Montana Technologies (AIRJ) AI Stock Analysis

• Market Cap: $277.50M
• Dividend Yield: N/A
• Average Volume (3M): 78.44K
• Price to Earnings (P/E): 1.0
• Beta (1Y): 0.38
• Revenue Growth: N/A
• EPS Growth: 13352.72%
• Country: US
• Employees: 17
• Sector: Financial
• Sector Strength: 84
• Industry: Electrical Equipment & Parts
• EPS (TTM): 4.78
• Shares Outstanding: 56,061,240
• 10 Day Avg. Volume: 84,572
• 30 Day Avg. Volume: 78,445
• PEG Ratio: 0.00008
• Price to Book (P/B): N/A
• Price to Sales (P/S): 179600.64
• Price to Cash Flow (P/CF): N/A
• 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: $11.50
• Price Target Upside: 132.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Montana Technologies struggles with financial performance due to zero revenue and negative cash flows, impacting its overall stability. Despite a low P/E ratio, suggesting undervaluation, the bearish technical indicators reinforce a negative outlook. However, recent corporate events indicate potential for future market opportunities, offsetting some of the negative aspects. Overall, significant improvements in core operations and market traction are needed to enhance the stock's attractiveness.

Positive Factors

Energy Efficiency

The system has the potential to save up to 75% of energy compared to conventional Heating, Ventilation, and Air Conditioning (HVAC) systems and help lower the need for harmful refrigerants.

Market Potential

The company is positioned to gain share of a very significant global addressable market due to its applications in cooling and water harvesting.

Technology Differentiation

Comparatively, peer technologies have achieved a COP between 3.0-3.5, demonstrating the company’s technological differentiation.

Negative Factors

Technology Readiness

Near-term catalysts for the stock primarily stem from demonstrated pilots and further evidence of commercial readiness.

Montana Technologies Business Overview & Revenue Model

Company Description

Montana Technologies Corp. operates as a thermal energy and water harvesting technology company. It provides efficient and sustainable air conditioning and pure water from air through its transformational AirJoule technology. The company was founded on March 14, 2024 and is headquartered in Ronan, MT.

How the Company Makes Money

Montana Technologies generates revenue primarily through the sale and licensing of its proprietary aerospace technologies and systems to commercial airlines, defense contractors, and government agencies. The company also earns income from long-term maintenance and support contracts, consulting services, and technology integration projects. Strategic partnerships with major aerospace firms and government bodies further bolster its revenue streams, facilitating joint ventures and collaborative projects that expand its market reach and enhance its technological offerings.

Montana Technologies Financial Statement Overview

Summary

Montana Technologies faces significant challenges with revenue generation and operational profitability, as indicated by consistently zero revenue and negative margins. The balance sheet offers some stability with strong equity, but historical issues and negative cash flows highlight potential liquidity risks. Overall, the company needs to address core operational inefficiencies and improve revenue streams for sustainable growth.

Income Statement

Montana Technologies reports zero revenue consistently, indicating a critical issue with revenue generation. Despite reported net income in the TTM, EBIT and EBITDA remain negative, highlighting operational inefficiencies. The absence of revenue growth and negative margins across EBIT and EBITDA suggest financial instability.

Balance Sheet

The company has a strong equity base with a substantial stockholders' equity relative to its total assets, indicating potential stability. However, the debt-to-equity ratio is low, reflecting minimal leverage risk. The equity ratio is favorable, but historical negative equity in previous years raises concerns about financial management.

Cash Flow

Operating cash flow is consistently negative, suggesting struggles with cash generation from core operations. The free cash flow is also negative, indicating potential liquidity challenges. The cash flow from financing activities is positive, which could reflect dependency on external financing rather than operational efficiency.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
0.00	0.00	0.00	0.00
	Gross Profit
-62.07K	0.00	0.00	0.00
	EBIT
-11.28M	-6.33M	-2.79M	-2.20M
	EBITDA
-8.94M	3.00M	2.84M	-544.22K
	Net Income Common Stockholders
22.59M	1.24M	-2.79M	-2.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.02M	59.17K	5.21M	3.09M
	Total Assets
369.85M	114.70M	5.40M	3.21M
	Total Debt
154.23K	49.54K	70.75K	0.00
	Net Debt
-27.87M	-59.17K	-5.14M	-3.09M
	Total Liabilities
117.74M	15.55M	234.44K	232.87K
	Stockholders Equity
252.11M	99.15M	-5.79M	-3.00M
Cash Flow		Free Cash Flow
-23.30M	-1.98M	-2.85M	-1.90M
	Operating Cash Flow
-23.28M	-1.98M	-2.85M	-1.89M
	Investing Cash Flow
-20.51K	188.88M	167.55K	-13.02K
	Financing Cash Flow
60.95M	-188.13M	4.97M	4.54M

Montana Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.95
• 50DMA: Negative
• 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 AIRJ, the sentiment is Negative. The current price of 4.95 is below the 20-day moving average (MA) of 5.89, below the 50-day MA of 7.13, and below the 200-day MA of 7.68, indicating a bearish trend. The MACD of -0.70 indicates Negative momentum. The RSI at 34.00 is Neutral, neither overbought nor oversold. The STOCH value of 68.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIRJ.

Montana Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$13.34B	9.25	9.42%	4.85%	16.07%	-8.44%
SLDP	52 Neutral	$205.65M	―	-21.13%	―	15.67%	-45.59%
AMPX	51 Neutral	$286.56M	―	-70.24%	―	166.95%	-3.40%
TE	46 Neutral	$179.33M	―	-26.15%	―	―	-517.75%
FCEL	45 Neutral	$86.69M	―	-18.96%	―	11.09%	0.41%
AIRJ	34 Underperform	$277.50M	1.04	122.81%	―	―	13352.72%

Montana Technologies Corporate Events

Montana Technologies Unveils Innovative Water-from-Air Technology

On March 5, 2025, AirJoule Technologies announced the release of a presentation for upcoming investor conferences, highlighting its innovative technology that efficiently produces pure distilled water from air using ambient air and waste heat. The company is poised to impact several industries, including HVAC and data centers, with its superior performance and energy efficiency, supported by partnerships with major companies like GE Vernova and BASF. The announcement underscores AirJoule’s strategic positioning to address significant market opportunities, estimated at $450 billion, by leveraging its technology to improve water security and energy efficiency.

Montana Technologies Approves Executive Performance-Based Awards

On February 12, 2025, AirJoule Technologies Corporation’s Compensation Committee approved performance-based restricted stock unit awards for executives Matthew B. Jore and Jeffrey D. Gutke under the company’s 2024 Incentive Award Plan. These awards, which are subject to vesting based on either stock price goals or cumulative revenue, aim to enhance shareholder returns and company performance over a three-year period ending December 31, 2027. The initiative reflects the company’s commitment to aligning executive compensation with performance metrics, potentially impacting company operations and stakeholder interests.