CHAR Technologies (YES) AI Stock Analysis

• Market Cap: C$26.11M
• Dividend Yield: N/A
• Average Volume (3M): 60.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: 64.60%
• EPS Growth: 26.47%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 67
• Industry: Waste Management
• EPS (TTM): -0.08
• Shares Outstanding: 118,687,380
• 10 Day Avg. Volume: 95,997
• 30 Day Avg. Volume: 60,015
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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

The overall score of 57 reflects significant financial challenges, including high leverage and cash flow constraints. However, positive technical indicators and strategic corporate developments offer a cautiously optimistic outlook. Valuation remains a concern due to ongoing losses and a negative P/E ratio, suggesting that profitability improvements are essential for a more favorable stock assessment.

CHAR Technologies Business Overview & Revenue Model

Company Description

CHAR Technologies Ltd. (YES) is a leading clean technology company focused on providing sustainable solutions for the industrial, commercial, and municipal sectors. The company specializes in developing and commercializing advanced technologies for the conversion of organic waste into renewable energy and biocarbon products. CHAR Technologies' core offerings include high-temperature pyrolysis systems that transform various waste streams into clean energy and valuable byproducts, contributing to a circular economy.

How the Company Makes Money

CHAR Technologies generates revenue through the sale and licensing of its advanced pyrolysis systems and related technologies. The company earns income by offering comprehensive solutions that include the design, installation, and maintenance of its equipment. Additionally, CHAR Technologies capitalizes on the sale of biocarbon products, such as activated biochar, which are produced through its proprietary processes. Partnerships with government entities, waste management companies, and industrial clients play a significant role in driving the company's revenue, as these collaborations often lead to long-term contracts and recurring income streams. The company's focus on sustainable and renewable solutions positions it to benefit from the growing demand for environmentally friendly waste management and energy generation solutions.

CHAR Technologies Financial Statement Overview

Summary

CHAR Technologies faces significant financial challenges, with persistent losses, high leverage, and cash flow constraints. While revenue has grown, profitability and cash generation remain critical areas for improvement. The company's ability to manage debt and improve operational efficiency is crucial for its financial health.

Income Statement

The income statement shows a concerning trajectory with declining profitability. The TTM data reveals a net loss and negative margins, including a gross profit margin of 7.92% and a net profit margin of -246.13%. There has been some revenue growth, with a 57.77% increase from 2023 to 2024, but the company struggles with high operational costs, reflected in negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet indicates financial instability with a high debt-to-equity ratio of 2.16 in the latest TTM period, suggesting high leverage. Stockholders' equity has diminished significantly, and the equity ratio is only 13.23%, indicating potential risks in the company's capital structure.

Cash Flow

The cash flow statement highlights challenges in generating cash from operations, with negative free cash flow and a declining operating cash flow to net income ratio, which stood at 0.53 for the TTM. This signals issues in converting revenue into cash, impacting liquidity and financial flexibility.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.16M	2.00M	1.46M	1.38M	1.76M
	Gross Profit
631.58K	640.17K	642.01K	709.26K	909.42K
	EBIT
-8.12M	-9.23M	-7.35M	-3.46M	-1.26M
	EBITDA
-6.08M	-6.52M	-5.10M	-2.42M	-137.21K
	Net Income Common Stockholders
-8.33M	-8.43M	-6.90M	-3.26M	-703.80K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
948.69K	6.09M	460.48K	3.00M	129.13K
	Total Assets
15.35M	18.87M	9.95M	10.32M	3.41M
	Total Debt
5.04M	3.81M	886.90K	308.57K	301.51K
	Net Debt
4.09M	1.71M	426.42K	-2.69M	172.38K
	Total Liabilities
14.88M	11.93M	5.25M	4.78M	2.10M
	Stockholders Equity
471.69K	6.93M	4.70M	5.54M	1.31M
Cash Flow		Free Cash Flow
-7.44M	-9.45M	-7.82M	-3.75M	-394.31K
	Operating Cash Flow
-3.99M	-4.86M	-5.03M	-2.21M	-368.10K
	Investing Cash Flow
548.43K	-8.60M	-2.79M	-1.55M	-26.21K
	Financing Cash Flow
2.30M	15.09M	5.28M	6.63M	298.04K

CHAR Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:YES, the sentiment is Positive. The current price of 0.22 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.18, and above the 200-day MA of 0.22, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 62.49 is Neutral, neither overbought nor oversold. The STOCH value of 64.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:YES.

CHAR Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPI	76 Outperform	$4.77B	17.70	6.48%	6.50%	5.08%	―
INE	67 Neutral	C$2.75B	267.06	1.44%	2.66%	2.60%	―
BLX	61 Neutral	C$3.13B	86.95	2.23%	2.17%	-16.54%	-53.85%
Sector *	60 Neutral	$10.93B	10.46	-6.70%	2.99%	7.54%	-12.22%
GRN	58 Neutral	C$14.12M	―	-5.60%	―	-10.37%	95.22%
YES	57 Neutral	C$26.11M	―	-195.17%	―	64.60%	26.47%
BCE	57 Neutral	$27.29B	165.64	1.80%	13.37%	-1.07%	-92.15%

CHAR Technologies Corporate Events

CHAR Technologies Partners with BMI Group for Renewable Energy Expansion

CHAR Technologies Ltd. has announced a strategic partnership with The BMI Group, which includes a non-brokered private placement of C$2 million to accelerate renewable energy projects. This collaboration aims to expedite the commercial biocarbon production at CHAR Tech Thorold by Q4 2025, with BMI Group investing further in project-level ownership. The partnership also plans to develop a new renewable energy facility at Bioveld North, enhancing CHAR Tech’s industry positioning and providing growth opportunities.

Spark’s Take on TSE:YES Stock

According to Spark, TipRanks’ AI Analyst, TSE:YES is a Neutral.

The overall score of 57 reflects significant financial challenges, including high leverage and cash flow constraints. However, positive technical indicators and strategic corporate developments, such as leadership recognition and alignment of employee incentives, offer a cautiously optimistic outlook. Valuation remains a concern due to ongoing losses and a negative P/E ratio, suggesting that profitability improvements are essential for a more favorable stock assessment.

To see Spark’s full report on TSE:YES stock, click here.

CHAR Technologies CEO Andrew White Recognized as 2025 Changemaker

CHAR Technologies’ CEO, Andrew White, has been named a 2025 Changemaker by The Globe and Mail for his innovative work in decarbonizing the steel industry. White’s leadership in developing CHAR Tech’s high-temperature pyrolysis process, which transforms forestry waste into biocoal, has significantly reduced greenhouse gas emissions in the steel industry. This recognition underscores CHAR Tech’s impact on global sustainability and its commitment to providing scalable, clean energy solutions.

CHAR Technologies Announces New Stock Options and RSUs Grants

CHAR Technologies Ltd. has announced the approval of stock options and Restricted Stock Units (RSUs) grants to its employees, consultants, directors, and officers. These grants, subject to approval by the TSX Venture Exchange, are part of the company’s long-term incentive plan and aim to align with CHAR’s strategic goals. The initiative reflects CHAR’s commitment to rewarding its team while reinforcing its position in the sustainable energy sector, potentially enhancing stakeholder engagement and operational growth.