

Montauk Renewables faces significant challenges with declining profitability and cash flow concerns, reflected in a low financial performance score. Technical indicators suggest bearish momentum, and the stock appears overvalued with a high P/E ratio. The earnings call provided mixed signals, with strategic initiatives offset by revenue and income declines.

Montauk Renewables Business Overview & Revenue Model

Company Description

Montauk Renewables (MNTK) is a leading renewable energy company focused on the production and marketing of renewable natural gas (RNG) derived from organic waste. The company operates in the renewable energy sector, primarily converting landfill gas and other organic materials into clean energy solutions. Montauk's core products include RNG, which is sold to utilities and other customers, as well as environmental attributes associated with their energy production, contributing to a more sustainable energy landscape.

How the Company Makes Money

Montauk Renewables generates revenue primarily through the sale of renewable natural gas (RNG) produced from organic waste sources, such as landfills and agricultural byproducts. The company capitalizes on various revenue streams, including the direct sale of RNG to utilities and industrial customers, as well as the monetization of environmental credits associated with its production processes, such as Renewable Identification Numbers (RINs) under the Renewable Fuel Standard (RFS). Additionally, Montauk may engage in long-term contracts with customers, providing stable revenue streams. Strategic partnerships with waste management companies and energy providers further enhance its market reach and profitability, as these collaborations can create synergies in waste processing and energy distribution.

Montauk Renewables Financial Statement Overview

Summary

Montauk Renewables shows strong revenue growth but declining profitability margins and cash flow concerns. The balance sheet is stable with moderate leverage, but the decline in return on equity suggests challenges in generating returns for shareholders.

Income Statement

Montauk Renewables shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) revenue growth rate is strong at 99.6%, indicating a significant increase in sales. However, the gross profit margin has decreased over time, from 50.7% in 2022 to 41.8% in the TTM, suggesting rising costs or pricing pressures. The net profit margin has also declined from 17.1% in 2022 to 1.5% in the TTM, reflecting reduced profitability. EBIT and EBITDA margins have similarly decreased, indicating challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet of Montauk Renewables is relatively stable. The debt-to-equity ratio is moderate at 0.30 in the TTM, showing a conservative use of leverage. Return on equity has decreased from 15.5% in 2022 to 1.0% in the TTM, indicating a decline in profitability relative to shareholder equity. The equity ratio remains healthy, suggesting a solid capital structure with a good proportion of assets financed by equity.

Cash Flow

Cash flow analysis reveals some concerns. The free cash flow is negative in the TTM, although there is a notable improvement in free cash flow growth rate. The operating cash flow to net income ratio is below 1, indicating that operating cash flow is not fully covering net income, which could be a risk if sustained. The negative free cash flow to net income ratio highlights challenges in generating free cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	160.68M	175.74M	174.90M	205.56M	148.13M	100.38M
Gross Profit	36.40M	77.57M	80.28M	104.13M	69.97M	38.64M
EBITDA	20.61M	40.97M	45.12M	65.73M	25.43M	25.06M
Net Income	-9.20M	9.73M	14.95M	35.19M	-4.53M	4.60M
Balance Sheet
Total Assets	383.31M	349.01M	350.24M	332.32M	286.48M	253.36M
Cash, Cash Equivalents and Short-Term Investments	6.77M	45.62M	73.81M	105.18M	53.27M	20.99M
Total Debt	18.10M	62.91M	68.09M	76.22M	79.53M	66.36M
Total Liabilities	122.58M	91.60M	100.00M	105.22M	104.19M	93.73M
Stockholders Equity	260.73M	257.42M	250.24M	227.09M	182.29M	159.62M
Cash Flow
Free Cash Flow	-53.37M	-18.53M	-22.04M	58.79M	32.89M	11.04M
Operating Cash Flow	30.72M	43.80M	41.05M	81.07M	42.88M	28.68M
Investing Cash Flow	-87.28M	-62.19M	-63.09M	-20.79M	-19.47M	-15.99M
Financing Cash Flow	8.33M	-9.84M	-9.33M	-8.28M	8.65M	-1.50M

Montauk Renewables Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNTK, the sentiment is Negative. The current price of 2.14 is above the 20-day moving average (MA) of 2.06, above the 50-day MA of 2.09, and below the 200-day MA of 2.43, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 40.47 is Neutral, neither overbought nor oversold. The STOCH value of 22.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MNTK.

Montauk Renewables Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELPC	77 Outperform	$7.64B	13.68	9.81%	5.30%	-5.28%	14.50%
CIG	76 Outperform	$6.75B	5.43	22.94%	12.12%	-3.27%	-3.44%
ELP	74 Outperform	$7.64B	14.57	9.81%	5.22%	-5.28%	14.50%
BIP	69 Neutral	$16.00B	1,784.54	1.06%	4.81%	8.86%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AES	59 Neutral	$10.13B	8.66	23.02%	4.98%	-1.55%	12.83%
MNTK	53 Neutral	$233.30M	―	-3.43%	―	-17.54%	-139.94%

Montauk Renewables Corporate Events

Montauk Renewables Q2 2025 Earnings Call Highlights

Montauk Renewables, Inc. recently held its second quarter 2025 earnings call, revealing a mixed bag of results. The company reported positive developments such as revenue growth and strategic joint ventures, but also faced challenges with decreased RIN pricing and increased net loss. Overall, the sentiment from the call was balanced, reflecting both achievements and setbacks for the quarter.

Montauk Renewables Reports Q2 2025 Financial Results

Montauk Renewables, Inc. is a renewable energy company focused on converting biogas into renewable natural gas and electricity, with operations across several U.S. states. In the second quarter of 2025, Montauk Renewables reported a 4.1% increase in revenues to $45.1 million compared to the same period in 2024, despite a significant decrease in adjusted EBITDA by 27.7% to $5.0 million. The company maintained steady RNG production levels at 1.4 million MMBtu and saw a 10.5% increase in RINs sold year-over-year.