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Tecogen
(TGEN)
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Rating:46Neutral
Price Target:
$2.00
▼(-37.11% Downside)
Action:Reiterated
Date:10/28/26
The score is held down primarily by weak financial performance—deep losses and material negative free cash flow—alongside bearish technicals with the stock trading below all major moving averages and a negative MACD. Partially offsetting these risks are earnings-call signals of potential improvement (backlog, margin gains, and growing data-center interest), while valuation remains constrained by negative earnings and no stated dividend yield.
Positive Factors
Data-center product validation
The Cloudsmart deployment provides real-world evidence that Tecogen’s InVerde system can operate reliably in a demanding data-center setting while reducing customer energy costs. This strengthens the company’s commercial credibility and may help convert its broader hyperscale pipeline into durable orders.
Negative Factors
Persistent losses and cash burn
Deep losses combined with materially negative operating and free cash flow weaken financial self-sufficiency and increase reliance on financing or working-capital improvements. Continued cash burn could restrict investment in production capacity, product development, and customer deployments until operations stabilize.
Read all positive and negative factors
Positive Factors
Negative Factors
Data-center product validation
The Cloudsmart deployment provides real-world evidence that Tecogen’s InVerde system can operate reliably in a demanding data-center setting while reducing customer energy costs. This strengthens the company’s commercial credibility and may help convert its broader hyperscale pipeline into durable orders.
Read all positive factors
Tecogen (TGEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.39M
Dividend YieldN/A
Average Volume (3M)177.99K
Price to Earnings (P/E)―
Beta (1Y)2.48
Revenue Growth-6.45%
EPS Growth-106.73%
CountryUS
Employees120
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.41
Shares Outstanding30,187,822
10 Day Avg. Volume249,600
30 Day Avg. Volume177,991
Financial Highlights & Ratios
PEG Ratio-0.28
Price to Book (P/B)6.22
Price to Sales (P/S)4.97
P/FCF Ratio-13.05
Enterprise Value/Market Cap2.40
Enterprise Value/Revenue4.92
Enterprise Value/Gross Profit13.25
Enterprise Value/Ebitda-13.70
Forecast
1Y Price Target
$8.75Price Target Upside175.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.25
Revenue Forecast (FY)$25.84M
Tecogen Business Overview & Revenue Model
Company Description
Tecogen Inc. specializes in the design, manufacturing, sales, and ongoing support of industrial and commercial combined heat and power (CHP) systems. These energy solutions cater to a wide range of applications—residential, commercial, recreationa...
How the Company Makes Money
Tecogen primarily makes money through (1) equipment-related revenue and (2) recurring services revenue tied to its installed base. Equipment-related revenue comes from the sale of CHP and other on-site energy equipment, along with associated proje...
Tecogen Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: near-term financials were weak with a 21% revenue decline, a 64% drop in products revenue, widening net losses and higher operating costs, and one-time charges that depressed margins. Offsetting these negatives are encouraging operational developments — notably strong interest from hyperscale data centers (12 demos representing meaningful market share), an >$8M backlog with $2M–$3M expected near-term, improved overall and products gross margins, 10% growth in services revenue, and a 35% rise in energy production revenue. Management is taking actions to reduce service costs, adjust pricing, and selectively build inventory to accelerate closings. Given the combination of significant execution risk and cash/production constraints but tangible commercial traction and margin improvements, the tone is cautiously optimistic but balanced.Positive Updates
Substantial Product Interest from Hyperscale Data Centers
Hosted 12 product demonstrations (6 in-person, 6 virtual) over the last two months, including 4 in-person demos with hyperscale or hyperscale-campus data centers. Attendees collectively represent >8 GW of operating capacity and multiple GW under construction and roughly 15%–20% of current U.S. data center capacity. Management reports very positive feedback and believes pilot projects with large brands could be transformational.
Negative Updates
Significant Decline in Total Revenue
Total revenues decreased 21% year-over-year (down $1.5 million) to $5.8 million in Q2 2026 from $7.3 million in Q2 2025, primarily due to lower product segment revenue.
Read all updates
Q2-2026 Updates
Positive
Negative
Substantial Product Interest from Hyperscale Data Centers
Hosted 12 product demonstrations (6 in-person, 6 virtual) over the last two months, including 4 in-person demos with hyperscale or hyperscale-campus data centers. Attendees collectively represent >8 GW of operating capacity and multiple GW under construction and roughly 15%–20% of current U.S. data center capacity. Management reports very positive feedback and believes pilot projects with large brands could be transformational.
Read all positive updates
Company Guidance
Management guided that revenue should rise in Q3 as product bookings convert — noting a base business backlog of >$8.0M plus an expected $2.0M–$3.0M of additional projects to close in the next few months — and that collecting more deposits and building some inventory of dual‑source chillers/Tecogen modules will improve cash flow and compress lead times. They expect the full benefit of mid‑Q2 service cost reductions to be realized beginning in Q3 (Q2 included roughly $300k of one‑time service costs that knocked service margins down ≈7 percentage points), even as Q2 operating expenses were $4.3M (up 11.6% YoY) and adjusted EBITDA was a loss of $1.7M. For context, Q2 results were: total revenue $5.8M (down 21% YoY, −$1.5M), gross profit $2.2M (down 11.9%), gross margin 37.8% (up ~4 ppt), net loss $2.2M (vs $1.5M LY); products revenue $1.1M (down 64% YoY) with product gross margin 48.5% (up 19.2 ppt), services revenue $4.4M (up 10% YoY) with largely flat service margin excluding one‑times, and energy production revenue $240k (up 35%) with a guarantee shortfall just under $100k. Management emphasized that recent commercial traction — 12 demonstrations (6 in‑person, 6 virtual) representing >8 GW of operating capacity and ~15–20% of U.S. data center capacity — could materially accelerate bookings if pilot projects are secured.Tecogen Financial Statement Overview
Summary
Income Statement
26
Negative
Balance Sheet
63
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.92M | 27.07M | 22.62M | 25.14M | 25.00M | 24.40M |
| Gross Profit | 11.49M | 9.82M | 9.87M | 10.20M | 11.07M | 11.59M |
| EBITDA | -11.11M | -7.20M | -3.78M | -3.88M | -1.90M | 4.27M |
| Net Income | -12.51M | -8.25M | -4.76M | -4.60M | -2.45M | 3.70M |
Balance Sheet | ||||||
| Total Assets | 31.60M | 36.99M | 31.09M | 27.79M | 28.25M | 32.36M |
| Cash, Cash Equivalents and Short-Term Investments | 6.78M | 12.43M | 5.41M | 1.35M | 1.91M | 3.61M |
| Total Debt | 2.62M | 2.82M | 3.73M | 1.48M | 1.31M | 1.96M |
| Total Liabilities | 14.05M | 15.52M | 20.97M | 13.14M | 9.27M | 11.23M |
| Stockholders Equity | 17.72M | 21.65M | 10.23M | 14.75M | 19.09M | 21.21M |
Cash Flow | ||||||
| Free Cash Flow | -11.84M | -10.31M | 3.09M | -864.66K | -1.70M | 310.49K |
| Operating Cash Flow | -11.60M | -9.91M | 4.06M | -817.81K | -1.35M | 465.03K |
| Investing Cash Flow | -161.68K | -464.13K | -1.01M | -244.89K | -348.56K | -215.06K |
| Financing Cash Flow | 16.90M | 17.40M | 1.01M | 500.00K | 0.00 | 1.87M |
Tecogen Technical Analysis
Negative
3.18
Price Trends
2.79
Negative
3.58
Negative
3.84
Negative
Market Momentum
-0.22
Negative
45.53
Neutral
36.82
Neutral
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 3.18 is above the 20-day moving average (MA) of 2.32, above the 50-day MA of 2.79, and below the 200-day MA of 3.84, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 36.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TGEN.
Tecogen Risk Analysis
Tecogen disclosed 42 risk factors in its most recent earnings report. Tecogen reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tecogen Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $165.87M | 13.51 | 20.22% | 3.21% | 4.95% | 28.35% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $105.98M | -15.88 | -4.95% | ― | 4.69% | -304.68% | |
50 Neutral | $973.84M | -3.55 | -22.15% | ― | 1.09% | 62.70% | |
48 Neutral | $124.52M | -4.12 | -124.68% | ― | 58.22% | -243.18% | |
46 Neutral | $63.39M | -5.07 | -59.21% | ― | -6.45% | -106.73% | |
38 Underperform | $336.85K | >-0.01 | 256.59% | ― | ― | 67.65% |
* Industrials Sector Average
TGEN
Tecogen
2.33
-7.15
-75.42%
ESP
Espey Mfg & Electronics
55.32
17.47
46.15%
FCEL
Fuelcell Energy
12.38
4.20
51.34%
ULBI
Ultralife
15.61
8.75
127.55%
SDST
Stardust Power
0.01
-4.92
-99.76%
NEOV
NeoVolta
2.30
-1.84
-44.44%
Tecogen Corporate Events
Business Operations and StrategyProduct-Related Announcements
Tecogen gains momentum with Cloudsmart data center success
Positive
Oct 14, 2026
On October 14, 2026, Tecogen Inc. reported a customer testimonial from Cloudsmart Inc., a Tier 3 SOC 2 cloud and AI data center in Connecticut, highlighting the deployment of Tecogen’s InVerde cogeneration system. Cloudsmart’s CEO Roby...
Business Operations and StrategyFinancial Disclosures
Tecogen Reports Weak Q2 Results, Highlights Data Center Focus
Negative
Aug 12, 2026
On August 12, 2026, Tecogen reported second-quarter 2026 revenues of $5.75 million and a net loss of $2.15 million for the period ended June 30, 2026, down from $7.29 million in revenue and a $1.46 million net loss a year earlier, with cash and eq...
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.