Verde Clean Fuels (VGAS) AI Stock Analysis

• Market Cap: $163.05M
• Dividend Yield: N/A
• Average Volume (3M): 8.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: N/A
• EPS Growth: -29.15%
• Country: US
• Employees: 10
• Sector: Utilities
• Sector Strength: 86
• Industry: Renewable Utilities
• EPS (TTM): -0.08
• Shares Outstanding: 22,049,622
• 10 Day Avg. Volume: 3,257
• 30 Day Avg. Volume: 8,429
• PEG Ratio: 0.41
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.24
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 83.03
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -3.29
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 37 Underperform
• Price Target: ―

Verde Clean Fuels faces significant financial challenges, with no revenue and high liabilities, which heavily impact its overall score. While technical indicators show a bearish trend, the recent equity investment provides some positive outlook. However, the negative P/E ratio and lack of dividends further complicate its valuation. Overall, the stock remains a risky proposition given its current financial instability.

Verde Clean Fuels Business Overview & Revenue Model

Company Description

Verde Clean Fuels, Inc. focuses on suppling gasoline and other fuels derived from renewable feedstocks or natural gas. It specializes in the conversion of synthesis gas, or syngas, derived from feedstocks, such as biomass, municipal solid waste, and mixed plastics, as well as natural gas, including synthetic natural gas and other feedstocks, into gasoline through proprietary liquid fuels technology. Verde Clean Fuels, Inc. was founded in 2007 and is based in Hillsborough, New Jersey.

How the Company Makes Money

Verde Clean Fuels generates revenue primarily through the sale of its renewable fuel products. The company's business model involves converting waste materials into clean fuels, which are then sold to various industries seeking sustainable energy solutions. Key revenue streams include contracts with industrial clients, partnerships with governmental and non-governmental organizations focused on reducing carbon footprints, and potential licensing agreements for its proprietary technology. Strategic partnerships with other energy companies and technology providers also play a significant role in enhancing its market reach and profitability.

Verde Clean Fuels Financial Statement Overview

Summary

Verde Clean Fuels is struggling financially, with no revenue generation and ongoing net losses. The balance sheet shows improvement in equity, yet it remains weak due to high liabilities. Cash flow challenges persist, marked by negative free cash flow and operating cash deficits. The company must address its revenue and cash generation issues to improve its financial health.

Income Statement

Verde Clean Fuels has consistently reported zero revenue over the past five years. The company shows significant losses with no gross profit or EBIT, indicating negative profitability trends. Significant net losses and fluctuating EBIT and EBITDA figures suggest instability and a lack of revenue generation in the renewable utilities sector.

Balance Sheet

The company's balance sheet reveals a significant improvement in stockholders' equity, moving from a negative position to positive in the latest year. However, the debt-to-equity ratio is not favorable given the minimal revenue generation, and the equity ratio indicates a capital structure heavily reliant on liabilities. Despite a growing asset base, the company's financial health is compromised by its liabilities and lack of revenue.

Cash Flow

The cash flow statement reflects negative operating and free cash flow over the years, highlighting a challenging cash management situation. Despite some positive financing activities, the company's inability to generate positive free cash flow is concerning. The operating cash flow to net income ratio is unfavorable, indicating poor cash generation relative to the net losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	247.88K	0.00	0.00
	Gross Profit
0.00	-544.47K	0.00	0.00	0.00
	EBIT
0.00	10.55M	2.72M	-12.93M	-3.52M
	EBITDA
-10.14M	-9.55M	2.97M	-474.58K	-3.49M
	Net Income Common Stockholders
-10.52M	-2.74M	17.82M	-12.93M	-3.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.04M	28.78M	463.48K	87.64K	1.05M
	Total Assets
23.57M	31.93M	6.36M	2.23M	3.25M
	Total Debt
232.16K	939.15K	334.34K	8.19K	44.96K
	Net Debt
-18.81M	-27.84M	-129.14K	-79.45K	-1.01M
	Total Liabilities
2.89M	3.10M	5.25M	9.02M	422.35K
	Stockholders Equity
10.25M	11.10M	-11.67M	-14.39M	-1.47M
Cash Flow		Free Cash Flow
-11.43M	-9.17M	-3.28M	-2.63M	-6.53K
	Operating Cash Flow
-8.88M	-9.12M	-3.28M	-2.63M	-2.21K
	Investing Cash Flow
-854.93K	-58.59K	-4.41K	-290.10K	-4.32K
	Financing Cash Flow
0.00	37.52M	3.66M	1.95M	13.33K

Verde Clean Fuels Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.66
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VGAS, the sentiment is Positive. The current price of 3.66 is above the 20-day moving average (MA) of 3.43, above the 50-day MA of 3.45, and below the 200-day MA of 3.84, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.68 is Neutral, neither overbought nor oversold. The STOCH value of 52.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VGAS.

Verde Clean Fuels Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$8.54B	10.24	4.67%	4.36%	4.12%	-13.19%
NRGV	52 Neutral	$143.56M	―	-82.96%	―	-86.10%	-49.68%
WAVE	47 Neutral	$35.05M	―	-27.32%	―	-46.17%	-18.67%
HTOO	45 Neutral	$7.52M	―	-1134.77%	―	―	―
ADN	41 Neutral	$7.62M	―	-771.66%	―	10.92%	52.75%
VGAS	37 Underperform	$163.05M	―	-17.03%	―	―	-29.15%
BNRG	32 Underperform	$5.17M	―	-335.00%	―	―	―

Verde Clean Fuels Corporate Events

Verde Clean Fuels Expands Board with Major Investment

On January 29, 2025, Verde Clean Fuels announced the completion of a $50 million equity investment by Cottonmouth Ventures, a subsidiary of Diamondback Energy, making Cottonmouth the second largest shareholder in Verde with a total investment of $70 million. This investment will support Verde’s plans to develop natural gas-to-gasoline production plants using its STG+® technology. Alongside the investment, Verde expanded its Board to include Johnny Dossey as a director, representing Cottonmouth. The move is expected to enhance operational efficiency, support sustainability goals, and advance the construction of commercial production plants, potentially benefiting stakeholders by providing a high-value outlet for natural gas and contributing to lower carbon fuel production.