Tecogen (TGEN) AI Stock Analysis

• Market Cap: $246.73M
• Dividend Yield: N/A
• Average Volume (3M): 860.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: 9.84%
• EPS Growth: 15.29%
• Country: US
• Employees: 91
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 29,690,798
• 10 Day Avg. Volume: 710,161
• 30 Day Avg. Volume: 860,576
• PEG Ratio: -1.38
• Price to Book (P/B): 3.57
• Price to Sales (P/S): 1.61
• P/FCF Ratio: 11.82
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 6.61
• Enterprise Value/Gross Profit: 15.93
• Enterprise Value/Ebitda: -50.50
• 1Y Price Target: $15.00
• Price Target Upside: 83.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $8.00 ▼(-1.96% Downside)

Tecogen's overall stock score is primarily impacted by its financial challenges, including negative profit margins and cash flow issues. While there is some technical strength and strategic progress, these are overshadowed by valuation concerns and operational inefficiencies.

Tecogen Business Overview & Revenue Model

Company Description

Tecogen Inc. designs, manufactures, markets, and maintains industrial and commercial cogeneration systems for residential, commercial, recreational, and industrial use in the United States and internationally. It operates through three segments: Products, Services, and Energy Production. The company offers InVerde e+ and TecoPower, a cogeneration product that supplies electricity and hot water; TECOCHILL air-conditioning and refrigeration chillers; Tecofrost gas engine-driven refrigeration compressors; and water heaters under the Ilios brand name, as well as emissions control technology under the Ultera brand name. It also provides long-term maintenance contracts, parts sales, and turnkey installation services through a network of eleven field service centers in California, the Midwest, the Northeast, and the Southeast, as well as in Ontario, Canada. In addition, the company installs, owns, operates, and maintains distributed generation of electricity, energy, and other complementary systems. It serves hospitals and nursing homes, colleges, universities, health clubs, spas, hotels, motels, office and retail buildings, food and beverage processors, multi-unit residential buildings, laundries, ice rinks, swimming pools, factories, municipal buildings, military installations, and indoor growing facilities. The company was incorporated in 2000 and is headquartered in Waltham, Massachusetts.

How the Company Makes Money

Tecogen generates revenue through the sale of its natural gas-powered CHP systems, which are installed in various commercial and industrial applications. The company has a diverse revenue model that includes equipment sales, installation services, and ongoing maintenance contracts. Key revenue streams come from the initial sale of its energy systems, as well as follow-on revenues from service agreements that ensure the optimal operation of the systems over time. Additionally, Tecogen may benefit from partnerships with energy management firms and utility companies that promote the adoption of its technology, further enhancing its market presence and revenue potential.

Tecogen Financial Statement Overview

Summary

Tecogen's financial performance is challenged by negative profit margins and cash flow issues. Despite some revenue growth, the company struggles with profitability and liquidity, necessitating strategic improvements.

Income Statement

Tecogen's income statement reveals a challenging financial environment. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 41.47%, which is a decline from previous years, indicating pressure on cost management. The net profit margin is negative at -16.17%, reflecting ongoing losses. Despite a revenue growth rate of 10.83% in the TTM, profitability remains a concern with negative EBIT and EBITDA margins, suggesting operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.29 in the TTM, indicating manageable leverage levels. However, the return on equity is negative at -42.20%, highlighting significant challenges in generating returns for shareholders. The equity ratio stands at 32.09%, suggesting a stable capital structure but with room for improvement in asset utilization.

Cash Flow

Cash flow analysis indicates a negative free cash flow growth rate of -130.19% in the TTM, pointing to cash flow challenges. The operating cash flow to net income ratio is low at 0.01, and the free cash flow to net income ratio is negative, reflecting difficulties in converting income into cash. These metrics suggest potential liquidity issues and the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.28M	22.62M	25.14M	25.00M	24.40M	28.25M
Gross Profit	10.90M	9.87M	10.20M	11.07M	11.59M	10.83M
EBITDA	-3.44M	-4.01M	-3.91M	-1.90M	-752.32K	-5.65M
Net Income	-4.24M	-4.76M	-4.60M	-2.45M	3.70M	-6.15M
Balance Sheet
Total Assets	28.35M	31.09M	27.79M	28.25M	32.36M	30.07M
Cash, Cash Equivalents and Short-Term Investments	1.64M	5.41M	1.35M	1.91M	3.61M	1.49M
Total Debt	3.69M	3.73M	1.48M	1.31M	1.96M	3.60M
Total Liabilities	19.41M	20.97M	13.14M	9.27M	11.23M	12.81M
Stockholders Equity	9.10M	10.23M	14.75M	19.09M	21.21M	17.31M
Cash Flow
Free Cash Flow	-495.89K	3.09M	-870.17K	-1.70M	310.49K	1.22M
Operating Cash Flow	194.63K	4.06M	-823.32K	-1.35M	465.03K	1.41M
Investing Cash Flow	-766.33K	-1.01M	-244.89K	-348.56K	-215.06K	-217.76K
Financing Cash Flow	1.37M	1.01M	505.50K	-76.84K	1.87M	-576.93K

Tecogen Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TGEN, the sentiment is Negative. The current price of 8.16 is below the 20-day moving average (MA) of 9.17, below the 50-day MA of 8.47, and above the 200-day MA of 5.66, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.20 is Neutral, neither overbought nor oversold. The STOCH value of 17.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TGEN.

Tecogen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESP	82 Outperform	$109.87M	12.44	17.68%	2.60%	13.46%	34.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ULBI	63 Neutral	$103.86M	29.57	2.35%	―	5.86%	-68.66%
TGEN	48 Neutral	$246.73M	―	-39.83%	―	9.84%	15.29%
FCEL	43 Neutral	$242.86M	―	-29.51%	―	78.82%	-20.81%
SDST	26 Underperform	$35.10M	-0.84	―	―	―	25.87%

Tecogen Corporate Events

Tecogen Unveils FAQ Document on AI Chillers

On September 17, 2025, Tecogen Inc. announced the release of a document addressing frequently asked questions about its natural gas-powered chillers for AI data centers. The company highlights the advantages of using its chillers, such as increased power availability for AI chips and reduced construction time for data centers. Tecogen’s chillers are designed to enhance power efficiency and profitability for data centers by freeing up electricity typically used by electric chillers. The company is working on overcoming perceived technology risks and aims to secure larger projects by leveraging its partnership with Vertiv and demonstrating the effectiveness of its chillers through proof-of-concept projects.

The most recent analyst rating on (TGEN) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Tecogen stock, see the TGEN Stock Forecast page.

Tecogen Eliminates Debt with Promissory Note Prepayment

Tecogen Inc., a Delaware corporation, approved the prepayment of two promissory notes totaling $1 million, originally issued to John N. Hatsopoulos, a company director. The prepayments, made on September 3 and 4, 2025, amounted to $1,076,955.62, including interest, and eliminated the company’s outstanding debt and future interest charges of approximately $46,159.

The most recent analyst rating on (TGEN) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Tecogen stock, see the TGEN Stock Forecast page.

Tecogen Inc’s Earnings Call: Growth Amid Challenges

Tecogen Inc’s latest earnings call reveals a mixed sentiment, reflecting both significant achievements and notable challenges. The company reported substantial revenue growth and progress in its data center strategy, alongside successful product innovation and a strengthened financial position due to a capital raise. However, these positive developments were offset by decreased profit margins and declines in the service and energy production segments, painting a complex picture of Tecogen’s current financial landscape.

Tecogen Inc. Reports Q2 2025 Financial Results

Tecogen Inc., a prominent player in the clean energy sector, specializes in the design, manufacture, and maintenance of high-efficiency cogeneration products, including engine-driven combined heat and power systems, air conditioning systems, and water heaters. The company focuses on providing environmentally friendly solutions that significantly reduce carbon footprints.

Tecogen Raises $18.2 Million to Boost Operations

Tecogen reported its second quarter 2025 financial results, showing a revenue increase to $7.29 million from $4.73 million in 2024, despite a net loss of $1.47 million. The company highlighted progress in its data center strategy, with a significant pilot project underway, and noted challenges such as reduced gross profit margins due to initial costs of new products and regional service issues. Tecogen also raised $18.2 million in July to enhance manufacturing and marketing efforts, aiming to scale up operations and capitalize on potential large-scale projects.