Delta Cleantech, Inc. (DELT) AI Stock Analysis

• Market Cap: $2.88M
• Dividend Yield: N/A
• Average Volume (3M): 26.08K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.52
• Revenue Growth: -71.89%
• EPS Growth: 12.69%
• Country: CA
• Employees: N/A
• Sector: Industrials
• Sector Strength: 78
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.03
• Shares Outstanding: 115,073,100
• 10 Day Avg. Volume: 30,725
• 30 Day Avg. Volume: 26,081
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.95
• Price to Cash Flow (P/CF): -2.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Delta Cleantech's financial challenges weigh heavily on its overall score due to declining revenues and profitability issues. However, positive technical indicators and a strategic corporate event provide some support. The strategic sale to Scovan offers a promising avenue for future revenue, but current valuation metrics remain unattractive. The overall score reflects a cautious outlook with potential for improvement if operational efficiencies and financial metrics can be enhanced.

Delta Cleantech, Inc. Business Overview & Revenue Model

Company Description

Delta CleanTech Inc. engages in the CO2 capture, hydrogen production, solvent and ethanol purification, methane collection and destruction, and carbon credit certification and trading businesses in Canada. It offers CO2 capture solutions for CO2 enhanced heavy oil production, coal and gas power generation, and the industrial food grade CO2 markets through LCDesign, PDOengine, and DeltaSolv technologies. The company also provides Delta Purification system that offers reclaiming amine-based solvents used in natural gas processing and CO2 capturing processes; and reclaiming glycols, such as mono-ethylene glycol and tri-ethylene glycol used for natural gas dehydration, cooling, and anti-freeze processes. In addition, it provides technology for the development of hydrogen fueling stations; and develops, verifies, and markets CO2 offset credits. The company was incorporated in 2020 and is headquartered in Calgary, Canada. Delta CleanTech Inc. is a subsidiary of HTC Purenergy Inc.

How the Company Makes Money

Delta Cleantech, Inc. generates revenue primarily through the sale and licensing of its proprietary carbon capture technologies and systems to industrial clients seeking to comply with environmental regulations and reduce their carbon emissions. Additionally, the company offers consulting services related to the implementation and optimization of CCUS solutions, which forms another significant revenue stream. Collaborations and partnerships with governmental and private entities focused on clean energy initiatives also contribute to Delta Cleantech's earnings by facilitating the adoption of its technologies in large-scale projects.

Delta Cleantech, Inc. Financial Statement Overview

Summary

Delta Cleantech faces substantial financial difficulties, with declining revenue, negative profit margins, and significant losses. The balance sheet shows increasing leverage and declining equity. Cash flow struggles persist with negative operating and free cash flows, indicating poor operational efficiency and cash management challenges.

Income Statement

Delta Cleantech faces significant challenges in profitability and revenue generation. The company has shown a declining revenue trend with a sharp fall from $1,412,984 in 2022 to $483,647 in TTM 2024, resulting in negative revenue growth. Profit margins are extremely weak, with both gross and net profit margins being negative due to higher costs and substantial losses. Despite a reduction in net loss from 2023 to TTM 2024, the company still struggles with negative EBIT and EBITDA margins, indicating operational inefficiency.

Balance Sheet

The balance sheet reflects moderate stability but increasing financial risk. The debt-to-equity ratio has risen as total debt increased significantly in TTM 2024, while stockholders' equity declined. The equity ratio remains relatively strong but has decreased, indicating reduced financial leverage. Return on equity is negative, showing the company is not generating returns for shareholders.

Cash Flow

Cash flow analysis presents a concerning picture with negative operating and free cash flows, indicating cash burn from operations and investments. The free cash flow has not improved over the years, highlighting persistent cash flow challenges. The operating cash flow to net income ratio is negative, suggesting operational cash flow inefficiencies.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.03M	1.41M	375.00K	0.00
	Gross Profit
644.06K	992.11K	284.93K	0.00
	EBIT
-2.88M	-2.84M	-3.64M	0.00
	EBITDA
-2.50M	-2.48M	-3.97M	0.00
	Net Income Common Stockholders
-2.77M	-2.78M	-4.26M	0.00
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
283.38K	1.90M	4.26M	10.00
	Total Assets
3.30M	5.41M	7.53M	10.00
	Total Debt
54.38K	101.17K	52.98K	0.00
	Net Debt
-229.00K	-300.00K	-706.93K	-10.00
	Total Liabilities
369.94K	535.61K	379.18K	0.00
	Stockholders Equity
3.03M	4.95M	7.15M	10.00
Cash Flow		Free Cash Flow
-1.93M	-2.30M	-2.66M	0.00
	Operating Cash Flow
-1.90M	-2.25M	-2.62M	0.00
	Investing Cash Flow
1.11M	1.87M	-3.69M	0.00
	Financing Cash Flow
314.00K	21.00K	7.07M	10.00

Delta Cleantech, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DELT, the sentiment is Positive. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.55 is Neutral, neither overbought nor oversold. The STOCH value of -33.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DELT.

Delta Cleantech, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$4.27B	11.80	5.31%	249.79%	4.07%	-9.02%
GRN	58 Neutral	C$14.12M	―	-5.60%	―	-10.37%	95.22%
BLN	55 Neutral	C$557.83M	―	-14.10%	―	31.68%	67.90%
DELT	47 Neutral	$2.88M	―	-93.11%	―	-71.89%	12.69%

Delta Cleantech, Inc. Corporate Events

Delta CleanTech Sells Emissions Reduction Divisions to Scovan

Delta CleanTech Inc. has announced an asset sale agreement with Scovan Inc. to sell its emissions reduction divisions, including CO2 capture assets, for up to $1,050,000 and project royalties of up to $15,300,000 over seven years. This strategic move allows Delta to benefit from ongoing royalty revenue and enhance Scovan’s position in the carbon capture market. The transaction signifies a new chapter for carbon capture advancement in Western Canada, with Scovan leveraging Delta’s expertise to provide enhanced value to clients.

Delta CleanTech and NRC Unveil CO2 Capture Study

Delta CleanTech Inc., in collaboration with Canada’s National Research Council, has successfully completed a study on CO2 capture corrosion, highlighting the durability of their formulated solvents. The findings suggest that using AISI 304L stainless steel in these systems can minimize material degradation, ensuring long-term efficiency and reduced costs for carbon capture plants.